The National Pensions Regulatory Authority (NPRA) has revealed that more than 100 employers have been prosecuted for failing to remit pension contributions, as it intensifies enforcement efforts to protect workers’ retirement funds.

The Authority says it has recovered over GH¢27 million from defaulting employers and has warned of tougher sanctions in the months ahead.

Speaking at a news conference in Accra, NPRA's Deputy Chief Executive Officer, Victor Azumah disclosed that total pension funds under management have now exceeded GH¢100 billion.

However, he expressed concern over the low participation of the informal sector, describing current contribution levels as inadequate. Figures show that the sector has contributed GH¢1.2 billion, representing just 16 percent of total contributions.

A number of factors account for the lack of interest by the informal sector. One is trust. We all saw what happened within the economy, particularly with microfinance institutions and how businesses collapsed, so there is a lack of trust in the system, he said.

He added that irregular income patterns among informal workers also affect their ability to contribute.

The issue is also efficiency in engaging these informal workers. They do not earn regular income, and that has affected contributions from the sector.

The NPRA also highlighted persistent non-compliance among private employers, noting that some continue to default despite deductions being made from employees’ salaries.

Reports from trustees of registered schemes indicate that some employers have refused to pay contributions of their staff despite having deducted these amounts from their earnings, Azumah stated.

Some have not even registered schemes for their staff for the payment of mandatory Tier Two deductions. These violations of workers’ rights must not be condoned.

He cautioned employers to comply immediately or face legal action.

The Authority is therefore cautioning all employers to register Tier Two schemes and pay mandatory contributions as a matter of urgency. They should desist from these acts or face prosecution.

According to him, the NPRA has stepped up compliance measures in recent years.

In 2025, the Authority deployed compliance officers to inspect the books of employers to enforce payments. Through this exercise, a number of recalcitrant employers have been prosecuted, and over GH¢27 million—about 30 percent of the defaulted amount—has been retrieved.

Looking ahead, the NPRA says it is preparing new guidelines to diversify pension fund investments, while also engaging government over outstanding arrears owed to the (SSNIT).

The Authority is engaging government to honour its obligations to workers, Azumah noted.

Meanwhile, the NPRA is reviewing its policy on offshore investments of pension funds. A ban imposed two years ago to stabilise the cedi may soon be reconsidered.

It is being looked at under a number of factors to determine whether it is time to lift the ban on offshore investments, he said. For purposes of diversification, it is something we need to consider, although some of these investments have not performed as expected.

Source: 3news