President Akufo-Addo has assured organised labour that its members’ pension funds are safe as the government continues its Domestic Debt Exchange Programme (DDEP) in order to secure an IMF deal.
Speaking at the 2023 International Labour Day parade, he stated that the government is aware of the Program’s impact on workers and intends to explore other beneficial options within debt sustainability limits with the cooperation of both the government and organised labour.
He said, “In undertaking the Domestic Debt Exchange Programme, we have been very mindful of its potential impact on the pension funds of workers. We will not act in any way to short-change workers in protecting their pensions.”
“In this regard, within global risk management practice, the options should include diversifying the portfolio of pension funds from the current 70% in government paper to real sector investments including rail, housing, urban transportation, motorways and airport as is done by other pension funds,” he added.
This comes after Finance Minister Ken Ofori-Atta urged pension fund trustees in April to allow pension funds to be included in the government’s new proposed debt restructuring offer.
The Minister explained in a signed release that the new proposal aims to relieve the government’s cash constraints in the coming years while fully compensating the Pension Funds for the value of their current holdings.
However, many Ghanaians, including organised labour, objected to the request.
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