Ghana: GLOGSAG Worried Over Transfer of GH¢53 Million to Gov’t Pension Scheme

The National Executive Council (NEC) of the Civil and Local Government Staff Association, Ghana (CLOGSAG) has expressed worry over the unauthorized transfer of funds from contributions of its members into the accounts of Public Sector Workers Employer’s Pension Scheme (PSWEPS), a temporary pension scheme set up by the Finance Ministry in 2017.

According to CLOGSAG, a whopping fifty three million Ghana Cedis (GH¢ 53 million) has been again transferred to PSWEPS. While five million Ghana Cedis (GH¢5 million) contributions of members under its vibrant Hedge Master Trust Occupational Pension Scheme policy has also been transferred to the same scheme.

The association added that its members working at the Lands Commission have had their Tier 2 contributions diverted to PSWEPS.

All efforts to retrieve these anomalous transfers have proven futile. The PSWEPS is creating a gloomy image for government since it has outlived its usefulness. GLOGSAG therefore wants the PSWEPS to be scraped as such, the Executive Secretary of CLOGSAG, Isaac Bampoe Addo told journalists at a press conference.

CLOGSAG through NEC has given government up to 18th June, 2021, to have these anomalies corrected saying a delay in this regard will compel the association to fall on other options to get the best deal for its members.

Mr Bampoe Addo said all attempts to correct this anomalous have fallen on deaf ears and wondered how the PSWEPS had metamorphosed into a permanent scheme under the Finance Ministry.

The pensions funds, he said, belong to the contributors and no group of individuals or institution has absolute power and authority over it and thus called on government and its allied agencies to refrain from the funds to the total benefit of contributors.

Throwing more light on the Pension Funds, he said the funds cannot be used to defray any cost or expenditure and for that matter PSWEPS the move demonstrates a violation of the pension law and challenge the Finance Ministry to put a stop in running the scheme.

Ben Laryea reporting from Accra, Ghana