Resolution Of The National Executive Council Of The Health Services Workers’ Union Of TUC (Ghana) Adopted At Its Emergency Meeting On 9th October, 2014 At The HSWU Centre In Tema

The National Executive Council (NEC) of the Health Services Workers' Union of TUC (Ghana), at its emergency meeting held on 9th October, 2014 at the HSWU Centre, Tema, on the way forward for pensions and the implementation of the 2nd Tier Pension Schemesin particular, as well as the dangers posed to public sector workers by Government's intransigence at imposing a Pensions Trust on the Health Service Workers:

Basic National Social Security Scheme (Tier 1)
1. Expressed shock that the Government is heavily in arrears in the payment of its employees' contributions to SSNIT as reported in SSNIT Newsheet for August, 2014 and believes thiscould stifle the scheme and contribute to payment of pensions exceeding contributions as reported by the General Manager of SSNIT;

2nd Tier Occupational Pension Scheme
2. NotedthatHealth Services Workers' Union (HSWU) of TUC (Ghana) and the other Health Professional Associations have together registered and licensed the Health Sector Occupational Pension Scheme for all health sector workersin accordance with the regulations of the National Pensions Regulatory Authority (NPRA) including compliance with deadlines for registration;

3. Further, noted that the lump sum payment under the second Tier Occupational Pension Scheme will take effect from 1stJanuary, 2015 yet structures for its smooth take-off are not established and members, who are at the same time beneficiaries, of the Scheme do not even know where to go for their entitlements and how much they would be entitled to because the government has frustrated the smooth operation of the registered schemes in the Public Services and hindered its operation;

4. Observed that the Government's imposition of Pensions Alliance Trust as the sole Trust to run the Scheme on behalf of all workers in the Public Services is against the spirit behind the National Pensions Act, 2008 (Act 766) which, as we recall,was to engender competition to bring efficiency; and

5. Regretted that the leadership of the registered schemes have made all efforts to amicably resolve this matter including bringing their concerns to the attention of His Excellency, President John DramaniMahamaand even went further to submit recommendations to him but to no avail and that all other attempts to resolve this matter both through formal and informal channels are yielding no fruits.

After due deliberations, the NEC of the Union is firmly convinced that:

i. All the Pension contributions made by the employer and the employee vests in the beneficiaries of the scheme and not the government nor employer;

ii. The Tier 2 Schemes are private and not public property for the government to claim and interfere in its operations;

iii. The Tier 2 is a defined contribution and therefore it is the contributors, who are the beneficiaries of the Scheme, who bear any risk or brunt and not the Government nor employer as suggested by Government;

iv. The White Paper on the three Tier Pensions Schemes calls for multiple schemes, peer competition and prudent fund management to enhance efficiency;

v. The move by government to disallow the registered schemes to operate and instead create one broad scheme with government having majority representation is not within the spirit and purpose of the Pensions Act; and

vi. Thedecision by the Government to impose aTrust on public servants and its nonchalant and intransigent attitude in not paying the employers' contribution and as a result, contributing to the possible collapse of SSNIT and the worsening plight of the numerous contributors,who would be retiring, come January, 2015 and beyond is unacceptable.

The NEC in session, therefore, resolves that:
6. The Government and NPRA must take immediate steps to make the Health Sector Occupational Pension Scheme operate;

7. The Government and NPRA must ensure transparency and full disclosure of the amounts invested at Bank of Ghana in the name of the 2nd Tier

8. The Government and the NPRA must ensure that there is a full and adequate return on investment and that the said funds are transferred to the scheme's custodian.

9. The Government must respect the decision of its Public Servants on the issue of the Tier 2 and support them in their already chosen and well considered path.

10. The approach and posture Government has adopted on this matters running into four (4) years now is rejected and would resist, with all the powers at our disposal, any attempt by the government to impose a Pensions Trust to run our Schemes to deny us the benefit of Tier 2 Pensions arrangements as provided by Law.

11. The Union will work closely and in solidarity with the other public sector Unions and Associations that are making similar demands on the government and give its blessing to any action the Unions and Associations would embark upon, including strike actions, to ensure that Government jettisons its approach and interest in the matter for the benefit of Public Sector Workers in their genuine demands; and.

12. NEC prays and hopes that the Government will not allow this serious matter to degenerate to a point where there would be industrial disharmony in the whole public sector because if it does, then the blame should be laid squarely on the doorsteps of government and not the workers.

For and On Behalf of the National Executive Council of the Health Services Workers' Union of TUC (Ghana);

…………………………………………. …………………………………………
(Richard K. Yeboah (Rev.) (Reynolds O. Tenkorang)

National Chairman, HSWU Acting General Secretary, HSWU