NPRA prosecutes over 100 employers, recovers GHC27m in pension defaults
The The National Pensions Regulatory Authority (NPRA) reports that over 100 employers have faced prosecution for failing to remit pension contributions, as part of its efforts to safeguard workers’ retirement funds.
The Authority states it has recovered more than GH¢27 million from defaulters and warns of stricter penalties ahead.
During a press conference in Accra, NPRA’s Deputy CEO, Victor Azumah, revealed that total pension assets now surpass GH¢100 billion. He expressed concern about the low participation of the informal sector, noting that contributions amount to only GH¢1.2 billion, or 16% of total contributions.
“Several factors contribute to the informal sector’s lack of interest,” he explained, citing trust issues stemming from recent economic crises and microfinance sector failures.
Additionally, irregular income patterns among informal workers hinder their ability to contribute regularly. “Engagement efficiency is also a challenge, as these workers often do not earn fixed incomes,” Azumah added.
The NPRA also pointed out ongoing non-compliance among private employers, with some refusing to pay contributions despite deductions from employees’ salaries. “Reports indicate that some employers neglect to remit or even register schemes for mandatory Tier Two deductions,” Azumah noted, emphasizing that such violations must be addressed.
The Authority has intensified its enforcement, deploying compliance officers in 2025 to inspect employer records, resulting in prosecutions and the recovery of GH¢27 million, about 30% of total defaults. Looking forward, NPRA is preparing new guidelines to diversify pension investments and is engaging with the government over unpaid arrears to SSNIT. “The Authority is urging the government to fulfill its obligations to workers,” Azumah stated.
The NPRA is also reviewing its offshore investment policy, considering whether to lift the two-year-old ban on offshore investments to diversify funds, despite some investments not meeting expectations, he explained. (NPRA) reports that over 100 employers have faced prosecution for failing to remit pension contributions, as part of its efforts to safeguard workers’ retirement funds.
The Authority states it has recovered more than GH¢27 million from defaulters and warns of stricter penalties ahead. During a press conference in Accra, NPRA’s Deputy CEO, Victor Azumah, revealed that total pension assets now surpass GH¢100 billion. He expressed concern about the low participation of the informal sector, noting that contributions amount to only GH¢1.2 billion, or 16% of total contributions. “Several factors contribute to the informal sector’s lack of interest,” he explained, citing trust issues stemming from recent economic crises and microfinance sector failures.
Additionally, irregular income patterns among informal workers hinder their ability to contribute regularly. “Engagement efficiency is also a challenge, as these workers often do not earn fixed incomes,” Azumah added.
The NPRA also pointed out ongoing non-compliance among private employers, with some refusing to pay contributions despite deductions from employees’ salaries. “Reports indicate that some employers neglect to remit or even register schemes for mandatory Tier Two deductions,” Azumah noted, emphasizing that such violations must be addressed.
The Authority has intensified its enforcement, deploying compliance officers in 2025 to inspect employer records, resulting in prosecutions and the recovery of GH¢27 million, about 30% of total defaults.
Looking forward, NPRA is preparing new guidelines to diversify pension investments and is engaging with the government over unpaid arrears to SSNIT. “The Authority is urging the government to fulfill its obligations to workers,” Azumah stated.
The NPRA is also reviewing its offshore investment policy, considering whether to lift the two-year-old ban on offshore investments to diversify funds, despite some investments not meeting expectations, he explained.
