Gov’t workers must safeguard Tier 2 pension funds

PUBLISHED elsewhere in this edition, is the story about government undertaking to transfer more than GH¢3.1 billion of Tier 2 pension funds into the various pension schemes of public sector workers by December 5, this year.

This followed an agreement reached between the Ministry of Finance, Ministry of Employment and Labour Relations (MELR), as well as the Forum for Public Sector Registered Pension Scheme.

Indeed, this must be welcome news for all public sector workers who have struggled with successive governments over the transfer of the Tier 2 pension funds to the various pensions schemes.

The government, following the establishment of the mandatory, fully funded scheme intended to be manage privately, created the Temporary Pension Fund Account (TPFA) at the Bank of Ghana, where it has for the past 10 years, lodged the contributions.

Unhappy about such an arrangement, as well as the government’s failure to transfer their contributions to their private fund managers, the workers threatened government severally with various actions.

The agitations which culminated in the formation of the Forum for Public Sector Registered Pension Scheme, to spearhead the struggle to transfer the fund has paid off.

The promise made by the government to transfer the funds by December 5, is indeed, a major breakthrough and good news to everyone who desires to see a secured retirement for all public sector workers in the country.

Infact, the Tier 2 pension scheme is designed primarily to give contributors, a lump sum benefit to replace what was previously available under the SSNIT Scheme.

The Ghanaian Times is hopeful that with the new agreement, the government and workers would continue to dialogue to ensure that commitments made are carried through.

No doubt Pension Schemes have become the necessary substitute as an old age security system for the aged for the maintenance of their standard of living.

The primary objective of the Pension Scheme is, therefore, to provide insurance against low income and wealth in old-age among others.

We are glad that the government has not only agreed to the transfer of the funds but prepared to transfer also accrued interests as well as delayed interest payments.

This is a major step towards ensuring that pensioners do not wallow in poverty after their retirement and that their contributions are invested in interest yielding schemes.

We commend the government and its agencies as well as workers leaders for striking the deal which would ensure that all public sector workers enjoy the fruits of their labour.

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