By Edward Acquah, GNA
Accra, May 1, GNA – The Civil and Local Government Staff Association, Ghana (CLOGSAG) has called on government to ensure the prompt payment of pension deductions to safeguard the retirement income of public sector workers.
The Association said delays in remitting pension contributions were undermining the benefits of contributors under the three-tier pension scheme and affecting workers’ long-term financial security.
Mr Kojo Krakani, the Deputy Executive Secretary of CLOGSAG, made the call when he delivered the Association’s 2026 May Day address at a Thanksgiving Service in Accra on Friday.
“On this May Day, which is our day, we call on government to do the needful by paying pension deductions on time,” he said.
“The unlawful non-payment of surcharges should cease, and government must pay all outstanding arrears without further delay,” he added.
He expressed concern over the persistent delays in the payment of pension contributions, including arrears, which had led to reduced investment returns and lower lump sum benefits for retirees.
Mr Krakani noted that under the National Pensions Act, 2008 (Act 766), employers who defaulted in remitting pension deductions were required to pay surcharges, but successive governments had failed to comply with that provision.
“By law, where an employer delays in the payment of deductions towards pensions, surcharges are to be paid in addition. Governments, over the years, are refusing to pay the requisite surcharges,” he said.
The Deputy Executive Secretary also highlighted disparities between contributory and non-contributory pension schemes within the public sector, describing the situation as discriminatory.
While workers under the contributory scheme relied on basic salaries for pension calculations, some non-contributory schemes allowed for additional allowances to be included, resulting in significantly higher pension earnings.
“Only basic salary is used in the calculation of pensions for the contributory group, while others can earn up to 100 per cent of their salary in allowances as pension,” he stated.
Mr Krakani said the intended unification of public sector pension schemes under Act 766, scheduled for implementation in 2014, had been abandoned through subsequent exemptions, thereby deepening inequalities.
He observed that delays in remitting pension contributions affected both retirees and active workers, as contributors were unable to realise the full value of their investments.
“Pension earnings are based on the level of contributions. Therefore, the lower the salary level and delayed payments, the lower the resultant pension,” he added.
The Deputy Executive Secretary urged the Government to address salary disparities and implement a fair and equitable pension system to ensure decent retirement incomes for all public sector workers.
The International Workers’ Day, also known as May Day or Labour Day, is celebrated annually on May 1 to honour the contributions of workers and promote their rights and welfare.
The day provides an opportunity for labour unions and worker groups to highlight challenges and advocate improved conditions of service.
GNA
Edited by Agnes Boye-Doe
Reporter: Edward Acquah