Organised labour, corporate trustees satisfied with pension funds alternative offer

Leadership of Organised Labour and the Chamber of Corporate Trustees have expressed satisfaction with the terms of the Alternative Offer for Pension Funds and urged constituents to participate on the advice of their boards.

In separate press statements, the two entities explained that the decision was arrived at after careful examination and deliberation on the offer.

“It was concluded that the terms stated in the Alternative Offer is better than the initial offer Organised Labour rejected in December 2022,” the Organised labour said its statement signed by its Secretary General, Dr Yaw Baah.

Both entities are also pleased with the fact that the Alternative Offer guarantees no loss in patrimonial value, the bonds can be actively traded on the secondary bond market and there is also the assurance that coupons and maturities will be paid on time.

“In addition to these, we also hope any restructuring of bonds held by pension schemes will contribute to the recovery of the Ghanaian economy,” said the Chamber of Corporate Trustees in a statement signed by Thomas Kwesi Esso, Executive Secretary.

Organised Labour has urged various boards of trustees of pension funds to independently assess the Alternative Offer and participate in the exchange based on their assessment and in the best interest of their members.

It said that it would closely monitor the implementation of the provisions in the Exchange Memorandum to ensure that government did not default in the payment of interests and principal when they fall due.

“In other words, Organised Labour will not tolerate default. In the event that government fails to implement the provisions as stated in the Exchange Memorandum Organised Labour will advise itself” it added.

The chamber, on the other hand, has recommended that pension funds convene emergency meetings of their Boards of Trustees to take appropriate decision and promote inclusivity.

Government on July 31, 2023 announced the restructuring of GH¢31 billion pension funds in the next phase of its Domestic Debt Exchange Programme (DDEP).

According to the Ministry of Finance, the exercise will affect the E.S.L.A. Plc and Daakye Trust Plc.

Source: GNA

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