Govt’s explanation for keeping Tier 2 pension funds dishonest – Kwaku Kwarteng


NPP MP for Obuasi West constituency Kwaku Kwarteng says government’s claim that it provides the best safety guarantee for the Tier 2 Pension funds of public workers is dishonest.

He said the legal regime governing the Tier 2 pension funds does not allow government to provide such guarantees.

There has been a stand-off between government and public sector workers over the appointment of trustees to oversee the management of 5.5 percent deductions from workers’ salaries.

Government has appointed a private trustee, Pension Alliance Trust, to supervise the management of the Tier 2 Pension funds.

Public sector workers, who called a strike over the matter, accused government of arbitrarily choosing or appointing the trustee. Government is in court seeking clarity over who has the power to appoint a private trustee to manage the funds.

The workers say they must be allowed to appoint their own private trustee or trustees to manage their pension funds.

But government insisted it has a responsibility to protect workers, especially when they go on retirement. Employment and Labour Relations Minister, Haruna Iddrisu, said if government could not be trusted to keep the money safe, who would?

He cited countries where private trustees mismanaged pension funds, forcing government to bail the workers out.

But Kwaku Kwarteng says the explanation is disingenuous.

He said government could not use public money to bailout a private trustee that mismanages worker’s contributions.

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