CLOGSAG demands prompt pension payments for public workers

Ghana's Civil and Local Government Staff Association (CLOGSAG) has demanded that the government promptly pay all pension deductions for public sector workers. This move seeks to protect the retirement income and long-term financial stability of these employees. Delayed payments reduce investment returns and ultimately decrease the lump sum benefits received by retirees.

The association highlighted that the government's failure to remit pension contributions on time undermines benefits under the three-tier pension scheme. This ongoing issue affects many public sector workers, jeopardising their financial security after retirement. CLOGSAG called for an immediate end to the unlawful non-payment of surcharges and urged the government to settle all outstanding arrears without further delay.

This issue fits into a broader pattern of pension management challenges in Ghana's public finance sector. Consistent delays in remitting deductions have been a recurring concern, impacting the viability of pension funds and public trust. The National Pensions Act, 2008 (Act 766) mandates surcharges for employers who default on pension payments. However, CLOGSAG notes that successive governments have not complied with this legal provision.

Mr. Kojo Krakani, the Deputy Executive Secretary of CLOGSAG, delivered this urgent appeal during the association's 2026 May Day address in Accra. He stated, “On this May Day, which is our day, we call on government to do the needful by paying pension deductions on time.” Mr. Krakani also stressed that the unlawful non-payment of surcharges must cease, and the government must pay all outstanding arrears immediately. He expressed significant concern over persistent delays and their impact on retirees' lump sum benefits.

The implications of continued delays are substantial for Ghana's economy and its public workforce. Reduced pension entitlements can lead to increased financial hardship for retirees, potentially burdening social welfare systems. Financial markets will closely monitor the government's response to these demands, as pension funds represent significant pools of capital. Effective resolution of this issue could bolster investor confidence in the government's commitment to financial obligations.

Furthermore, Mr. Krakani pointed out significant disparities between contributory and non-contributory pension schemes within the public sector. He described this situation as discriminatory, affecting fairness and equity for workers. Workers under the contributory scheme base their pension calculations solely on basic salaries. In contrast, some non-contributory schemes allow for the inclusion of additional allowances, leading to much higher pension earnings.

Mr. Krakani illustrated this imbalance, stating, “Only basic salary is used in the calculation of pensions for the contributory group. Others can earn up to 100 per cent of their salary in allowances as pension.” He lamented that the intended unification of public sector pension schemes, initially planned for 2014 under Act 766, has been abandoned. Subsequent exemptions deepened these existing inequalities across the public sector.

Delays in remitting pension contributions profoundly affect both retirees and active workers. Contributors cannot realise the full value of their investments due to these delays. Mr. Krakani highlighted that pension earnings directly depend on the level of contributions. Therefore, lower salaries and delayed payments inevitably result in lower eventual pensions. CLOGSAG urges the Government to address salary disparities and implement a fair and equitable pension system. This will ensure all public sector workers receive decent retirement incomes, upholding the spirit of International Workers' Day.