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Business News of Wednesday, 22 June 2016

Source: GNA

NPRA Pension funds secured - Consultant

Russell Gallur, Consultant to the National Pensions Regulatory Commission (NPRA), on Wednesday stated that he could guarantee the security of cash lodgments made to the Authority.

He said legislations, regulatory, supervisory and administrative processes had the check and balances that made the Authority trusty.

Mr Gallur who is attached to the NPRA, under a Swish Government, three-year technical assistant project, made the remark at an outreach programme on the 3-tier Pension Scheme for the Informal Sector Workers in the Volta Region in Ho.

He said the project is beefing up the technical capacities of staff and helping to increase public awareness about the current opportunities under Ghana’s three tier pension regime, which ropes in workers in the informal sector.

Elvis Van Lare, Regional Secretary of the Trades Union Congress, said the income saved with the scheme, would be support for informal sector workers.

Emmanuel Dagbanu, Corporate Affairs Manager, NPRA, said the scheme for the informal sector is not being operated as ‘susu’ or micro finance, and that entitlements are sure to be paid as the Social Security and National Insurance Trust would pay its members.

He said the 3-Tier Pension Scheme for informal sector workers had two accounts, retirement and personal savings.

Mr Dagbanu said moneys into the Retirement Account would be redeemed at old age in the form of monthly stipends, while those in the personal capital savings could be assessed in times of need for recapitalisation of businesses among others.

He said interest rates were not calculated below Treasury bill rates and urged informal sector workers to endevour to join the scheme, on voluntary basis.

He said it is crucial for their future support.

Mr Dagbanu urged informal sector workers and all other workers to refrain from spending on frivolities and be within their budgets.

He said the NPRA is monitoring and keeping sanctions system in place that should keep trustees and banks holding contributions and deductions on track.

During an open forum, Lawrence Attitoe, Representing the Progressive Transport Owners Association said statistics indicate the increasing numbers of informal sector workers joining the scheme since becoming operational would have encouraged others to join.

Michael Nunekpeku, an Electronic Technician expressed fears that administrative processes that results in aged pensioners having to visit offices to regularise their payments could deter some people from joining the scheme.

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