Govt defaults on paying pension contributions for public sector workers

Government has defaulted in 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, 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, goverment has also defaulted in the payment of the 5 percent Tier 2 pensions of the workers as well.

However, some payment was made in March 2023. But, that amount to 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 Regultaory Authority (NPRA_ has assured of continued negotiation with Government on the payment of outstanding contributions and timely payment of subsequent contributions to address this issue.

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

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

Source: Ghana Business