The Civil and Local Government Staff Association, Ghana (CLOGSAG) has called for the Public Services Workers and Employee’s Pension Scheme (PSWEPS) to be scrapped and pensions funds transferred into the scheme reverted.
The Association said pension funds of workers were illegitimately transferred to the scheme without their knowledge and consent, calling for those amounts of money to be returned and the scheme scrapped.
Mr Isaac Bampoe Addo, Executive Secretary of CLOGSAG, at a press briefing, said PSWEPS had outlived its usefulness.
He said the scheme was established as a temporary one for workers and since CLOGSAG and other associations now had their own pensions trust for workers, there was no need for transfers into the old scheme.
He said the act constituted a violation of the pensions law and called on the Ministry of Finance, which operates the scheme, to dissolve it and return the funds to workers’ pension funds.
Mr Bampoe said GH¢5 million contributions of members of CLOGSAG under the Hedge Master Trust Occupational Pension Scheme were under unknown circumstances diverted into accounts of PSWEPS, adding that efforts to retrieve the money were unsuccessful.
“By the GLICO report, it has been established that about GH¢53 million were syphoned and transferred to PSWEPS. PSWEPS ought to transfer this amount to the Hedge Pensions Master Trust Occupational Pension Scheme,” he added.
The Executive Secretary said they had informed the appropriate authorities on the matter and expressed the hope the issue would be addressed latest by June 18, 2021.
“If no positive action is taking on the issues by then, we would employ other options to get the best deal for our members.
“Pension funds belong to the contributors. They do not belong to any person or institution, neither the schemes nor government or employer can touch it. CLOGSAG is by this communiqué cautioning all to keep their hands off and allow the funds to grow for the benefits of the contributors,” he added.