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Govt defaults on paying pension contributions for public sector workers

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The government has defaulted on the payment of pension contributions for public sector workers.

The period of default spans from October 2022 to May 2023.

In the report, it emerged that the government has not only failed in its obligations to settle the 13 percent Tier 1 pension contributions of the public sector employees for the period, but, between October 2022 and May 2023, the government has also defaulted in the payment of the 5 percent Tier 2 pensions of the workers as well.

However, some payments were made in March 2023. But that amount is just to cover the period up to September 2022.

This suggests that the default by the government has become a major challenge.

Meanwhile, the National Pensions Regulatory Authority (NPRA) has assured continued negotiation with the government on the payment of outstanding contributions and the timely payment of subsequent contributions to address this issue.

Interestingly, the Authority prosecuted defaulting employers for Tier 2 pension contributions.

As at March 2023, a recovery in excess of GH₵15 million was realized from 89 defaulting employers.