‘Act 766 does not permit organized labour to manage pensions’

pensionDr Prosper Ayisah, Sunyani Area Manager of the Social Security and National Insurance Trust (SSNIT), on Thursday said the new Pension Act does not permit labour unions to manage the second tier workers’ pension.

There is no provision in Act 766 that permit the government to transfer the second tier worker’s pension to organized labour, he emphasized at a business forum in Sunyani.

Under the theme “Creating the enabling environment for Brong-Ahafo Business,” the forum was organized by the Brong-Ahafo Regional Coordinating Council, in collaboration with TKC Business Consult, and attended by entrepreneurial and business entities in the region.

Dr Ayisah explained that because of the micro economic instability in the country, it would not be appropriate for government to allow labour unions to manage the second tier pension on behalf of employees.

Describing organized labour’s industrial action as illegal, Dr Ayisah, said it would be dangerous on the part of government, the largest employer, to release the accumulated pension to the unions.

He observed that the management of pensions was a risky service, and that was why government ought to be careful, so that employees, both in the formal and informal sectors, would not regret on retirement.

Mr Eric Opoku, Brong-Ahafo Regional Minister, emphasized that because of the strategic importance of the private sector in the national development processes, government promulgated the Public-Private Partnership (PPP) Policy, to further demonstrate its commitment and unambiguous support to the sector.

He advised business actors to enter into mergers and partnerships, which would not only make their industries and businesses bigger, but also enable them to get huge resources and capital for business expansion.

Mr Opoku observed that the existence of thriving businesses in Brong-Ahafo held the key to the socio-economic transformation and development of the region, because the enterprises, whether small or big, create jobs for people, facilitate income generation, reduce poverty and promote sustainable growth.

He noted that in response to government’s PPP policies, Local Economic Development, the private sector had made huge investments in the region, and was creating jobs for the youth.

For instance, he said, the African Plantation for Sustainable Development, which is operating in the region, has employed 1,400 locals directly, and paying them wages and salaries.

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