Civil servants welcome pension reform bill

Accra, July 11, GNA - The Civil Servants Association (CSA) on Friday lauded the government for the Pension Reform Bill and the proposed establishment of a National Pension Regulatory Authority as a prerequisite for the restoration of confidence of workers in the administration of pensions.

It noted in a statement issued in Accra that, high administrative costs had been associated with the Social Security Scheme operated by the Social Security and National Insurance Trust (SSNIT) and this had been a matter of concern to contributors. "The CSA therefore welcomes the proposal of a maximum limit of 10 per cent on administrative expenses to be determined by the proposed Regulatory Authority in consultation with the Board of Trustees and consistent with best practices of similar social security systems." The civil servants also said they welcomed the proposal that, the Board of Trustees of SSNIT shall not charge any expenditure or make any deductions from the funds of the social security scheme other than those prescribed by the National Pensions Regulatory Authority. The Association said the proposed introduction of a voluntary fully-funded and personal pension scheme as a third-tier would meet the social security needs of many working people, particularly those in the in the informal sector.