Compulsory enrolment of employers without registered 2nd tier Schemes
The National Pensions Regulatory Authority (NPRA) has assigned Corporate Trustees to Employers who have failed to enrol under the mandatory 2nd Tier Occupational Pension Scheme, for immediate and compulsory enrolment.
With effect from 1st December, 2015, all affected Employers or Establishments are required to cooperate with their respective Corporate Trustees to complete the enrolment process. Once enrolled, such employers will only be allowed to transfer to another scheme after 12 months of consistently paying the monthly 2nd Tier contributions (i.e. 5% of contributor’s basic salary).
The compulsory enrolment onto the mandatory scheme is the first line of action for the affected Employers or Establishments. The Authority reserves the right to invoke punitive measures including a fine or a term of imprisonment or both in line with provisions of the National Pensions Act, 2008 (Act 766).
The Authority also wishes to inform Workers and Employers that enrolment under the 2nd Tier Scheme is a pre-requisite for accessing funds in the Temporary Pension Fund Account (TPFA) with the Bank of Ghana since the funds can only be transferred to a registered scheme administered by a licenced Trustee.
ISSUED BY NPRA
3rd December, 2015