NPRA has prosecuted over 100 employers and recovered GH¢27 million in pension defaults

The National Pensions Regulatory Authority has prosecuted more than 100 employers for failing to remit Tier 2 pension contributions and recovered GH¢27 million from defaulters, Deputy CEO Victor Azumah said at a press conference in Accra on 9 April.

The GH¢27 million represents approximately 30 percent of the total amount in default, implying roughly GH¢90 million still outstanding.

Employers who deduct contributions from employee earnings and fail to remit them face a 3 percent surcharge on outstanding balances.

Under the Pensions Act, penalties include fines of up to 2,000 penalty units, payment of all outstanding defaults, imprisonment of up to two years, or a combination. The NPRA has trained more than 40 prosecutors across the country to handle the caseload.

Total pension funds under management now exceed GH¢100 billion. Informal sector contributions sit at GH¢1.2 billion, or 16 percent of total contributions, a figure the NPRA described as inadequate.

The Authority said it is developing new guidelines to diversify pension fund investments and is engaging the government over outstanding arrears owed to SSNIT.

A review of the offshore investment ban, imposed two years ago to stabilise the cedi, is also under consideration.

For context: the NPRA recovered GH¢11 million in 2022 and GH¢14 million in 2023. The GH¢27 million marks a step-up in enforcement scale.

Azumah said the priority is compliance, not punishment, but that prosecution will continue where violations persist.