Sam Pee Yalley, former National Pensions Regulatory Authority CEO has said the pension scheme faces danger because the high rate of unemployment affects the pension scheme fund and brings it to a halt.

“Pension is a function of two factors, more people working to cater for people on retirement so if the employment reduces, it affects the pension fund, the other danger to the pension fund is if the pension fund investors (corporate trustees) do not get returns or the desired interest, that can also kill the pension scheme fund,” he told Omanhene.

According to him, the current happening is an indication of collapsing the pension scheme.

“The danger is what we are witnessing, there's a cease on employment and there's a cease of interest, that's where the danger lies”, he added

He said if the government refuses to pay contributions for the next 6 months, corporate trustees would not have money to invest to pay the pension scheme fund.

Finance Minister Ken Ofori-Atta on Monday announced domestic bondholders except Treasury bill holders will be affected by the debt exchange program.

Per the arrangement, bondholders will get 0% interest in 2023, 5% in 2024 and 10% onwards.

The bonds will also, be redeemed in 3 installments within 10 years.

the Attorney General advised against any unilateral variation of Collective Agreement Clauses (CAC). The AG in his legal advice to the finance minister asked for domestic bondholders to be engaged before any such move.
According to the A-G, the debt exchange programme can at best be voluntary given the legal ramifications.

"In the absence of an agreement with parties, it would be unlawful for the government to unilaterally introduce CACs into bond agreements and may constitute an event of default under clause 12 of terms and conditions of the bond issued under the program"

Mr. Alfred Tua stated in his advice.

"Voluntary engagement with parties to bond agreements would be able to produce the outcome of a voluntary modification and inclusion of CACs on bondholders" he added.

Member of Parliament for Bolgatanga Central Isaac
Adongo has consequently asked affected bondholders to proceed to the law court given the decision by finance minister Ken Ofori-Atta to ignore the legal advice of the Attorney General.

"Ken Ofori-Atta ignored the express legal opinion of the
AG to illegally and unilaterally shred binding terms of the bond agreements in the debt exchange program.
Affected bondholders must proceed to court" Mr.
Adongo wrote on social media.

"Ken Ofori-Atta ignored the express legal opinion of the
AG to illegally and unilaterally shred binding terms of the bond agreements in the debt exchange program.
Affected bondholders must proceed to court" Mr.
Adongo wrote on social media.

Meanwhile, the Chamber of Corporate Trustees has already rejected the debt exchange program announced by the finance minister.

In a statement, the Pensions Chamber assured pensioners it has not agreed with the government on the debt restructuring move.

He said this in an interview with Sompa Tv on Tuesday, 6 December 2022

Author: Eric Murphy Asare
Source: sompaonline.com