Health workers demand pension deductions

The Volta Regional Council of the Health Services Workers’ Union of the TUC-Ghana Tuesday slammed government over its “overly” delay in releasing deductions from members’ salaries towards lodgment with the Union’s preferred service provider under the tier two pensions.

“We would resist any attempt to impose any company on us,” Mr Samuel Mensah Regional Industrial Relations Officer told Journalists after a council meeting of the Union in Ho.

Under the new pension law five percent of the 18 and half percent of Social Security deductions was to be managed by contracted Service Providers, towards lump sum payments to contributors on retirement.

Mr Mensah said the Union decided to send “another cry” to government to strictly adhere to the stipulations of the Pensions Act to avoid the wrath of the Union.

“Accordingly, we call on Government to order the Controller and Accountant-General to begin to remit our five percent of the 18 and half total contributions into our Custodian Account immediately,” he stated.

Mr Mensah flanked by Celestine Kodzi, Regional Chairperson, Paul Avedzi, Vice-Regional Chairman and Esi Dake, Women’s Committee Chairperson, called for total “transparency and accountability in the operation of the Temporary Pension Fund (TPF) Account at the Bank of Ghana”.

He said members of the Health Sector Occupational Pension Scheme had agreed to the appointment of the service providers and “have full confidence in the Board of Trustees and service providers”.

Mr Mensah said members were cognizant of the fact that only members of a defined contribution pension bore any risks associated with its operations “and not the employer or government”.

He said the current situation of the latent second tier pension process was “mind boggling,” as “we are aware some members would retire from service from January 2015 and have to collect their lump sum from tier 2”.

Mr Mensah said members were prepared to “defend their right to social protection and therefore called on government to allow the registered schemes to operate and stop the imposition of the Pensions Alliance Trust”.

Mr Mensah said “we hope government would listen, but that failing we would decide on reaching the brink of the bridge”.