A 10-Member Committee has been inaugurated by the senior minister Mr Yaw Osafo-Maafo to determine the quantum of Past Credit Payable to retirees, and modalities of the credit transfer with the Social Security and National Insurance Trust (SSNIT).
Past Credit is pensioners’ money that remained with SSNIT after the coming into force of ACT 766, which required the Scheme to transfer four per cent of pensioners’ funds to fund managers (second tier).
The Chairman of the committee Mr. Ignatius Baffour Awuah, Minister for Employment and Labour Relations, has one month to submit its report and recommendations to the senior minister and he is working with committee members made up of government appointees and civil servants as well as members from the registered public sector pensions scheme forum.
The members of the Committee from the government side include Mr. Bright Wireku-Brobby, a deputy minister of employment and labour relations; Madam Laurette Kokor Otchere from SSNIT; Mr. Hayford Amankwah, National Pensions Regulatory Authority; Mr Wisdom Messan, Controller and Accountant General’s Department; and Mr. Emmanuel Adjorlolo, from the Ministry of Finance.
The rest of the members making up the full house of the committee from the forum of registered public sector pensions scheme also include Mr. Isaac Bampo Addo, the forum’s chairman, Mr. Thomas Musah, Mr. Derrick Annan, Mr. Eric Angle Carbonu and Madam Perpetual Ofori-Ampofo all members of that forum.
The Committee is to make recommendations on how the difference in lump sum payments between PNDCL 247, and Act 766 for persons going on pension between 1st January 2020 and 31st December 2020 should be addressed.
It will also determine the quantum of past credit for each beneficiary, and come out with modalities for the transfer of past credit still with SSNIT to the five public sector occupational schemes.
In his inaugural address, the Senior Minister Mr. Yaw Osafo-Maafo noted that the issue of the past credit has been 2017 when the joint ministerial technical committee was established to resolve matters relating to temporary pension fund account (TPFA), and added that the task of the committee was thus, very important.
The determination of past credit had been inconclusive despite significant efforts, as well as compromises made by all parties to bring finality to the matter, the senior minister noted and recalled that in 2018, the forum petitioned the sector minister to look into the matter to safeguard the retirement benefits of hardworking Ghanaians.
Stakeholder engagements were held as a result to agree on a roadmap acceptable to all parties, and that the first meeting on past credit was held on 28th August 2018 the senior minister stated adding that due to the inconclusive discussions at the ministerial level, the attention of the President was drawn to the matter for intervention.
In the event of the above the President, Nana Akufo-Addo directed the request to the Senior Minister’s Office for mediation.
Recounting a development, Mr. Osafo-Marfo said during the commissioning of the refurbished hall of the Trades Union Congress (TUC) last month, President Nana Addo Dankwa Akufo-Addo, assured the labour unions of the good intentions of his government to pay any difference in lump sum payments for those retiring in 2020.
The Terms of Settlement between Government and the FORUM, which was adopted as consent ruling on the matter by the National Labour Commission (NLC), is under what the 10-member Committee was being inaugurated to make proposals on the way forward for Government’s consideration.
To the Committee Members, Mr Osafo-Marfo said, “We acknowledge the difficult task ahead of you, but with the cooperation of all stakeholders, it should not be an impossible task.”
The Committee already agreed on the terms of settlements which had been sent to the NLC, the chairman of the forum of registered public sector pensions scheme Mr. Bampo Addo stated and concluded by saying “…all is well that ends well.”
A deputy minister of finance, Madam Abena Osei Asare, urged the committee to work hard to resolve all issues related to past credit and all other matters of concern with Mr.Wireku Brobby concluding it was important for government and the committee to work together to resolve the issue “once and for all”.