CLOSAG calls on government intervention on past credits issue

The Civil and Local Government Staff Association, Ghana (CLOSAG) has called on government to intervene on the issue of past credits between the association and the Social Security and National Insurance Trust (SSNIT).

“We call on Mr Ignatius Baffuor Awuah, the Minister of Employment and Labour Relations as a matter of urgency to ensure that the matter is amicably resolved by November 18, 2019 to forestall any industrial unrest”.

Mr Isaac Bampoe Addo, the Executive Secretary, CLOSAG made the call on Monday at a news briefing in Accra.

The National Pensions Regulatory Authority (NPRA), SSNIT and the Ministry of Employment at a forum October 9, 2019, agreed that by October 29, 2019, SSNIT should come out with the modalities for the calculation and issuance of statements for each contributor on past credits earned as at December 31, 2009 based on 100 per cent Treasury Bill Rate compounded quarterly.

However, NPRA on September 18, 2019 issued a directive to SSNIT that all past credits so determined must earn interest at 100 per cent of 91-day Treasury Bill Rate prevailing at the time the contribution was received.

It said the Treasury Bill Rate applicable, should be compounded quarterly from the year of first contribution till the date of payment.

Mr Addo said the association was informed that SSNIT was not going to comply with the directives from NPRA on past credits, calling on authorities to intervene on the issue to avoid any untoward situation.

He said from January 1, 2020, was the implementation date for Tier two Pensions and that the association does not want its members who would be retiring from that date to be paid past credits that do not reflect the basis for its payment as directed by the NPRA directives.

“We see the stance of SSNIT as a tactical move to sabotage the smooth implementation of the three-tier pension scheme, which is scheduled to be fully operational with effect from January 1, 2020”, he added.

The Executive Secretary said, SSNIT was highly instrumental in getting the original implementation date of Januray1, 2015 pushed to January 1, 2020 which resulted in the enactment of the National Pensions (Amendment) Act, 2014 (Act 883).

Source: GNA