Osafo-Maafo inaugurates committee to probe pension lump sum payment

The Senior Minister, Mr Yaw Osafo-Maafo, yesterday inaugurated a 10-member committee in Accra to resolve the impasse between labour and the government over money paid to retirees this year as pension lump sum.

It follows concerns raised by workers who fall under the Forum for Public Sector Registered Pensions Scheme that amounts of money paid to its members who retired this year as lump sum payments are lower than what they would have received had they retired under PNDC Law 247.

The committee, chaired by a Deputy Minister of Employment and Labour Relations, Mr Bright Wireko-Brobbey, is to make sure that public sector workers who retired this year are paid what is truly due them and commensurate with what they would have received if they had retired in previous years.

The committee has a one-month period to present its report to the Office of the Senior Minister for study and action.

Committee’s mandate

Its terms of reference include addressing the differences in lump sum payments between PNDCL 247 and Act 766 for persons going on retirement between Jan 1, 2020 and December 31, 2020.

It is also to determine the quantum of past credit (PC) for pension beneficiaries, as well as set the modalities for the transfer of the PCs still in the possession of the Social Security and National Insurance Trust (SSNIT) to the five public sector occupational pension schemes.

Membership

Membership of the committee is drawn from the Forum for Public Sector Registered Pensions Schemes (the Forum), the National Pensions and Regulatory Authority (NPRA), SSNIT and the ministries of Finance and Employment and Labour Relations and include Mr Isaac Bampoe Addo (Chairman, The Forum), Mrs Perpetual Ofori Ampofo, Mr Eric Angel Carbonu, Mr Derick Annan and Mr Thomas Musah, all from The Forum.

Other members from the government, the NPRA and SSNIT are Mrs Laurrete Kokor Otchere, Mr Hayford Amankwah, Mr Wisdom Messan and Mr Emmanuel Adjorlolo.

Vulnerable period

Before inaugurating the committee, the Senior Minister commended The Forum for its decision to use dialogue to resolve the impasse that had occurred over the lump sum amounts paid under the National Pensions Act (2008), Act 766 and the PNDC Law 247.

He said the government’s position was that no law or policy should make a worker worse off and expressed its commitment to ensure that the concerns over PCs and lump sum payments were adequately addressed.

“When people retire, that is the period when they are most vulnerable. Therefore, under no circumstance should we add to their situation,” he said.

He said although the committee had one month to conclude its work and present a report, his office would be impressed if members of the committee expedited action on the matter and submitted a report before the agreed date.

“We are talking of money matters here and we do not want the committee to suffer the usual delays. We will, therefore, be happier if the report comes early enough,” he said.

Mr Osafo-Maafo assured workers that the matter would be pursued to its logical conclusion, adding that President Nana Addo Dankwa Akufo-Addo was passionate about seeing the matter resolved.

Assurance

A Deputy Minister of Finance, Mrs Abena Osei Asare, also assured workers that her office was ready to implement the committee’s recommendations to the letter.

“Whatever the recommendations are, we will implement them to make the government, the Forum and the entire workers in the public sector happy,” she said.

Net budget

Mr Bampoe Addo commended the government for the actions it had taken so far.

He said The Forum expected the committee’s report to be ready before the next budget was read, so that payments could be effected in the 2021 revenue and expenditure estimation statement.

He appealed to the government to be transparent in the way it negotiated on the matter.