The National Pension Regulatory Authority “NPRA”, in the Western region held its routine sensitization exercise with Human Resource practitioners, heads of institutions, and Informal Sector Workers on the need for 1st, 2nd Tier, and 3rd Tier Pension Schemes.

The 1st and 2nd Tier Schemes are said to be mandatory for Formal sector workers and voluntary for Informal sector workers.

The formal Sector Workers section of the exercise was held on 25, May 2022.

Pension contributors benefit from monthly pension payments on retirement, invalidity and survivors benefits, and Tax exemption on contributions.

According to the Zonal Head of NPRA for Western, Central, and Western North Regions, Mr. Stanley Ogoe, the essence of today’s exercise was to let stakeholders including Employees, employers, and the public abreast themselves with the three-tier pension scheme.

He stated that as part of “NPRA” stakeholder engagement they needed to bring the stakeholders to enlighten them on the three-tier scheme and seek their views.

Mr. Stanley Ogoe advises both employees and employers to take advantage of 16.5% is tax-free to invest in it for the future.

The Zonal Head said 16.5% tax-free is the most secured virtual for investment as Employees and employers can’t get any better than that.

He indicated that it is always best for contributors to engage their trustees on pension issues.

Mr. Ogoe emphasized that the law mandates the employees to take the 5.5% from the employer’s salary to be given to a trustee to invest it for them.

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Meanwhile, employees must not adhere to employers’ claims not to deduct an amount from their salaries because if employees listen to the voice of the employers for non-deduction and gives them the money to go home with it.

Furthermore, in the future, the employers will turn around to claim their pension contribution from the employees, if a case is reported to NPRA, enforcement of the law would be applied, as a means of the employee paying twice the pension contributions to the employer.

Moreover, employees were therefore urged to ensure that their employer pays their monthly pension contributions regularly.

On 26, May 2022, the National Pensions Regulatory Authority in its second section exercise equipped the Informal Sector Workers to know about the three-tier pension scheme.

Informal Sector Workers include Hairdressers, Tailors, Traditional Caterers and Medicine practitioners, photographers, and barbers among others that fall under the Association of Small Scale Industries (ASSI).

The exercise organized by the National Pensions Regulatory Authority in the Western region was also to enlighten the Informal Sector Workers on the need for them to engage in the Tier 3 scheme and seek their views.

The Informal Sector Workers leaders who participated in today’s exercise were made that the Tier 3 Pension Scheme has no age limit, unlike Tier 1 and 2 which have an age limit of 60 years before a contributor can enjoy his contributions.

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On his side, the Sekondi-Takoradi chairman for ASSOCIATION OF SMALL SCALE INDUSTRIES (ASSI), Mr. Krampah Asante, speaking to Kantanka Akwansosem urged his members to take advantage of the Tier 3 Pension Scheme as being explained to them by National Pensions Regulatory Authority.

 

Filed By: Benjamin Bray (Katanka TV W/R Correspondent)