Government Assures Ghanaians Pension Funds Is Intact At The Bank of Ghana 


Minister of Employment and Labour Relations, Haruna Iddrisu has asked workers to invest their trust in government rather than in a union or a scheme.

He assures the striking public sector workers that government wants to be part of the operationalization of their second tier pension scheme because it wants to guarantee the future of pensioners.

“Government wants to guarantee the risk of unforeseen future risk,” he told the media on Friday as the public sector strike enters day three.

"If you cannot trust government, who can you trust," he asked.

Twelve public sector groups, known as the Forum, declared an indefinite strike starting on Wednesday to pile pressure on the government to allow the unions to manage their second tier pension schemes.

Some workers had also suspected that government is taking an entrenched position because it has misapplied the fund.

“The Temporary Pension Fund is with the Bank of Ghana,” Haruna Iddrisu assured, stressing, “No monies have been disbursed from the Temporary Pension Fund to any entity as being wickedly and maliciously claimed by some people.”

Making reference to unfortunate incidents in countries such as Chile, Spain and South Africa, he insisted that government is concerned about the future risk if the various unions are allowed to manage the scheme.

“You will not know whether the monies would be managed well or well,” he cautioned.

“You can trust government, government is government, it probably may not be my government today but a future government, but it is government” he emphasised.

“Is it not better to entrust your future in the hands of government than a union worker or a union leader who himself may be due for retirement.”

He assured that government would put in place the appropriate systems to predict future risk that may be associated with the fund and also ensure that the fund is “judiciously used”.

For now, he reiterated, the monies are with the Bank of Ghana, with the Governor as the custodian. The monies are being invested in treasury bills and have “yielded very good returns”, he said.

Workers had also entertained fears that colleagues who are due for retirement in January 2015 would be disadvantaged if no agreement is reached, but the Employment Minister asserted that their retirement package is assured.

Haruna Iddrisu has also made a passionate appeal to workers to resume work and return to the negotiation table, hoping every doubt would be cleared and issues resolved before the end of November.

Meanwhile, the Minister announced that government has lodged a complaint with the National Labour Commission because the strike contravenes Act 651 of the Labour Act because the failed to notify government of their intention to strike.

He said, "Government in turns through the Attorney General to proceed to court to seek a proper interpretation on aspects of provisions of the Pension Act, and seek clarification on the second tier pension scheme and the role of employer and employee in the management of the scheme.”

Meanwhile, government has issued an official statement again assuring the public sector workers that it takes full responsibility of the management and security of all public sector pension funds and will disburse the monies sitting at the bank of Ghana to accredited schemes and will be resolved by the two parties; namely government and workers.

Government therefore asked Public Sector Workers to remain calm and let dialogue to resolve the impasse. It also appealed to them to return to work whilst they work collectively to resolve the matter amicably.




Below Is Full Statement:

OFFICIAL GOVERNMENT STATEMENT ON ONGOING STRIKE ACTION BY PUBLIC SECTOR WORKERS ON MANAGEMENT OF 2ND TIER PENSION SCHEME

Distinguished Ladies and Gentlemen of the Press, we have invited you here to share some facts on:

(a) the management of the 2nd Tier Pension Scheme and
(b) the on-going strike action by a section of Public Sector workers on the 2nd Tier Pension Scheme.

We wish to respond as follows:

We appeal to Labour, our social partners to remain calm and let us dialogue to resolve this impasse. I therefore call on all Public Sector Workers to return to work whilst we work collectively to resolve the matter amicably.

We note that it has taken too long to get a solution but I assure organized labour that there is a solution in sight and that pension issues are very complex and fundamentally important. It is better to take the right decision in a long time than a quick decision that may affect retirees who have served the Public Service in dedication.

Indeed, government has responded more positively to many of the contentious issues including:

(a) Government accepting to review the National Pension Act to deal with past credit and age;
(b) Government's readiness and willingness to transfer money to the TPFA and to disburse it as soon as the structure and mechanisms are put in place.

Let me assure Ghanaians that all payments into the Temporal Pension Fund Account is in the custody of the Bank of Ghana and no monies have been disbursed from that account to any entity as is being maliciously claimed by some interest groups.

No monies have been paid to Pension Alliance Trust. Government is willing to review the role of Pension Alliance Trust as Trustees in relation to the management of the 2nd Tier Fund.

The concern of Government is the associated future risk in the event of mismanagement/mis-investment of Pension Funds by any player. It is important for Ghanaian workers to note that in retirement you will not belong to a union. You are on your own. At least you can trust and rely on government as a guarantor and sponsor of your social security. We are talking about the income security of Ghanaians when they retire, and they no longer belong to workers' unions.

Government will continue to protect principles of the Second Tier Pension which require funds invested under this tier to be paid in cumulative value and accrued interest.

Government wishes to assure public sector workers that it takes full responsibility of the management and security of all public sector pension funds and will disburse the monies sitting at the bank of Ghana to accredited schemes and will be resolved by the two parties; namely government and workers.

Government undertakes to pay and guarantees to pay to deserving workers who will be entitled to pension benefits come January 2015 as they retire. If you cannot trust government, who can you? Government is the best and most reliable guarantor of all Social Security and Pension benefits. We will work to establish the vehicle to manage the second Tier Pension Fund. Government intends to do this in partnership with public sector workers.

Government, through the Attorney General intends to proceed to court to seek a proper interpretation on aspects of provisions of the Act and some clarifications on the Second Tier Pension Scheme.

The Ministry of Employment on behalf of Government as employer have also lodged a formal complaint at the National Labour Commission as the action of the Public Sector Workers is in contravention of Act 651 of 2008.

We need as argued by labour to find an urgent settlement to this matter. However, government does not accept the operation of the

2nd Tier Pension Scheme registered by the four (4) named unions or associations to operate in its current form.

Government is willing to work and negotiate with the unions to improve it in the best interest of all parties, particularly to safeguard any unforeseen future risk.

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