Chief Executive of the National Pensions Regulatory Authority (NPRA), Hayford Atta Krufi, has expressed his support for the proposals to raise contributions to the Social Security and National Insurance Trust (SSNIT) tier one scheme.

These proposals have been put forth by SSNIT and various stakeholders within the pensions industry, with the aim of ensuring the sustainability of the scheme.

A recent actuarial report has highlighted that Ghana's pension system could face significant challenges in the next decade if steps are not taken to reassess the contribution rates.

Mr. Krufi emphasized that any decision regarding contribution adjustments would rely on recommendations from various participants within the industry.

He made these remarks during an appearance on PM Express Business Edition with host George Wiafe.

“We should realize that government employers as well as the various union will be the ones making the payment and their view is very important”, he said.

He further mentioned that discussions are presently underway to determine whether there should be an increase in SSNIT contributions or not.

Additionally, Mr. Krufi revealed that the NPRA is actively engaged in the process of revising the investment guidelines applicable to SSNIT. This is part of broader efforts to lower the operational costs associated with SSNIT.

Regarding the calls for a review of the current retirement age, which is set at 60 years, Mr. Krufi explained that any decision in this regard would need to align with the constitution. Amending the law on retirement age would require the involvement of both the government and parliament.

“This has to do more with the country’s constitution. Discussions may start now with Parliamentarians in terms of role they can play, when it comes to the review of the pension”, he said.

The new National Pension Scheme was instituted by the National Pensions Act, Act 766 which ensures that every Ghanaian worker receives retirement benefits as and when due.

The Act 766 which was passed on December 12th, 2008 mandated the establishment of a new contributory Three-Tier Pension Scheme with the National Pensions Regulatory Authority (NPRA) to oversee the efficient administration of the composite pension scheme

The New Pension Scheme was launched on 16th September, 2009 and its implementation started in January 2010.

The First Tier is the Basic National Social Security Scheme for all workers in Ghana. It is a defined benefit scheme and mandatory for workers to have 13.5% contributions made on their behalf. The contribution is managed by SSNIT.

The Second Tier is a defined contributory Occupational Pension Scheme mandatory for workers with 5% contribution made on behalf of members. The contribution is managed privately by approved Trustees.

The Third Tier, which includes all Provident Funds and all other Pension Funds outside Tiers I and II is a voluntary scheme.