The Forum for Public Sector Registered Pension Schemes, has accused the Social Security and National Insurance Trust (SSNIT) of shortchanging its members in the computation of Past Credits.
The Past Credit is the contribution of workers to SSNIT before the coming into force of Act 766, which brought about the three-tier pension scheme.
At a press conference in Accra, The Forum said SSNIT has contravened a directive from the National Pensions Regulatory Authority (NPRA) which said Past Credits as determined must earn interest at 91-day Government of Ghana Treasury Bill Rate prevailing at the time of the contribution received.
The Forum said it has found that this is not being done.
Chairman, Isaac Bampoe Addo said “Regrettably, SSNIT has failed to comply with the NPRA directives on the Past Credits. What SSNIT stated in its press statements are false and this is a deliberate attempt to cheat the worker.”
He said SSNIT had received the NPRA directives in September 2019 and are aware that their current method of computation is way below the instructions given by the Regulator, NPRA.”
He described as “misleading” a statement issued by SSNIT to the effect that it has recomputed the Past Credits of members using 100% Treasury Bill Rate compounded quarterly as captured in a previous agreement and that the result of that computation is shown on the Statement of Accounts of its members.
“SSNIT is aware that it used rates of 50% Treasury Bill Rate (and below) to calculate the Past Credits which was rejected by The Forum,” Mr Addo said challenging SSNIT to reveal its current method of computing the Past Credits.
He added “The Forum observes that currently, most of the Public Sector Occupational Pension Schemes (Tier 2) are performing well and earning above the Treasury Bill Rate. It must also be noted that long term bonds issued by government are by far higher than the Treasury Bill Rate.
“In fact, all Tier 2 funds including Past Credits should be in the custody of custodians of various trusts. By agreeing to allow the Past Credits to remain with SSNIT on the grounds that immediate transfer of the funds will jeopardize the operations of SSNIT, we are making a lot of sacrifices and that should be recognized.”
The Forum wants the issue with the Past Credit computations to be addressed without delay and called out SSNIT for not reciprocating its good gesture that was done in good faith.
“The Forum is serving notice that if by January 1, 2020, adequate measures are not put in place to ensure smooth implementation of Tier 2 of the three-tier Pension Scheme, all the members of the Forum would stay at home in solidarity with our members who would be retiring and would have to receive paltry Past Credits due to wrong computation by SSNIT as a result of non-compliance of the NPRA directives on Past Credits,” Mr Addo threatened.