The Ghanaian Civil and Local Government Staff Association (CLOGSAG) has agreed to consider any new suggestions made by the government about the alternative pension fund offer.
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On Thursday, April 20, Executive Secretary Isaac Bampoe-Addo told this reporter that the new agreement won’t impact how their members’ benefits are paid when they retire.
He affirmed, “Based on our investment portfolio as Hedge Pension Trust, we are in a position to pay any of our retirees their benefits whenever they leave home.
Therefore, I explained to them that every scheme has a portfolio, and that because our investment portfolio is so strong and has the right composition, we will be able to meet all of our cash flow needs from it.
Despite a warning from Organized Labour urging all labor unions and fund managers to steer clear of the new idea, Mr. Bampoe-Addo said that his attitude has not changed.
The Board of Trustees of the Pensions Fund reportedly received a letter from the government inviting them to take part in the New GOG Proposed Alternative Offer for Pension Funds.
Some labor organizations, such as the University Teachers Association of Ghana (UTAG), have already informed their members that they will not be taking part in the new agreement.
Following a meeting on Thursday, April 20, Organized Labor issued a notice to protect the security of all workers’ pension assets.
The leadership took note of a Memorandum of Understanding (MOU) that the government had signed on December 22, 2022, and in which Organized Labor and the government had agreed to exclude all pension funds from the domestic debt swap program.
The Board of Trustees of the Pension Funds were consequently urged by spokesperson Dr. Anthony Yaw Baa “not to honor the invitation to participate in the so-called alternative offer for Pension Funds.”