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Business News of Sunday, 5 May 2019

Source: citibusinessnews.com

Pensions regulator to ensure about 11m informal sector workers have pension schemes - CEO

The National Pensions Regulatory Authority (NPRA) has said that it is working on new policies to ensure that the more than 10 million workers in the informal sector are able to access a pension scheme.

The current three-tier pension system does not favour the informal sector in that most workers do not have a regular source income like salaries which is a major factor that inhibits their contribution to a pension scheme.

Thus, workers in the informal sector and their respective households are always in danger of not saving towards pensions throughout their productive lives.

But with initiatives such as micro pensions, which is a relatively new concept, informal sector workers can easily access pension schemes where they can make their contributions via mobile money among other benefits.

In an interview with Citi Business News, Chief Executive Officer of the National Pensions Regulatory Authority, Hayford Atta Krufi said the Authority is currently working on a pension scheme for cocoa farmers which will be replicated for other identifiable occupational groups in the informal sector.

“About 11 million people who work in the informal sector are not on any pension scheme and out of that number 5 million are farmers and fishermen.

The NPRA with support from the World Bank is finalizing processes for the completion of a pension scheme for cocoa farmers. After its full implementation, the same will be done for other associations such as traders, spare part dealers and so on”.

Mr. Atta Krufi went on to acknowledge the efforts of some companies providing micro-pension schemes and assured of their strict regulation.

“In Ghana, there are 261 occupational pension schemes which are strictly monitored and managed by 11 banks which serve as custodians.

“I can assure people out there that their pensions will be kept safe because they are safely invested,” the CEO said.