Pension funds: Private sector gives govt Nov. 30 ultimatum

Private sector workers in the country have given government end of November to transfer their two years’ tier-two contributions to their fund managers or face their wrath.

The contributions cover from January 2010 to December 2011.

Secretary General of Industrial and Commercial Workers Union (ICU), Mr Solomon Kotei told The Finder that when the new pensions act, Act 776, took effect from January 2010, the contributions of the private sector workers were also kept in trust for the National Pensions Regulatory Authority (NPRA) by the Bank of Ghana (BoG).

He explained that the private sector completed all process and appointed their fund managers, which started work in January 2012.

According him, since then, all attempts to get the money from the BoG was unsuccessful because the Social Security and National Insurance Trust (SSNIT) and the BoG could not reconcile the principal owed private sector workers and the interest that has accrued so far.

Mr Kotei warned that if the reconciliation is not completed and the money handed over to their fund managers at the end of next month, they would advice themselves.

He stated that under Act 776, all employees who were 50 years and above as at 2010 were to retire on the new pension scheme and such people would be retiring January next year.

He said since the appointment of their private fund managers in 2012, they receive statements every quarter and are privy to instruments their monies are invested in.

He told The Finder that private sector workers are satisfied with how their monies were being invested as the returns were good.

Twelve labour unions embarked on an indefinite nationwide strike from Wednesday, October 22, 2014 over issues relating to their pension scheme.

The unionised bodies are rejecting government's imposition of the Pension Alliance Trust and are also calling on the government to allow the full operationalisation of the Public Sector Pension Scheme, but they are not making any headway in this.

They unions, christened the Forum for Public Sector Registered Pension Schemes, are: Health Service Workers’ Union (HSWU); Ghana Registered Nurses’ Association (GRNA); Ghana Medical Association (GMA); Ghana Physician Assistants’ Association (GPAA); Government and Hospitals Pharmacists’ Association (GHOSPA); Ghana Association of Certified Registered Anaesthetists (GRCRA).

The rest are Ghana National Association of Teachers (GNAT); Teachers and Educational Workers’ Union (TEWU); National Association of Graduate Teachers (NAGRAT); Coalition of Concerned Teachers (CCT); Judicial Services Staff Association of Ghana (JUSAG); and Civil and Local Government Staff Association Ghana (CLOGSAG).

Ever since the announcement was made, government and labour unions have exchanges words all over.

Government has brought a suit against above-mentioned unions over their strike that has left many public institutions completely or partially shut.

The Attorney-General and Minister of Justice is seeking a declaration that the strike is illegal and an order to public sector workers to return to work.

Mrs Marietta Brew Oppong-Appiah is asking the court for an "order that the defendants jointly and severally pay to government as employer any financial or economic loss suffered by government during the pendency of the strike."

Public sector workers across the country declared a strike in protest against government's decision to manage their second-tier pension funds.

They say the decision is in contravention of the Pension Law, but the A-G, in her statement of claim, is seeking a "declaration that on a true and proper construction of Section 129 and 211 of the National Pensions Act, 2008 (Act 766), government is the employer of all public sector workers and is consequently entitled to appoint a trustee or trustees in relation to the Second Tier Pension Scheme."

The workers believe that it is their right to manage their tier pension funds or at least appoint their own trustees to manage the funds.

The government disagrees.

The A-G is seeking an alternative declaration that "upon a true and proper construction of Section 129 and 211 of the National Pensions Act, 2008 (Act 766), neither an employee nor a representative of such employee is by law entitled to sponsor an employee-sponsored scheme or a master trust scheme in relation to the Second Tier Pension."