The Forum for Public Sector Associations and Unions has asked the government not to apply a “haircut” to Tier 2 Pension Funds as part of a “probable” debt restructuring programme.

The Forum said it had taken note of media reports suggesting that about 94 per cent of Tier 2 Pension contributions placed in government securities might be affected by the said debt restructuring agenda.

At a press conference in Accra today, Thursday, October 20, 2022, Mr Isaac Bampoe Addo, Chairman of the Forum, said any such decision on the Tier 2 Pensions would contravene provisions of the National Pensions Act, 2008.

“If the government was to pursue the restructuring of Ghana’s debt by touching pension funds, placed in government securities, it would be tantamount to deceit of benefits envisaged under the Three Tier Pensions Scheme,” he said.

Mr Addo said following the media reports, the Forum officially wrote to the National Pensions Regulatory Authority (NPRA) for clarification.

He said the NPRA, in its response to the Forum, assured that: “there’s no such policy or decision at the moment to restructure Ghana’s debt and as regards the 94 per cent of Tier 2 pension contributions placed in government securities.”

Mr Addo said the decision to place a larger proportion of Tier-2 funds into government Securities, was due to the fact government paid all the Temporary Pension Fund Account (TPFA) at Bank of Ghana in government securities.

He said the Occupational Pension Schemes had efficiently grown the Tier-2 Pensions Funds that would allow the schemes to pay “better lumpsum” to its contributors on retirement.

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