The National Pensions Regulatory Authority (NPRA) has initiated measures to encourage high participation of Corporate Trustees to maximize the coverage of persons in the informal sector.
The incentives include the reduction of some licensing fees and the waving off of others to increase funds available to trustees.
Among the licenses reduced include; individual Trustee Informal Sector Licensing fee which has been slashed from five thousand to five hundred cedis.
Also, the Informal Sector Scheme Registration Fee has been reduced from five thousand to one thousand Ghana cedis.
In addition, the NPRA has waived the 0.33% fees on Net Asset Value for two years to be distributed as follows: Trustee fee 1.49%, Reduction in total fees 2.33%.
According to the NPRA, the rationale is to make more funds available for Trustees by increasing their fees and also match up contributions of members by reducing the total fees from 2.5% to 2.33%.
Meanwhile, the Pension Fund Managers and Custodians fees have been fixed at non- negotiable fees of 0.56% and 0.28%.
The rational of this is to enable them to have enough funds to effectively perform their assigned roles to ensure prudent management funds.
According to the regulator most insurance companies focus on the fifteen percent formal sector workers to the neglect of the eight five percent in the informal sector.
Speaking to Citi Business News on the issue, Chief Executive Officer of the National Pensions Regulatory Authority, Hayford Attah Krufi said he is optimistic the introduction of the incentives would increase the number of informal workers currently on pension schemes.
“The incentives is geared towards the industry players to help them move towards the eighty five percent of the people in the informal sector but most of the people here today are those targeting the fifteen percent in the formal sector,” Mr. Attah Krufi said.
He added“…for us as NPRA one of our core mandates is to educate and sensitize people to understand that the pension is not only for persons in the formal sector but also the informal sector so we continue to engage them and do a lot of outreach education.”
Hayford Attah Krufi made these comments at the sidelines of a meeting the stake holders in the pension sector.
By: Anita Arthur/citibusinessnews.com/Ghana