The National Pensions Regulatory Authority (NPRA) has assured trustees who appointed UT Bank as their Custodian that their Pension Funds will not be affected by the takeover.
NPRA said the current purchase and takeover by the GCB Bank and subsequent withdrawals of their license by the Bank of Ghana would, in no way, affect contributions of trustees.
A statement issued by the NPRA and copied to the GNA on Tuesday in reaction to the takeover of the two banks, noted that the National Pensions Act, 2008 (Act 766), as amended, had made special provisions for such takeovers in section 209 (1 and 2) and, therefore, there was no cause for alarm.
The National Pensions Act has special provisions for such takeovers that states that: “Despite the provisions of any other enactment, pension funds or assets kept with a custodian under this Act shall not be used for the payment of claims of a custodian’s creditors in the event of liquidation of the custodian.”
“In the case of winding up, liquidation or cessation of business of the custodian or any or all of its shareholders, the pension funds or assets in the custody of the custodian shall not be seized or be subject to execution of a judgment debt or from transfer to another custodian.”
“The Authority is, therefore, reassuring its stakeholders, especially Trustees affected by the takeover, that the necessary actions are being taken with the various stakeholders to ensure a smooth transition for the benefit of contributors,” it said.