THE National Pensions Regulatory Authority (NPRA) has warned employers who fail to deduct and remit their workers’ pension contributions, particularly Tier Two, to desist from the practice.
According to the Authority, the practice was a grave violation of the Pensions Act, 2008 (Act 766), threatens workers’ retirement security, and undermines confidence in the pension system.
The Deputy Chief Executive Officer of NPRA, Victor Azuma Mejida, who gave the warning during a media engagement on the Authority’s activities in Accra yesterday, said some employers had persistently defaulted in paying Tier Two contributions despite making deductions from employees’ earnings.
He said the non-payment of workers’ pension contributions constitutes an offence under Section 83 of the National Pensions Act, 2008 (Act 766), and offenders would face prosecution.
“Failure or refusal to pay these contributions spells doom for the worker. Some employers deduct these monies and fail to remit them, while others have not even registered schemes for their staff. This must not be condoned,” he cautioned.
He noted that pension contributions form the backbone of retirement income for workers, and any default could have serious long-term consequences for beneficiaries.
Mr Mejida disclosed that in 2025, the NPRA intensified its compliance and enforcement measures by deploying officers across the country to inspect employers’ records and ensure adherence to pension regulations.
He said the exercise led to the prosecution of several recalcitrant employers and the recovery of over GH¢27 million, representing about 30 per cent of outstanding contributions.
According to him, the Authority had adopted multiple strategies to retrieve the funds, including the issuance of demand notices, court-supervised payment plans, continuous monitoring of defaulting employers, and escalation of cases for legal enforcement.
He further revealed that more than 40 prosecutors have been trained to strengthen the Authority’s capacity to pursue defaulters and ensure compliance.
Mr Mejida warned that defaulting employers would be surcharged a three per cent monthly compounded penalty on unpaid contributions, in addition to possible legal sanctions.
He therefore urged all employers to regularise their pension obligations and fully comply with the law to protect workers’ rights.
Touching on broader reforms, Mr Mejida announced that the NPRA is set to introduce a digital pension platform aimed at expanding coverage, particularly within the informal sector.
He explained that the platform would make it easier for workers to enrol in pension schemes and contribute conveniently, addressing barriers such as accessibility and lack of information.
Currently, he said, only about 1.2 million informal sector workers, representing 16 per cent, are enrolled in pension schemes, a situation he described as inadequate.
To address this, the Authority has developed a policy framework to introduce a special pension scheme tailored to the needs of informal sector workers, with incentives to encourage participation.
In addition, Mr Mejida said the NPRA was expanding its operations nationwide to improve accessibility, noting that it currently has offices in nine regions, with plans to cover the remaining regions in the coming years.
He also announced that Ghana had been appointed to the Executive Committee of the International Organisation of Pension Supervisors, a development reflecting the country’s growing influence in pension regulation.
Mr Mejida said Ghana had also secured the hosting rights for the 2026 African Pension Supervisors Association Conference.
He reiterated the Authority’s commitment to protecting workers’ pensions and called on the media to support public education and help expose non-compliant employers.
BY KINGSLEY ASARE
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