President of the National Association of Graduate Teachers (NAGRAT), Angel Carbonu, has expressed concern over the government's failure to promptly pay Tier-2 pension funds.
Speaking on JoyNews’ PM Express, Mr Carbonu revealed that the last time the government disbursed Tier-2 pension funds was in June 2023, with union dues last paid in December 2023.
According to him, the monthly deductions made from workers' salaries by the Controller and Accountant General’s Department, which are designated for various purposes, including contributions to the Social Security and National Insurance Trust (SSNIT), Tier-2 pension funds, and union dues, are not being transmitted promptly to their intended destinations.
“Every month the Controller and Accountant General’s Department does deduction from workers' salaries into third-party destinations. And they are SSNIT, Our Tier-2 funds, and the dues that are collected for the various Unions.
“Unfortunately, when these deductions are made, they are not transmitted immediately to their destination institutions, so for example, the last time the government paid the Tier-2 funds was in June 2023. With the issues to do with our monthly dues, what we use to run the Union office, the last time the government sent funds was in December 2023,” he said on Tuesday.
The NAGRAT president expressed concern that a similar delay may exist with Tier-1 SSNIT contributions, exacerbating the vulnerability of workers and pension schemes alike.
Mr Carbonu emphasised the dire consequences of this delay, particularly in cases where workers may urgently require access to their invested funds, such as in the event of sudden death.
He explained that affected individuals would only receive their invested funds minus the deductions made since July 2023, resulting in reduced returns and financial insecurity.
“What it also means is that those monies have not been invested so the worker does not get much for the contribution he or she makes.”
He underscored the government's obligation to ensure the timely payment of mandatory deductions on behalf of workers.
He lamented that the failure to fulfill these obligations has left pension schemes without the necessary resources, further compromising their ability to provide adequate support to members.
“So this has left the various schemes vulnerable because they are not getting the resources that they are supposed to get timeously.”
Credit: myjoyonline.com