The National Pensions Regulatory Authority (NPRA) has announced a nationwide crackdown on employers who deduct pension contributions from workers’ salaries but fail to remit Tier 2 funds, warning that persistent offenders will face prosecution.
Deputy Chief Executive Officer of the Authority, Victor Azumah, said the move is part of intensified efforts to safeguard the retirement benefits of Ghanaian workers and restore confidence in the country’s pension system.
He described the failure of employers to remit deducted contributions as a serious offence and a violation of workers’ rights, stressing that the NPRA will no longer tolerate such practices.
“Our priority is to ensure compliance, but we will not hesitate to prosecute where violations persist,” he stated.
As part of the enforcement drive, Mr. Azumah disclosed that the Authority has trained more than 40 prosecutors across the country to strengthen its legal capacity to deal with non-compliant employers.
The initiative, he explained, forms part of a broader strategy to ensure strict adherence to the country’s three-tier pension scheme, particularly the occupational Tier 2 component, which is privately managed but regulated by the NPRA.
Under the pension framework, employers are required not only to deduct contributions from employees’ salaries but also to remit them promptly to licensed pension fund managers.
Failure to do so undermines workers’ long-term financial security and weakens the integrity of the system.
Mr. Azumah further urged employers to ensure that all employees are duly registered with approved trustees and pension schemes to guarantee transparency and accountability.
The NPRA warned that sanctions will be strictly enforced against defaulters. In addition to prosecution, employers who fail to comply risk financial penalties, including a surcharge of three percent on outstanding payments.
“No employer should default in payment without proper communication. Any employer who does so will be surcharged,” he cautioned.
He added that continued non-compliance could lead to court action and recovery proceedings to retrieve unpaid contributions.
He encouraged workers to regularly monitor their pension statements and report any discrepancies.
A Daily Guide Report