The General Secretary of the Public Services Workers Union (TUC), has voiced concerns about the low pensions received by public sector workers while highlighting several issues contributing to this problem.
Speaking on the Joy News national dialogue on pension reforms on Thursday, July 25, Bernard Adjei, pointed out that members of the Public Services Workers Union are receiving very low pensions, which he attributes to poor returns on investments and the mismanagement of funds by the Social Security and National Insurance Trust (SSNIT).
He explained that SSNIT’s lack of expenditure caps means that a significant portion of the funds, instead of being invested for the benefit of members, is spent on fund management. He identified this as a regulatory problem.
He added that “low pensions in the public sector are also partly due to low salaries because single spine has woefully failed.”
He also pointed to the government’s late pensions contributions to SSNIT as another issue impacting the amount of pension funds received.
Additionally, Mr Adjei criticized the regulator for failing to apply sanctions to ensure that interest is paid on delayed payments, further reducing the pension funds available to retirees.
Adjei emphasized the importance of a stable and well-functioning pension system, stating, “Whether planned or not, we will all be pensioners. Therefore, it is better we ensure that the pension system we have is stable and works well so that it can guarantee a source of funds to meet workers’ financial needs.”