NPRA’s Tier 3 for the informal sector UER

The National Pensions Regulatory Authority NPRA, has organized a sensitization forum, for the informal sector, on the third tier pension’s scheme at the Bolgatanga. 

About 204 participants, drawn from the various artisans attended the forum. 

According to the Corporate Affairs Manager of the National Pensions Regulatory Authority, Emmanuel Awuku Dagbanu, the National Pensions Act 2008 Act 766 was implemented in 1st January 2010. 

Since then NPRA has engaged in stakeholder education and sensitization, both the formal and informal sectors countrywide. 

The aim was to encourage people to contribute towards their retirement, especially those in the informal sector that constitutes about 85 percent of the working population. 

Mr Dagbanu said the second round of the sensitization was in partnership with the Swiss Government and NPRA with the focus on the tier 3 pension’s scheme. 

He explained that the tier 3 as a voluntary Provident Personal Pensions scheme, supported by tax incentives. 

It aims at addressing peculiar needs of workers in the informal sector and provides additional funds for formal sector workers, who want to make voluntary contributions to better their pension’s benefits. 

On presentation of the new tier 3 Pensions Scheme, Mr Richard Sunday Yinbil took participants through the benefits which include reductions of the qualifying period of 20 years to 15 years, increase in income from 12 years to 15 years, tax exemptions of up to 35 percent, members can transfer their contribution from one scheme to another as they change jobs and can also use their lump sum under tier 2 in future to secure a mortgage for their primary residence.