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02.11.2004 Regional News

Workers criticise Pension formula

By GNA

Ho, Nov. 2, GNA - Workers of the Volta Regional Directorate Ghana Education Service (GES) are of the opinion that the formula for computing SSNIT Pensions makes a handful of top executives rich pensioners while impoverishing a majority of retired middle and low income workers.

"It is known that SSNIT Pension more than compensates retiree workers who have served in top management positions because of the fat salaries on which they retire," a memorandum presented to the Presidential Commission on Pensions in Ho stated.

The 17-point memorandum signed by Mr. Samuel Gyang, Regional Director said other employees were seriously disadvantaged under the arrangements.

It contended that SSNIT's monopoly in pensions management in the country had made it complacent and incapable of any innovation enough to meet its social obligations.

The memorandum, therefore, suggested that SSNIT be made to "effectively compete with all other private companies to develop pension schemes that should be at least commensurate with the Cap 30 Pension".

The memorandum also called for a 50 per cent slash of income tax on public sector salaries to be channelled into the retirement fund contributions of workers.

It envisaged that every worker would be a client of an Insurance Company of his or her choice.

The memorandum described the SSNIT scheme as it operates now as a "social killer".

It concluded that any pension short of the benefits under the Cap 30 scheme enjoyed by a section of workers "may only bring about civil strife, civil notoriety and acrimony, and above all, employee disaffection for the state". 02 Nov. 04

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