Gov’t intensifying pension reforms to cover informal sector workers – Minister

Government is intensifying efforts to integrate informal sector workers into voluntary pension schemes as part of broader reforms to secure dignified retirement for all Ghanaians.

Dr Abdul-Rashid Hassan Pelpuo, Minister of Labour, Jobs and Employment, said this at the Third Health Sector Occupational Pension Scheme Annual General Meeting in Accra.

The meeting was held on the theme: “Strengthening Ghana’s Pension Ecosystem for Development and Retirement Security.”

While there are more than 200,000 potential beneficiaries, only about 8,000 have been integrated into the scheme, highlighting the need for improved financial literacy and pension schemes among workers and employers to boost participation and compliance.

Dr Pelpuo noted that the government was exploring flexible contribution models tailored to the irregular incomes of informal sector workers, including artisans and other self-employed persons across the country, a move he said was crucial for pension coverage.

Mainly, the government would leverage technology through a national platform to integrate pensions data into the Ghana Labour Market Information System, while promoting dignified work outcomes.

“It’s a technological platform that we are using to protect all pension information and labour statistics throughout the country… and it will provide comprehensive data on the country’s labour and pensions landscape,” he stated.

The Employment Minister commended authorities for the Health Sector Occupational Pension Scheme, calling for a collaborative approach to make the scheme robust and ensure that workers retired with financial security after years of service to the nation.

“The sustainability and inclusiveness of our pension ecosystem are not merely social ideals. They are critical components of our strategy for long-term economic growth.” Dr Pelpuo said.

Mr Joe Jackson, Chief Executive Officer (CEO) of Dalex Finance, speaking at the event, noted that Ghana’s pensions sector remained fragile, and called for urgent reforms to ensure sustainability and better outcomes for pensioners.

He advocated a focus on reforms that would expand coverage, diversification of investment, as well as improvements in governance that would build trust among contributors and the public at large.

That required enhanced engagement through transparent dashboards, micro-pension agent networks, digital onboarding, tier-three micro pensions, and improved risk management measures.

Mr Joseph Ampofo, President of the Chamber of Corporate Trustees, emphasised the critical role of good governance in building public trust in pension schemes, calling for strong governance built on integrity and accountability.

He pledged the Chamber’s resolve in supporting such reforms to enable the pensions sector to serve as a catalyst for economic transformation, saying, “when governance is strong, trust grows.”

Mr Victor Azumah, Deputy CEO, National Pensions Regulatory Authority (NPRA), urged stakeholders to strengthen interdependence among actors in the pensions sector and leverage pension funds for development in the national interest.

The Health Sector scheme, the second largest sectoral pension scheme in the country, has demonstrated impressive growth over the years. Assets Under Management have reached GHS5.4 billion, with a total of GHS140.3 million paid to 5,106 members since 2019.

Source: GNA