The National Pensions Regulatory Authority has announced a major enforcement drive targeting employers who deduct pension contributions from workers’ salaries but fail to remit the mandatory Tier 2 funds, warning that offenders will face prosecution.
Deputy Chief Executive Officer of the Authority, Victor Azumah, said the move is part of intensified efforts to safeguard the retirement benefits of workers and restore confidence in Ghana’s pension system.
“Employers who deduct pension contributions from their employees and fail to remit them are committing an offence and violating the rights of those employees,” he stated.
Mr Azumah revealed that the Authority has strengthened its legal and enforcement framework to address persistent non-compliance. As part of this effort, more than 40 prosecutors have been trained nationwide to support the prosecution of defaulting employers.
The initiative, he explained, forms part of a broader strategy to ensure full compliance with Ghana’s three-tier pension scheme, particularly the occupational Tier 2 component, which is privately managed but regulated by the NPRA.
Under the pension framework, employers are required not only to deduct contributions but also to ensure their timely remittance to licensed pension fund managers. Failure to do so, the Authority noted, undermines workers’ financial security and weakens the integrity of the pension system.
Mr Azumah further emphasized the need for employers to properly register all employees with approved trustees and pension schemes.
“We are urging all employers to register their workers and ensure that Tier 2 contributions are paid as required by law,” he added.
The NPRA warned that sanctions will be strictly enforced against non-compliant employers. In addition to prosecution, defaulters’ risk financial penalties, including surcharges on outstanding payments.
“No employer should default in payment without proper communication. Any employer who does so will be surcharged a penalty of three percent of the amount in default,” Mr Azumah cautioned.
He added that continued non-compliance could result in further legal action, including court proceedings and recovery measures to retrieve unpaid contributions.
The Authority noted that the enforcement drive is critical to protecting the long-term welfare of workers, many of whom depend on their pensions as a primary source of income after retirement.
It also encouraged employees to regularly review their pension statements and report any discrepancies, amid concerns that some workers remain unaware that their contributions have not been properly remitted.
Mr Azumah reiterated that while the Authority prioritises voluntary compliance, it will not hesitate to apply the law where necessary.
“Our priority is to ensure that employers comply with the law, but we will not hesitate to prosecute where violations persist,” he stressed.
The latest warning signals a tougher regulatory stance aimed at promoting transparency, accountability, and fairness within Ghana’s pension system.
