Micro pension scheme most appropriate for the informal sector – NPRA

The National Pensions Regulatory Authority (NPRA) says the micro pension scheme is the most appropriate for the nature of the country’s informal sector.

Speaking at the National Pensions Awareness Week held in Kumasi, CEO of the Authority, Hayford Attah Krufi said the informal sector of Africa’s economy would thrive through small scale pension, personal pension and group personal pension schemes.

“We in Ghana, especially in the informality of the nature of how we work, the best way to approach pensions is through associations, cooperatives, unions and individual,” he explained.

Mr Attah Krufi noted the need to eliminate old-age poverty in the informal sector, constituting about 85% of the population.

According to him, the authority is working around the clock to raise informal pensions from a low level of 3% penetration to 40% penetration in the next five years.

The Pension Awareness Week celebration is the country’s maiden week-long programme which was scheduled to take place from October 25 to 29, under the theme, “Total Participation in Pensions to ensure Retirement Income Security”.

The awareness week was targeted at associations of traders, drivers, tailors and dressmakers, hairdressers and beauticians, vulcanisers, woodworkers and the Trades Union Congress (TUC) and to deepen, educate and sensitize Ghanaians on the tier-three pensions in relation to the informal sector.

Employment Minister, Ignatius Baffour-Awuah indicated that pension schemes had become necessary in the development of the country’s economy.

He discredited the idea that pension plans were for only employees in the formal sector and implored employees to demand information about their contributions towards pensions.

President Akufo-Addo on December 1, 2020 inaugurated the Cocoa Farmer’s Pension Scheme which will see over 1.5 million cocoa farmers in the country contributing to a pension scheme which will guarantee retirement benefits.

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