Released Funds To Pension Fund Account Not Enough

Some financial analysts have described as minimal the GHc545,950,332.73 released for the Temporary Pension Fund Account (TPFA). The National Pensions Regulatory Authority (NPRA) last week announced that GHc545,950,332.73 has so far been released by government for onward distribution to contributors.

The fund which had been locked up from September 2016 to April 2017 has led to many agitations especially from public sector pensioners. Speaking to Citi Business News on the matter, Pension Consultant, Andrews Agblobi said government should be strategic in releasing more funds and in a timely manner.

“They have a lot to release, so far I will say they haven’t released that much because for the public sector none has been released yet when it comes to the TPFA so there is a lot to be released, it is true they cannot do so at once so as not to cause any shock to the economy but they can do so in a more timely manner,” Mr. Agblobi said.

As of June 2016, the NPRA had about GHc2.9 billion of TPFA to be released, with the continuous delay of the release of the funds, leading to the slow growth of some investment portfolios. Commenting on the issue, Mr. Agblobi said more attention should be given to the public sector so as to facilitate the quick release of their funds for the benefit of the contributors.

“If you compare how much is in the TPFA there is close to over two billion that TPFA might have activated so there is a lot to be released, as we go ahead like I said the four major public sector schemes have not been released yet so roughly the number of employees that are involved for this release is roughly about two hundred and fifty thousand so you can see that we have a lot more to go. This has also led to delay in returns on investments,” he said.

Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.