CLOGSAG against selection of Pensions Alliance Trust to manage Tie 2 Pension
The Civil and Local Government Staff Association, Ghana (CLOGSAG) has expressed surprise about the selection of Pensions Alliance Trust Limited to manage the Occupational Pension Scheme of the Association also known as Tier 2.
Pensions Alliance Trust is a private corporate Trustee.
A statement issued by Isaac Bampoe Addo, Executive Secretary of CLOGSAG and copied to the Ghana News Agency in Accra on Thursday said members are utterly shocked about the selection of the Trustee without their involvement as required by the Labour Law.
“It is important to note that CLOGSAG has registered a corporate trustee to manage the Pensions for its members, and has taken steps to sensitise its constituents across the country.
As an Association, we have the right to be consulted and to participate in any decision that may affect our members. Pensions, for that matter, affect the future of our members, and all decisions concerning pensions is of paramount interest to CLOGSAG, “the statement said.
CLOGSAG said government has selected and appointed a Trustee for all public service employees without considering the fact that the 2nd Tier is a Defined Contribution Scheme where the risk of investment is fully borne by the contributors.
“Our initial observation is that this action by the Minister of Finance and Economic Planning, appointing a Trustee for Civil and Local Government staff, without taking cognisance of the fact that CLOGSAG has registered Hedge Pensions Trust, to manage its own pensions is unilateral and an imposition that is not backed by the tenets of the National Pensions Act 2008, Act 766 and the Labour Law.
“Mortgaging pension contributions of staff of Civil and Local Government Services to a private Trustee for five years is contrary to the intent and purpose of the National Pensions Act 2008, Act 766, as it violates the portability principle of the new pension scheme. Could this not be an avenue for the payment of judgment debt should the five -year contract be terminated?
CLOGSAG should not be made to suffer the same unfairness, inequities and inconsistencies that have characterised the Single Spine Pay Policy.
“Our members have suffered and continue to suffer injustices and CLOGSAG would not countenance any manipulation of our pensions and our future. CLOGSAG and its members would not accept to be part of the agreement between the Ministry of Finance and Economic Planning and Pensions Alliance Trust Limited.”
The statement said the National Executive Committee of CLOGSAG is…warning the Finance Minister to desist from meddling in “our pensions and our future”.
Source: GNA