Accra, Oct. 31, GNA – Mr Ignatius Baffour Awuah, Minister of Employment and Labour Relations (MELR), on Tuesday, cautioned against the opting out of some public sector institutions from the National Pension Scheme, saying that, it could jeopardise the sustainability of the Scheme.
He said hitherto, only article 71 office holders in the judiciary were entitled to the CAP 30 Pension Scheme but now junior Judges had been included, whilst Senior Police Officers are on a similar scheme equivalent to the CAP 30.
“Day-in-day out, we’ve been receiving petitions from various institutions arguing that, per the Law establishing them, they were supposed to be on CAP 30 instead of on the National Pension Scheme,” he added.
Mr Awuah, who was inaugurating an 11 – Member Advisory Group to review the pay system in Ghana, charged the Advisory Group to look at the pay system in Ghana and see how to link it to productivity to ensure appropriate compensation.
That, he said, was in line with the government’s agenda to compensate workers efficiently according to work done.
The Minister said there would be amendments to include a representative each, from the Civil Service, Public Service Commission and Organised Labour unto the Advisory Group to make the number 14.
The Advisory Group, chaired by Mr Wireko Brobbey, Deputy Minister of Finance, would also look at the total pension Scheme, including the Tier 2 Pension Scheme as well as identifying other best practices and systems worldwide and advice the government.
Mr Awuah said the Group was free to adopt and seek advice from best pay systems across the globe, adding that, they have three month to report back to the Ministry.
He said it became necessary to put up the group to complete the earlier work done in the area, to facilitate policy decisions and the sustainability of the entire pension scheme.
Madam Abena Osei Asare, Deputy Minister of Finance, who is also a member of the advisory Group, said the setting up the Group was in the right direction because salaries would continue to take the chunk of the tax revenue.
She said currently, salary related expenditure takes more than 50 per cent of the tax revenue, and that, it was in the right direction to engage Organised Labour to develop an efficient system to help generations to come.
Mr Brobbey, on his part, thanked the two Ministries for the confidence reposed in them and pledged their commitment to work hard to achieve their goals.
He said the three months given the group meant that they do not have enough time for luxury but to put in their efforts and complete the job before the deadline.
Mr Brobbey said they hope to cut down on their travels and rather resort to electronic means to reduce cost, and expressed the hope that the two Ministries would guide them to excel in their work.
Mr John N.O Ankrah, the representative of the Civil and Local Government Staff Association on the Group, on behalf of Organised Labour, urged the two Ministries to allow the Advisory Group to review the pay system of article 71 Public Office holders, as well as all the institutions exempted from the Single Spine Pay Policy to allow fairness in Ghana’s pay system.
Dr Baah Boateng, the Ghana Employers’ Association (GEA) representative on the Group, said compensation is both a reward and a cost to enterprise and expressed his appreciation that this time around salaries would be linked to productivity.
He pledged the GEA’s commitment to help the Group to come out with a comprehensive report.