Pension funds remain safe despite financial sector clean-up – NPRA

The National Pensions Regulatory Authority, NPRA, says it is enforcing the rules on how to invest pension funds to protect workers’ funds.

Following the financial sector clean-up undertaken by the Bank of Ghana, some financial observers warned that the situation could have a spillover effect in the pensions sector if pension funds were invested in short term instruments.

But speaking to Citi Business News, the Director in charge of Planning, Research, Monitoring and Evaluation at the NPRA, Ernest Amartey-Vondee, said the regulator took steps to protect all pension funds, hence no money was lost to any of the banks that collapsed.

“If anybody wants to invest pension funds into any asset or a bank, there must a thorough evaluation of that investment. Pension funds cannot be lost. The safety of pension funds is paramount”

Amartey-Vondee explained that the regulator tracks all funds in the sector and makes sure the risk level of pension funds are within the reasonable band.

“Pension funds are monies that belong to workers when they retire. So the manner in which they are used is highly regulated and monitored,” he stressed.

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