Payment of 7% per annum on past credits unfair to retired workers – Forum for Public Sector Registered Pension Schemes

The Forum for Public Sector Registered Pension Schemes has described Social Security and National Insurance Trust (SSNIT) payment of seven per cent per annum on past credits as unfair to retired workers.

Mr Bampoe Addo, Chairman of the Forum, said the situation was sad because at the time SSNIT was paying such low earnings on past credits, funds managed by the Public Sector Schemes were averaging 19 per cent per annum.

The chairman made the remarks at a press conference organised by the forum in Accra in response to SSNIT’s assertion on media platforms that the earnings on past credits were guided by a formula accepted by parties to which a memorandum of understanding (MoU) was signed between the government and the forum.

However, Mr Addo pointed out that SSNIT did not have any moral justification to the MoU they were laying claims to, because SSNIT had rejected their representative prior to the signing of the agreement.

He said it was important for people to know that the determination of the formula was distinct from the earning on the past credits, adding that it was significant to also take note that past credit covers the period of first contribution to the point of retirement.

“Whereas Tier 2 funds are managed by trustees, fund managers and custodians, in the case of past credits, SSNIT wants to act as trustee of the credits, the fund manager and custodian without any supervision from any quarter,” he said.

Mr Addo said workers and the public should judge whether it was fair to receive seven per cent per annum from SSNIT, while Public Sector Schemes were earning 19 per cent per annum.

BY LAWRENCE MARKWEI