IMANI accuses NPRA of shortchanging Ghanaian workers

The authority has for the past two years been ‘deducting and managing’ five percent of workers’ salaries but IMANI President, Franklin Cudjoe said the NPRA had no business keeping part of workers salaries.

Contributing to discussions on Joy FM’s Super Morning Show Monday, Mr Cudjoe said about GHS 557million had been deducted from workers salaries for over two years now and being kept in a fund, contrary to the law.

He stated that the NPRA had no right to manage a pensions fund on behalf of workers. “That temporary fund was an illegality according to the Pensions’ Act,” Franklin stressed.

He explained that under the new Act - which seeks to create a unified pension system under a three tiered pension structure - SSNIT was the operator of the First Tier, whilst Approved Trustees (Corporate Trustees) will be operators of the mandatory Tier 2 and Voluntary Tier 3 schemes.

He could therefore not fathom why the NPRA, instead of sticking to its major mandate of licensing occupational pension schemes to work directly with contributors, were directly handling contributions.

Franklin was of the strong conviction that the Authority, by this act, was shortchanging Ghanaians.

He explained that section 2(1,8) of the Pensions Act provided that temporary pensions fund accounts should be opened with the Bank of Ghana.

“From the commencement of this Act and before the licensing or registration of trustees, pension fund managers and custodians, every employer to whom this Act applies shall open a temporary occupational fund account with the Bank of Ghana.

“Subject to section 3 (1,2 and 3) of this Act, five per centum remittance of the second tier mandatory occupational pension scheme on behalf of employees shall be launched with the Bank of Ghana…Every employer shall maintain proper books.

“The board shall within 90 days of licensing or registering of trustees, pension fund managers and custodians compute and transfer all contributions and returns to the credit of the occupational pension fund account opened with the chosen trustee licensed by the board,” he quoted.

Dr Bediako emphasised: “So the amount being collected is a legal collection.”

He added that SSNIT was asked to collect the whole amount (18%) and deduct five percent into the temporary accounts at the Bank of Ghana until trustees had been established.

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