Ghana Pensions Fund BOG fails to release GHC2.9b pension funds

The amount is made up of contributions from employers and their employees under the tier-two pension scheme as well as interests accrued from previous investments.

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National Pensions Regulatory Authority play

National Pensions Regulatory Authority

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Bank of Ghana has failed to transfer temporary pension funds to private trustees as the Ghana Pensions (Amendment)  Act 883  dictates.

The National Pensions Regulatory Authority puts the total amount of money in the Temporary Pensions fund account of  the Bank of Ghana at GHC 2.9 billion. This represents an increase of 300% over  2012’s GHC756.9 million.

The amount is made up of contributions from employers and their employees under the tier-two pension scheme as well as interests accrued from previous investments.

READ MORE:Ghana Pensions Act Low number of Informal sector pension contributors alarming

An anonymous senior executive at the NPRA who spoke to Graphic Business said the Bank of Ghana has been unable to transfer the funds to respective trustees of companies because the trustees are not certified. The NPRA has therefore not been able to issue the order for transfer.

Though the funds are safe, some of the Fund Managers are complaining about effects the delays are having on their business.

Mr. Emmanuel Alex Asiedu, Managing Director, STANLIB Ghana Limited, one of the fund managers said the continuous payment of pension funds into the TPFA, where they  are mostly invested in treasury bills, deprives the capital market of the needed cash to grow.

"To be honest, we would have wanted all the funds to be released but looking at it now, I would want to see it from the point of the glass being half full than half empty. I think the regulator has done its bit by encouraging companies to get schemes but since that has not happened, the authority obviously cannot transfer the funds," he explained.

“If the money comes, majority of it will be invested in government bonds and that will create captive debt for the government. The effect is that liquidity would improve and the entire financial sector will benefit,” Mr Asiedu told Graphic Business.