GH¢3.1bn pension fund transferred to labour unions

The government paid 3.1 billion cents in Tier 2 pension funds into various union pension scheme custody accounts. This ends his six-year dispute between the government and unions over how the fund should be managed.

President Nana Addo Dankwa Akufo-Addo, speaking at a press conference in his first year in office, said the struggle between the unions and the government was over thanks to sound economic policies introduced by the government.

“We were able to transfer about 3.1 billion cents of a Tier 2 pension fund into a union pension plan custody account, which had been unpaid for his six years and the union had expressed dissatisfaction,” he said. Told.

union confirmation

Isaac Bampoe Addo, secretary general of the Civil and Local Government Staff Association (CLOGSAG), told the B&FT that the move did happen. "It happened; I can confirm," he said. Ghana Medical Association (GMA) Executive Director, Judge Dr. Yankson also confirmed that the medical sector received part of the funding in December 2017 and early January 2018.

They have been paid in the form of securities or investments. There is still work to be done to resolve some outstanding issues, but the provisional budget of GH¢ 3.1 billion has been resolved."

Background

For the past seven years, the union has been in a dispute with the government over the payment of the Tier II pension fund. Despite threats of strikes, successive governments have failed to solve the problem. The unions involved are:

Citizens and Local Government Employees Association (CLOGSAG); Ghana Medical Association (GMA); Ghana National Teachers Association (GNAT); Union of Concerned Teachers. National Association of Graduate Teachers (NAGRAT); Union of Public Service and Health Workers. Ghana Registered Nurses Association; Government Hospital Pharmacists Association, etc.

Union contributions have been held in a Temporary Pension Fund Account (TPFA) at the Bank of Ghana since 2010, according to the union. Situations they describe as illegal.

The first strike threat was made in 2012, followed by another strike threat in 2014, 2016, and last July when the government finally gave in to its demands.

Unions challenged the Treasury Department's decision to appoint the Pensions Alliance Trust as the sole trustee of the secondary pension plan for all public employees.