Resignation letter sent to Mills by CEO of Pension Authority
Continue from yesterday’s issue
6. Licensing of Corporate Trustees.
The Authority is gearing up to license Corporate Trustees with the assumption that the Temporary Pensions Funds under the care of the Authority would be transferred to license Corporate Trustees. Although the Authority is under tremendous pressure to issue licenses, it is my humble submission that the process be given some critical thought. Additionally, the desire to license must be balanced with the development of the appropriate regulatory capacity of the Authority.
Liabilities of Transitional Provisions– Act 766, Section 213. ‘The following enactments and schemes shall on the commencement of this Act apply for a transitional period of four years and cease to be in force after that period.’
a. the Pensions Ordinance No. 42 of 1950 (CAP 30) as amended;
b. Teachers Pension Ordinance 1955 as amended;
c. Ghana Universities Staff Superannuation Scheme;
d. Ghana Police Pensions Act, 1985 (PNDCL 126);
e. Public Legal Officers Pensions Amendment Act 1986 (PNDCL 165);
f. Immigration Service Pensions Act 1986 (PNDCL 226)
g. Prisons Services Pensions Act 1987 (PNDCL 168)
h. Section 34 of the Security and Intelligence Agencies Act 1996 (Act 526) and
i. Section 27 of the National Fire Service Act, 2000 (Act 537)
Section 219 (1) “Subject to section 213 of Act 766 the retirement benefits in respect of accrued or past service earned by an employee shall be computed in accordance with the terms of conditions of service existing before the commencement of this Act 766”. Section 219 (2) states that “Each employee shall be issued with a Ghana Government Retirement Bond equivalent to the total retirement benefit that was due the employee as computed at the commencement of Act 766”.
There is no doubt that Sections 213, 219(1) & (2) impose an onerous task on the Government. These sections pose real challenge to the national economy and one would have wished that there was adequate platform to discuss with the appropriate government agencies for effective planning and management of pension liabilities that are crystallising. The President’s Economic Advisory Council was hinted about this contingent liability. Your Excellency, there is no doubt in my mind that the work of the Authority is herculean but with limited resources. There is the need to make policy determination as to how to fund the activities of the Authority at its initial stages. There are a number of options to be considered.
· Government funding all the activities of the Authority
· A combination of Government funding and limited generation of internal fund through levies
· Government giving seed money to set the Authority up for the next two years and wean off completely
· The Authority immediately levying schemes including SSNIT and Temporary Pension Funds aggressively
· Donor support Whatever the option chosen, it is important to give the Authority financial muscle to get its work done efficiently.
Your Excellency, having said all these, what is most important is the human beings who work in the organisation and the leadership being offered through the Board Chairman and the Chief Executive Officer. The deteriorating nature of the relationship between the Board Chairman and the Acting Chief Executive Officer is not healthy and poses a great challenge to the development of the Authority. It is in this light that I have decided to resign my position as the Acting Chief Executive Officer of the Authority with effect from 1st May, 2012. I will proceed on terminal leave from 16th March, 2012 to 30th April, 2012. I intend to use the period from now to the time I proceed on leave to wind down and handover to my Deputy and the Board Chairman.
Your Excellency, unfortunate as my decision may be, I wish to thank you sincerely for the opportunity offered me to serve for the past one year. I wish the Authority, the Board and Staff well in the march to develop the pension industry in Ghana.
DR DANIEL K. SEDDOH
ACTING CHIEF EXECUTIVE OFFICER
NATIONAL PENSIONS REGULATORY
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