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Gov’t to transfer GH¢3.1bn into tier two pension funds

Gov’t to transfer GH¢3.1bn into tier two pension funds

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Government has agreed to transfer GH¢3.1 billion to the custodian accounts of the pension schemes of the labour unions, called the Forum, by December 5, this year.

The tier two pension funds have been lodging with the Bank of Ghana since 2010 when the National Pension Regulation Authority Act was passed.

Government and the Forum comprised four labour schemes; namely, the Health Sector Occupational Scheme, Ghana Education Service Occupational Scheme, Civil and Local Government Service Occupational Scheme, and the Judiciary Service Occupational Pension Scheme.
The funds would also cater for all other labour unions that are not yet registered with the scheme.

Government and representatives of the Forum signed the communiqué on Friday in Accra, to signify the resolution of issues relating to the tier two pension funds.

The communiqué was signed after both government and Forum had agreed and adopted the Ministerial Technical Committee’s Report.

They agreed that a sum of GH¢3.1 billion would be transferred from the Tier Two Pension Account to the labour schemes, and would be done in the following proportion.

The Health Sector Occupation Scheme, 21.6%; Ghana Education Service Sector Occupational Scheme, 58.9%; Civil and Local Government Service Trust Occupational Scheme, 10.23%; and Judiciary Service Occupational Pension Scheme 0.9%; while all the other labour unions yet to register their schemes would receive 8.2%.
The amount includes interest and interest on delayed payments.

Two representatives each from the Labour Forum and the government side signed the communiqué during the signing protocol.

Bright Wireko Brobbey, the Deputy Minister of Employment and Labour Relations, read the communiqué on behalf of government.

Mr Brobbey said in September this year, government and the Forum agreed on a roadmap to determine the way forward towards the resolution of issues relating to the tier two pension funds, which is lodging with the Bank of Ghana.

He said both government and the Forum adopted the committee’s report and agreed that the transfers should be invested in long-term instruments spanning a period of 10 years, while 50 per cent of the funds should be invested in instrument between one and seven years, with only one per cent invested in cash instrument.

The transfers would be effected to the schemes by December 5, 2017, so that each scheme would have its management team to manage the funds.

The outstanding issues on the tier two pension funds had been pending since January 1, 2010.

Mr Brobbey said: “I remember when the Trades Union Congress met with the President, Nana Dankwa Akufo-Addo, about a month ago; this was one of the issues they raised and the President gave a firm commitment to resolve the issue, and asked his ministers to resolve it by November 30, this year, and thank God we have been able to resolve it”.

The Deputy Minister gave the assurance that government would continue to engage the labour unions and act in good faith in dealing with them, and asked for their continued co-operation in dealing with labour issues.
Mr Brobbey expressed appreciation to all the stakeholders for their co-operation in ensuring the peaceful resolution of the issue.

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