The informal economy sector in Ghana is considered to be the largest economy employing about 80-85% of the Ghanaian workforce.
However, their participation in a formal pension scheme arrangement is very limited causing most of them to live below the poverty line in their old age due to unplanned retirement for themselves.
It is in light of this that the National Pensioners Regulatory Authority (NPRA) as part of its nationwide sensitization program has held a sensitization forum for informal sector workers in Cape Coast.
The forum was to create awareness among all persons within the informal sector on the introduction of the 3-tier Pension Scheme established by the National Pensions Act, 2008 (Act 766) which makes provision for a formal pension scheme for workers in the informal sector to ensure retirement income security at their old age.
Speaking at the program, the Chief Executive Officer for the NPRA, Hayford Atta Krufi indicated that the sensitization forum was to erase the long-existing misconception that pension contributions are for only formal sector workers.
“You know, we have the tier three pension scheme for the informal sector, but because the perception has always been that pension is only for the formal sector, that perception has really grown. And therefore, our engagement today has given us the opportunity to sensitize the people from the informal sector that pension is also available for them during the time that they are in productive employment” he said.
To him, an interaction like that gives the authority the opportunity to address the concerns of workers to enable them to have confidence in the assurance to continue to do the contribution.
He noted that for about 57 years, pensions have existed in Ghana but had no regulator and the opportunity to educate and sensitize people.
Mr. Krufi is therefore of the view that the NPRA has been in existence since 2010 “and therefore we have a catch-up.”
“The New Pensions Act has also opened up the opportunities for people who are in the informal sector to join the pension scheme, so that perception that pension is only for the formal sector is what we need to work against” he continued.
Mr. Hayford, therefore, appealed to the informal sector workers between 15 years and the retirement age of 60 in Ghana to subscribe to the scheme to guarantee their retirement income security.
“So, as I say, you save for the rainy day when you retire and you don’t have the energy and the strength to work and you don’t earn any income, this is what you’re going to fall on.”
The retirement age in Ghana is 60 years in accordance with the National Pensions Act, 2008 (Act 766), as amended by the National Pensions (Amendment) Act, 2014 (Act 883).
The Director of Standards and Compliance at the National PensionersRegulatory Authority, John Mbroh also spoke with the media at the sideline of the forum and said individuals who contribute as less as GHS 100 still have returns on their monies which when accumulated may give them substantial amounts of money to rely on in their retirement age.
He, therefore, emphasized that it is important for each individual including those in the informal sector sign on to the scheme.
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Source: Eric Sekyi/ATLFMNEWS
