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Business News of Sunday, 15 September 2019


Extension of tier three pension scheme will hurt workers - CLOGSAG

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Innocent Komla Agbolosu, Volta Regional Chairman, Civil and Local Government Staff Association, Ghana (CLOGSAG) has said the proposed extension of the three-tier pension scheme would hurt the Ghanaian worker.

He said though the pension's Act was amended to bring relief to workers, the current state of affairs could make workers "worse off" when they retired.

Mr Agbolosu told the Ghana News Agency (GNA) at a meeting with municipal and district executives of CLOGSAG that should government fail to resolve the impasse within two weeks, they would lay down their tools as the current scheme left most government retired workers poorer.

Mr Agbolosu said though the President directed the Minister of Trade and Labour Relations to liaise with Social Security and National Insurance Trust (SSNIT) and the National Pension Regulatory Authority (NPRA) to resolve the issues, nothing was done.

He said funds deducted from workers’ salaries into the Temporary Pension Fund Account (TPFA) to be transferred to the occupational pension fund schemes, was still not reconciled.

Mr Agbolosu explained that data to accompany funds that were released into Hedge Pension Trust, managers of CLOGSAG tier two pension scheme, was not properly collated.

He said that would make it impossible to operationalise the scheme especially for those retiring in January 2020, first batch of workers under the new scheme.

Earlier this week, the national leadership of CLOGSAG, asked SSNIT to compute past credits of contributors from date of employment based on individual contributions with interest calculated using current Treasury bill rates on individual statements.