Lump sum differences: Govt to pay retirees

President Nana Addo Dankwa Akufo-Addo has assured public sector workers retiring this year that the government will pay the difference in lump sum payments between beneficiaries of PNDC Law 247 and those of Act 766.

He said the difference would be paid through the Social Security and National Insurance Trust (SSNIT), and added that a committee would be set up to supervise the implementation of the decision.

President Akufo-Addo made the disclosure when he inaugurated the refurbished Trades Union Congress (TUC) Hall in Accra on Tuesday.

Originally constructed during the First Republic, the building now has 175 rooms, three conference rooms, a clinic, a bank, a post office, a canteen and a dedicated ECG transformer.

The government provided GH¢12.7 million as its contribution to the total cost of refurbishment.

Collaboration

President Akufo-Addo noted that as long as he remained President of the country, he would continue even more firmly on the path of co-operation and collaboration with labour for the benefit of the working people.

He said it had been his policy to find accommodation for matters of concern to the TUC and try to find ways to address them on mutually satisfactory bases.

One of such matters was a letter sent by the Secretary-General of the TUC on August 24, 2020, requesting his intervention to correct the injustice and unfairness in the implementation of the three-tier pension system and resolve the issue of past credit for public sector workers who retired from January 2020. 

President Akufo-Addo said he asked the Senior Minister, Mr Yaw Osafo-Maafo, to study the matter, and after extensive deliberation, he submitted the position of the government on that matter.

SSNIT position

This year marks the transition year when all public sector workers retiring under the three-tier pension scheme are having their pensions paid under the National Pensions Act, 2008, Act 766.
 
Even though SSNIT argues that Act 766 offers higher monthly pensions and better lifetime benefits to workers, compared to the erstwhile PNDC Law 247, some workers may receive lower lump sums (made up of the past credit paid by SSNIT and the tier-2), compared to what was paid under PNDCL 247.

Recognition

President Akufo-Addo said the government recognised the contributions the TUC had made towards the building of a happy and prosperous country.

"I continue to be reassured by the determination of organised labour and its leadership to rally behind the government to create a progressive nation buoyed down by faster economic growth rates and driven by the quest for decent jobs,” he said.

Fitting tribute

On the  refurbished headquarters, he said it was a fitting and proper tribute to the memory and work of the leadership and membership of the TUC.

The President recollected his visit to the hall in December 2016 as part of several stakeholder engagements he held prior to that year’s general election to interact with the leadership of the TUC and outline his vision for the transformation of the country if elected.

“Indeed, the state of the Hall of Trade Unions, at the time of my visit in 2016 and in the early years of my administration, would have made the likes of Pobee Biney, Vidal Quist and their successors very sad,” he said.

He noted that in recognition of the efforts and sacrifices the TUC had made towards the construction of a prosperous Ghana, when the government received a request from the leadership of the TUC to assist it refurbish the hall, it did not hesitate and offered GH¢12.7 million.

He explained that the refurbished hall was a fitting and proper tribute to the memory and work of the leadership of the TUC of yesteryear and today, including  Joe-Fio Meyer, John Tettegah, B.A. Bentum, A.M. Issifu, A.K. Yankey, Christian Appiah Agyei, Kwasi Adu Amankwah and Kofi Asamoah.

Peace

Touching on the forthcoming general election, President Akufo-Addo gave assurance of the peace and stability of the nation and called on all political actors and the citizenry to commit themselves to a peaceful process and forego any resort to violence.

 He reiterated the assurance by the Inspector General of Police and the other heads of the law enforcement agencies of their determination to enforce the laws of the land, including the law banning vigilantism, in an impartial and even-handed manner, without recourse to political colour, to secure the peace of the nation.

 He offered his full support to the security agencies.

The President said in 2008 he accepted the results of a closely fought election, which was won by the slimmest of margins of about 40,000 votes, without asking for a recount, and again in the disputed elections of 2012, he protested the outcome in the highest court of the land.

He noted that after proceedings at the court, he accepted the verdict and called on his followers to respect the decision of the court, which ensured that Ghana came out with enhanced democratic credentials, while the peace and stability of the nation was maintained.

President Akufo-Addo stressed that the New Patriotic Party (NPP) had proved to the world “that we were willing and able to submerge our individual and partisan preferences for the common good”.

Gratitude

The Secretary General of the TUC, Dr Yaw Baah, commended the President for responding favourably to the request for support to refurbish the building.

He paid glowing tribute to all those who had helped in the construction and maintenance of the building, from the period of the first President.