The National Pensions Act, 2008 (Act 766) and Challenges of Pension Fund Administration in Ghana

Abstract

The recent reformation in Ghana’s pensions space introduced the three-tier pension scheme underpinned by the National Pensions Act, 2008 (Act766) under the regulatory authority of the NPRA. Seeking to redress inherent challenges, the transformational shift effected by the former yielded the incorporation of private sector through inclusion of approved corporate trustees, fund managers, fund custodians and other service providers. However, despite the new scheme’s attenuation of key lapses and challenges of the previous regime, there still exist predicaments that are reflective of the later. By employing secondary and other forms of empirical data, this research explores significant shortfalls observed in the management of various schemes (DB and DC) intertwined with sections of the Act 766 that require reconsideration. The upshot of this research reveals the retarded performance of the Defined Benefit Scheme as opposed to the stupendous attainments of the Defined Contributory Scheme. Findings pertaining to inadequate coverage of schemes, perceived bureaucracy, payment of benefits, monthly remittances, and defaulted employers as well as exclusions from the three-tier pension scheme, suggest that extra work must be embarked on to make pension delivery effective and efficient. The paper therefore proposes rudimentary review of certain controversial provisions under the Act 766 coupled with strict adherence to various guidelines pertaining to the regulatory and administrative functions of stakeholders.