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Africa Centre for Retirement Research reacts to pension schemes past credit transfer

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The Africa Centre for Retirement Research (ACRR), has reacted to the call of The FORUM for Registered Public Sector Labour Unions to transfer past credit currently managed by SSNIT to second tier occupational pension schemes.

According to a statement signed by Abdallah Mashud, the Executive Director of the Africa Centre For Retirement Research, such a move will not be prudent or best serve the interest of the government, the contributors, and pensioners to have the Past Credit transferred from SSNIT to the Second Tier Occupational Pension Schemes (be it public or private).

The FORUM for Registered Public Sector Labour Unions in a press release on May 26th 2021
on the heading “DELAY IN THE IMPLEMENTATION OF THE CONSENT RULING BY THE NATIONAL LABOUR COMMISSION AND NEGATIVE IMPACT ON RETIREES” is requesting the transfer of past credit currently managed by SSNIT to second tier occupational pension schemes.

The terms of settlement according to the FORUM has to do with; firstly the transfer of past credits to the respective public sector occupational pension schemes and Secondly the determination and payment of Lump Sum shortfalls to pensioners who retired in the year 2020.

The FORUM is also demanding:

1. That, SSNIT would demonstrate the computation of Past Credit using sample data submitted by some wings of the FORUM, by indicating for each beneficiary in the sample data, the monthly contributions from date of joining the scheme to date of computation or date of retirement (whichever comes earlier).

2. That, the Past Credit shall be determined as the accumulated value of 4% of members’ monthly salaries (as contributions to SSNIT) from the date of first contribution to 31st December, 2009 at an interest rate of 50% of prevailing Government of Ghana 91-day Treasury Bill (TB) rates. The Past Credit value as at 31st December, 2009 will then be accumulated at 100% of the prevailing 91-day Treasury rates compounded quarterly and cumulatively till retirement.

3. That, the quantum of Past Credit in the custody of SSNIT shall be determined, and same would be transferred to the Second Tier Occupational Pension Schemes with emphasis on the five public sector schemes.

The FORUM has threatened strike action if provisions in the agreed Terms of Settlement between the Government and the FORUM dubbed ‘the consent ruling’ by the National Labour Commission is not fully implemented.

Find Below The Full Statement

Statement By Africa Retirement Research Centre

One Response

  1. Even what the second tier fund managers have now they can’t account for it. Let anyone go and print his tier 2 statement it starts from 2014 others 2015
    Meanwhile contributions started going to NPRA since 2010

    And you want to add more to it? Ghana we dey

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