The Civil and Local Government Staff, (CLOGSAG) has said that “Per Section 102 on Protection of accrued benefits of a member in an occupational pension scheme, funds in that regard cannot be used for Domestic Debt Exchange Programme”, as stated by the Ministry of Finance.

CLOGSAG was referring to a statement by the Finance Ministry on the 4th December, 2022 during the launch of the Ghana’s Domestic Debt Exchange by government as part of the drive.

According to the Association, the statement have expressed worry and discussions among public sector workers leading to various interpretations in the Pensions space following the statement.

At a news conference in Accra, the Executive Secretary of CLOGSAG, Mr. Isaac Bampoe Addo said the scheme does not tie into the said programme and further pointed out that individual contributions and earnings of the fund is vested in the individual and not the

“We state categorically that Pension Funds are individual investments and per the pronouncement by the Hon. Minister of Finance, pension funds for individual holders are exempted from Debt Exchange Programme”, he said.

He explained that provisions in the National Pensions Act 2008 (Act 766) must be revisited by government as the Association is reminding that duty bearers to come clean on issues relating to national pensions.

The Association is serving notice to the National Labour Commission (NLC) indicating that if government defaults in honouring any of the coupons when due for the schemes it will embark on an indefinite nationwide strike.

“CLOGSAG in these regard will be on the alert and will fervently monitor issues as it unfolds”, he said.

Source: Ben LARYEA/Contributor

About Author

Leave a Reply

Your email address will not be published. Required fields are marked *