The National Pensions Regulatory Authority (NPRA), has reduced its exorbitant informal sector scheme registration fees from GHC5,000.00 to GHC1,000.00 to attract and encourage high participation of corporate trustees in the industry to maximise the coverage of persons in the informal sector.

The Authority has also reduced the fees for individual trustees in the informal sector licensing from GH?5,000 to GH?500.00 to increase trustee turnover for schemes, which would lead to good governance within the pensions space. These discrepancies came up following the discovery of 85% of the working force being at the informal sector.

This announcement was made in a familiarisation engagement with industry players at the Coconut Grove hotel when the NPRA team introduced their new Chief Executive Officer, Mr. Hayford Attah Krufi to folks from the pension business communities to review the Authority’s policy guidelines and streamline initiatives to collectively ensure transparency to build a healthy pension scheme in the country.

Mr. Hayford indicated that the guidelines on registration and participation of expatriate workers, has been issued by the Authority and is expected to guide employers and foreign workers in their participation in the three-tier pension scheme.

He added that the “NPRA will continue to collaborate and dialogue with its major stakeholders, towards the growth and sustainability of the pensions industry in Ghana, to ensure retirement income security.”

He further explained; “The industry is young as compared to other jurisdiction and we cannot grow without the support and collaboration with you the stakeholders,” he noted.

The tier three scheme he said: “Continuous efforts have been made to improve the engagements with industry players in the management and effective administration of the schemes.”

He continued that, market discipline should be part of all of us in the industry as part of our strategic plan and focus of ensuring discipline, the NPRA in compliance with National Pensions Act,2008(Act,766) as amended and the occupational and personal pension regulations 2011(LI 1990), will provide innovative and creative platforms necessary to put measures to ensure that service providers in the industry have the requisite knowledge and understanding for an effective administration.

He reiterated that, as “We are well aware with the coming into force of the National Pensions Act,2008(Act,766) as amended it was stated in section 213(1) that the CAP 30 and related parallel schemes shall cease to be in force and be unified under the tier three pension scheme within five years.”

Samuel Bediako Waterberg, CEO of People’s Pension Trust (PPT), who is already running an informal pensions scheme in an interview with the B&FT said: “The reduction in the informal sector registration fee is a laudable one to attract more of corporate trustees to sign up to help cover up the higher number of the working force within the informal sector.”

He said: “Although dealing with the informal sector is not an easy task to handle but with time and conscious effort people will be interested to join the scheme.”