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(REF: PN-06/10-15) 

      

IMPLEMENTATION OF SANCTIONS UNDER THE NATIONAL PENSIONS ACT, 2008 (ACT 766)

In accordance with sections 7(q) and197 of the NationalPensions Act, 2008 (Act 766), the National Pensions Regulatory Authority (NPRA) has begun a Sanctions Regime effective 1st October, 2015. The Sanctions Regime is aimed at achieving full compliance with the National Pensions Act, 2008 (Act 766) and associated Regulations and Guidelines.

All Employers and Service Providers particularly Corporate Trustees, Individual Trustees, Pension Fund Managers and Pension Fund Custodians are hereby notified. A summary of the framework for offences and recommended penalties are provided in the table below for your information:

NO.

OFFENCES

PENALTIES

 

Failure of an Approved Trustee to employ a Compliance Officer

250 penalty units, and for each day that the default subsists shall pay a fine of 50 penalty units and shall have its licence suspended after 30 days

 

Failure of an Approved Trustee to comply with Regulations:

  • 23: Maintaining investment policy
  • 24: Maintaining control objectives and internal control procedures or
  • 26: Compliance with investment standards

250 penalty units for each day that the default subsists and shall have its licence suspended after 30 days.

 

Failure to comply with a requirement or duty imposed on an approved Trustee by Regulation:

  • 28: General duties with respect to scheme administration
  • 29: Appointment of pension fund managers
  • 30: Independence of pension fund managers
  • 31: Investment management contract
  • 32: Approved Trustee (which is a company) to ensure compliance with prescribed capital requirements
  • 33: Investments of scheme funds
  • 34: Appointment of Custodian for scheme assets
  • 35: Prohibited investment practices
  • 36: Issues of conflict of interest or
  • 47: Ensuring separation of scheme assets

Not less than 1,250 penalty units and not more than 2,500 penalty units or not more than five years imprisonment or to both

 

Failure of an Approved Trustee to comply with Regulation 52

52: Custodian agreement

Not less than 1,250 penalty units or not more than 2,550 penalty units or to a term of imprisonment not more than five years or to both

 

Failure of an Approved Trustee to comply with the Authority’s directive under Regulation 56(1)

  • 56(1): Power of the Authority to be aware of matters under Regulation 55, and adherence to the Authority’s directive given thereafter

Not less than 1,250 penalty units and not more than 2,550 penalty units or to a term of imprisonment not more than five years or to both

 

Failure of an Approved Trustee to comply with Regulation 63:

  • 63(1): Financial statements to be in conformity with the applicable accounting guideline

250 penalty units for each day that the default subsists and shall have its licence suspended after 30 days.

 

Failure to comply with requirements or duty imposed on Approved Trustees under Regulation 57 or 58

  • 57: Keeping proper accounting records or
  • 58: Separate accounts for each scheme member

Not less than 1,250 penalty units and not more than 2,550 penalty units or to a term of imprisonment not more than five years or to both

 

Failure of an Approved Trustee to comply with or secure compliance of Regulation 75.

75(1): Ensuring audit of financial statements.

Not less than 1,250 and not more than 2550 penalty units or to term of imprisonment not more than five years or to both.

 

Failure of an Approved Trustee to comply with requirements of Regulation 76

1,250 penalty units or to a term of imprisonment not less than one year and more than four years or to both


 

NO.

OFFENCES

PENALTIES

 

Failure of an Approved Trustee to comply with requirement of Regulation 77.

  • 77: Authority’s directives where Approved Trustee fails to appoint an Auditor

1,250 penalty units

 

Failure to comply with Regulation 78

  • 78: Qualifications of an Auditor

Not less than 1,250 and not more than 2550 penalty units or to term of imprisonment not more than five years or to both

 

Failure of an Approved Trustee to comply with Authority’s directive under Regulation 84(1)

  • 84(1): rectifying a matter in an Auditor’s report as directed by the Authority in specified period at Trustee’s own expense.

Not less than 1,500 and not more than 2550 penalty units or to term of imprisonment not more than five years or to both.

 

Contravention of requirements under Regulation 87(1)

  • 87(1): Obstruction of Auditor

Not less than 1,500 and not more than 2550 penalty units or to term of imprisonment not more than five years or to both.

 

Failure of a company to comply with Regulation 95(5)

95(5): Allowing an Auditor access to accounting and other records as well as all relevant information and ensuring there are no hindrance, obstructions or delays.

250 penalty units for each day the default subsists and shall have licence suspended after 30 days

 

An Approved Trustee of a company failing to comply with directives by the Authority under Regulation 96(1) or 96(3)

96: Power of Authority to direct approved Trustee to rectify matter within a specific period

250 penalty units for each day the default subsists and shall have licence suspended after 30 days

 

Failure of an Approved Trustee to comply with directive under Regulation 96(2)

96: Power of Authority to direct approved trustee to rectify matters

250 penalty units for each day the default subsists and shall have licence suspended after 30 days

 

Failure of Approved Trustee to comply with Regulation 107

107: Crediting of payments

250 penalty units for each day the default subsists and shall have licence suspended after 30 days

 

Failure of an employer to comply with Regulation 114

114: Employers keeping records

250 penalty units for each day the default subsists and a suspension of license after 30 days

 

Failure of an Approved Trustee to comply with Regulations:

  • 132: Ensuring payment of accrued benefits within certain period
  • 133: Benefits not to be paid if scheme is being audited or investigated
  • 134: Ensuring claimant is provided with final benefits statement or
  • 140: To keep a register of scheme members with unclaimed benefits

250 penalty units for each day the default subsists and shall have licence suspended after 30 days

 

Failure to comply with Regulation 150.

150 (3) Except under direction of liquidator, a person exercising administrative functions of an Employer Sponsored Scheme after appointment of the Liquidator commits an offense and is held liable.

150 (4) Failure to comply with a requirement of a liquidator

150 (5b) False or misleading statements recklessly made or statement known to be false or misleading in material respect in any document given to a liquidator

Not less than 1,500 and not more than 2550 penalty units or to a term of imprisonment not more than five years or to both.

 

Contravenes Section 200 of Act 766: a provision of this Act for which a penalty is not provided

On summary conviction to a fine of not more than one thousand penalty unit or to a term of imprisonment of not less than one year or to both

 

Contravenes Section 94:Failure to meet minimum capital adequacy requirement

250 penalty units for each day the default subsists and a suspension of license after 30 days.

 

Contravenes Section 97: Non submission of Monthly Reports

250 penalty units for each day the default subsists and a suspension of license after 30 days

 

Non submission of Quarterly Reports

250 penalty units for each day the default subsists and a suspension of license after 30 days

 

Late submission of Monthly Reports

250 penalty units for each day the default subsists and a suspension of license after 30 days

 

Late submission of Quarterly Reports

250 penalty units for each day the default subsists and a suspension of license after 30 days

 

Incomplete submission of report

250 penalty units for each day the default subsists and a suspension of license after 30 days

Employers and Service Providers in the pensions’ sector are to note that the Authority will demand full compliance with the sanctions regime. A copy of the sanctions regime document can be obtained from the NPRA Head Office or Website, www.npra.gov.gh.

The Authority also wishes to encourage the general public especially workers to volunteer information on the conduct of Employers and Service Providers through: This email address is being protected from spambots. You need JavaScript enabled to view it. or 0302 968692/3 to help ensure compliance. AToll free number (0800 766 000) will soon be activated for public use.

                                                          

ISSUED BY NPRA

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Over the years, concerns have been raised and agitations made by public servants over inadequacies of the level of pensions to sustain a respectable life for retired public servants. Of particular concern to most workers’ groups has been the low pensions received by workers ... | Readmore