Vice President, Dr. Mahamadu Bawumia, wants urgent steps to be taken to reform the country’s pension schemes.
The Vice President is worried about the growing pension bill for non-contributors, who continue to draw larger amounts from the Consolidated Fund than those who have contributed during their working life due to the various pension schemes in operation.
Addressing participants at a high-level stakeholder meeting on Unification of Pension Schemes in the Public Sector, the Vice President said stakeholders must work together to ensure the full implementation of the National Pensions Act, which will harmonize pension schemes in Ghana to ensure equity in pension payment.
“How can those who make no direct contribution to their retirement earn more in pension benefits than those who make direct contribution through payroll deductions. There is good reason why more people under the non-contributory schemes are tempted to opt for early retirement, of course they are better of in retirement than the average worker.”
Bawumia cautioned that the country’s pension scheme could be rendered ineffective if the system remains as it is now.
On the proliferation of various pension schemes in the country, the Vice President said the development could spell further challenges for the sector.
“…the proliferation of different pension schemes will only add to the current challenges which unfortunately have kept out a large segment of the population, including farmers from any form of pension entitlement. This must change to ensure social equity,” he said.
Officials of the National Pensions Regulatory Authority (NPRA), Trades Union Congress (TUC), Controller and Accountant General’s Department, Bank of Ghana (BoG) and the Finance Ministry were in attendance at the event.
–
By: Jonas Nyabor/citinewsroom.com/Ghana
The post Bawumia urges stakeholders to reform pension scheme appeared first on Citi Newsroom.
Read Full Story
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS