The Civil and Local Government Staff Association (CLOGSAG) has served notice it will be putting a proposal before Parliament to amend the Pensions Act, 766, to allow retirees to opt out of the Social Security and National Insurance Trust (SSNIT) pension scheme.

This, according to the Executive Secretary of CLOGSAG, Isaac Bampoe Addo, allows retirees who have worked for their compulsory 180 months to have a better pension. The association explained that the call is to ensure that retirees are not worse off under the SSNIT pension scheme.

“We think that the minimum required is 180 months and you are pensionable, so it should be optional after I have contributed my 180 months and then my pension, that is the 13.5 percent I can use for other pension products.

“This is a proposal that we will be pushing forward because we think after you have done your minimum 180 months, you should be given the option to opt out of the SSNIT Scheme because we all don’t work for SSNIT for 24 months.”
Mr Bampoe Addo

Describing the aims and objectives of the Association as “laudable”, Mr Bampoe Addo insisted that in no time the voices of pensioners will be heard. The Executive Secretary of CLOGSAG iterated that the amendment will make retirees receive enhanced benefits in retirement.

Mr Bampoe Addo noted that despite active workers having a say on their pension contributions and their security thereof, retirees do not have such.

“At the moment, whereas active workers enjoy protection for their monies, retirees do not have any means that protect their finances.”
Mr Bampoe Addo

The Executive Secretary of CLOGSAG, moreover, noted that the Association will even afford members an opportunity to meet regularly and socialize for long-term health benefits.

Government Accrues over GHS40 billion Pension Funds for Retirees

In response, Mr Bright Wereko Brobbey, the Deputy Minister of Employment and Labour Relations, asserted that the government accrued over GHS40 billion as pension funds for retirees.

Mr Bright Wereko Brobbey disclosed that the government will roll out a risk-based system to provide security for all pension funds for the retirees.

It can be recalled that the recent amendment of the pension was in 2014. Subsequently, on 31st December, 2014, Act 883, the National Pensions (Amendment) Act, passed by the Parliament of Ghana came into force. At the time, the amendment was made to reduce the age exemption of those to whom Act 766 became applicable from its inception on 1st January, 2010 from 55 years to 50 years; To correct the formula for computation of pensions which was wrongly stated in Act 766; To introduce an Emigration Benefit under the 1st Tier being managed by SSNIT, to take care of non-Ghanaian members when they retire and are leaving Ghana for good. It also takes care of those who have not reached the retirement but are leaving Ghana permanently, and among others.