The National Pensions Regulatory Authority (NPRA) has reiterated calls for pension fund managers to invest in long term instruments to protect the money of workers.
According to the NPRA the tier two and tier three schemes provide enough money for fund managers to invest in long term securities to safeguard the funds.
Speaking to Citi Business News, the Deputy CEO of the NPRA, David Tettey-Amey Abbey cautioned that the regulator will be strict in protecting funds of workers to secure their future investment.
“We always advise people [Fund Manager] that if you want to go long term, look at the equity market. We believe that with this amount of liquidity with fund managers, companies should be able to list on the equity market,” he said.
Citing the Pensions Act, Act 766, Mr. Abbey argued that the law provides enough space for fund managers to invest the money and make returns.
“We go to retirement around 60 years and you go on compulsory retirement around 55 years, Act 766 was enacted in 2010. You realize that a lot of people above 50 were exempted from contributing to the three tier.They were asked to still stay with SSNIT so what it meant was that young people who are in the second and third tier which is mostly private managed pensions will have about 15 yeasr resting period to go on retirement. We believe that that is long term enough, 15 years is long term so such a scheme should be invested in long term investment,” he explained.
He pointed out for example that the equity market is perfect platform to invest such funds to guarantee the returns needed.
“Capital markets are usually long term investment opportunities. The equity market is for long term, you don’t go and buy shares and expect that in a year’s time you should make money,” he maintained.
By: Lawrence Segbefia/citibusinessnews.com/Ghana
Published on 11 April 2017 | 9:00 am at Source