Over GHc1Bn Pension Funds Are In B.O.G's Account Says Gov't

Dr. Edward Omane Boamah

For two weeks now, public workers in the country have embarked on a strike action to register their displeasure with the government over claims that the latter has failed to account for the former's pension funds. The workers have therefore sought clarification on the management of their second tier pension contributions and expressed doubts about government's intent to secure their monies. Some have argued that their pensions have been handed over to Pension Alliance Trust, an accredited Trustee selected by the Pension Committee to manage the funds and believe the monies are given to Pension Alliance Trust to purchase Merchant Bank. But Dr. Edward Omane Boamah, Communications Minister, has dismissed such assertions saying the funds are safely secured with the Bank of Ghana. He disclosed at a press conference on Monday, that the contributions of the workers have amounted to a tune of over 1 billion cedis including benefits accrued after investing the monies in treasury bills. He also stressed that the law regulating the pension scheme has not been amended since its promulgation in 2008. “The new Pension law, the national Pension Act 2008 (Act 766) was promulgated on 12th December 2008. The New Patriotic Party lost the 2008 general elections. Ladies and Gentlemen, the law has remained same and has seen no amendment since the NDC formed government in January 2009 under President Evans Atta Mills of blessed memory. President Mahama’s government has also not amended the law yet," he stated. According to him, the NDC government under the leadership of President John Dramani Mahama has maintained the Pensions Act 766 and applied it to all pensioners in the country. “One of the most deceptive narratives which is often repeated by persons who are not familiar with the actions taken so far to implement the new pensions regime has been that government, in violation of provisions of Pensions Act – Act 766 – unilaterally imposed a Trustee on public sector workers. It is instructive to note however those who advance this argument often fall short of stating the relevant provisions which government has violated. “Pursuant to Section 218 of Act 766, every employer is enjoined to open a Temporary Pension Fund Account (TPFA) into which all tier 2 deductions will be kept in trust until such time that trustees are appointed and fund managers duly registered. The NPRA disclosed that the total balance on account held by the Bank of Ghana as the 27th October, 2014 is 1,641,117, 27.70 billion and this include returns accrued after investment in treasury bills.” Explaining further the rationale behind government's action for not leaving the management of the Pension funds in the hands of private entities, Dr Omane Boamah said allowing a private entity to manage the funds needs to be carefully looked at since government doesn't want the funds to be "at the mercy of private interest who cannot provide the same guarantee.”

Source: Ameyaw Adu Gyamfi/Peacefmonline.com