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Business News of Monday, 30 September 2019


Private pensions transfer enters final stage

Pension Fund Assets data from 2014-2018 Pension Fund Assets data from 2014-2018

The transfer of pension contributions from the Temporary Pension Fund Account (TPFA) held in the Bank of Ghana to duly licensed privately managed pension schemes is currently in its final stages.

The funds outstanding comprise contributions entirely from public sector workers.

Currently, data relating to the funds in the TPFA is being finalized for them to be transferred to the five designated schemes for public sector workers. This follows the full transfer of funds formerly held in the TPFA up until August 2016, in the consolidated fund of the Bank of Ghana.

This has been revealed by the Chief Executive Officer of the National Pension Regulatory Authority (NPRA), Hayford Attah Krufi.

Mr. Krufi said, “we are in the closing stages of transferring the data to the five public sector schemes as well as individual membership statements.”

As part of the transitional arrangements for the smooth take off of the 3-Tier Pension Scheme in accordance with section 218 of Act 766 as amended, an account was opened at BoG to temporarily receive the 2nd –Tier Mandatory contributions of workers pending the licensing and registration of service providers.

Once the ongoing stage gets completed, every public sector worker would know their contributions from January 1, 2010 to date.

He noted that in December 2018, funds to the tune of GHc 3 billion were transferred to the five schemes for public sector employees.

In December 2018, the Authority transferred GHc3.1 billion, of outstanding funds for over seven years in the TPFA into the custodial accounts of the registered Public Sector Schemes.

These funds were accrued contributions of 2nd Tier funds of public sector workers who draw their salaries from the Controller and Accountant Generals’ Department payroll.

In view of this development in the sector, there has been substantial growth in the value of the pension funds by the close of 2018.

The total pension funds had increased steadily from GHc 10,008 million in 2014 to GHc 22,277 million in 2018.

Of the GHc 22, 277 million, about GHc 1,000 million of the funds were in assets under management for the private sector, which make up the Tiers 2 and 3. About GHc 9,100 million were funds under the Tier 1, which the Social Security and National Insurance Trust (SSNIT) pension scheme.