The Civil and Local Government Staff Association, Ghana (CLOSAG) is appealing to President Akufo-Addo to ensure the restructuring of the Social Security and National Insurance Trust (SSNIT) to ensure the welfare of pensioners.
Following a revision of the Pensions Act for SSNIT to stop the payment of lump sum benefits to pensioners from January 2020 under PNDC Law 247, workers who turn 60 years will no longer receive lump-sum payments from the Social Security and National Insurance Trust. Such contributors will now have to turn to the fund managers of their second-tier contribution for lump sums.
Speaking at its closed-door 2020 May Day virtual celebration, the Executive Secretary of CLOGSAG, Isaac Bampoe-Addo said he believes a review of the scheme will improve the welfare of pensioners.
“On this workers day, 1st May 2020, CLOSAG is appealing to his excellency Nana Addo Dankwa Akufo-Addo, President of the Republic of Ghana to personally ensure that SSNIT is immediately restructured to assure workers of income security in retirement and to meet their commitments under the three-tier pension scheme.”
“On our part, the hedge pensions trust has developed systems that enable it to play a leading role within the pensions industry, it has achieved economy, efficiency and effectiveness in the delivery of the required services to the benefit of our cherished clients within the local government service, the civil service, the non-formal division of the ministry of education and other public services as well as the private sector. It is gratifying to note that during the first quarter of 2020 the hedge pensions trust has paid all the 214 pensioners who applied for tier-two benefits spanning from 1st January 2010 to time of retirement” he added.
According to the Mr Isaac Bampoe-Addo, SSNIT was to reduce its administrative cost, high staff numbers and poor returns on investments per a recommendation given by a Presidential Commission on Pensions established by former President John Agyekum Kufuor in August 2004, but the Trust did not heed the recommendation.
“The commission recommended that SSNIT, as an institution, should undergo an extensive restructuring which should involve an overhaul of its governance, management and administrative structure. Also, the proposed increase from one to three Deputy Director Generals ought to be re-examined by the SSNIT management, “ he noted.
