Connect with us

News

Workers Who Retire After 2037 May Not Receive Pensions – ACRR (SEE WHY)

Published

on

The Africa Centre for Retirement Research (ACRR) fears the Social Security and National Insurance Trust (SSNIT) may not be able to fully pay benefits of pensioners after 2037 if the latest actuarial valuation report is anything to go by.

The think tank asserted that the scheme is facing medium- to long-term sustainability danger.

Interacting with journalists on Wednesday, November 24, the Executive Director of ACRR, Abdallah Mashud, observed that if necessary steps are not taken, Ghana’s social security scheme will bend to its knees.

Mr Mashud cited how the 2014 actuarial valuation exercise pegged a depletion of SSNIT’s resources by 2042.

“Three years later, that is, the subsequent valuation in 2017, however, predicts that the reserves [will] deplete in 2037, five years earlier,” he told journalists.

“What this means is that if Parliament, policymakers and stakeholders do not undertake the necessary steps to address the imbalance in the social security finances through parametric and legislative reforms, the Trust funds are unable to pay full scheduled benefits on timely basis in 2037.”

Suggestions have been made for the retirement age to be increased from 60 years to 62 years, especially by 2037.

“ACRR is, however, of the opinion that, considering the SSNIT pensioners’ post-retirement mortality pattern, increasing retirement age by two years will result in more members dying in service, instead of in pension,” he said.

He called on government to rather pay up its indebtedness to SSNIT.

“Government indebtedness to the Trust continues to hurt the schemes compliance rates and scheme’s long-term sustainability.

“Delays in the payment of due contributions by government has been cited in the actuarial valuation reports as hampering the scheme’s level of investible funds.”

He fears the next actuarial valuation report may even pose threatening outcomes to pensioners and Ghanaian workers in general as a result of the effect of the Covid-19 pandemic.

“The next actuarial valuation report will be based on data for the period January 2018 to December 2020. Firstly, considering the economic impact of the Covid-19 pandemic on the financial markets, the Trust may as well report another fiscal year loss on its investments.

“Secondly, the rate of growth of the pensioner population continues to outstrip the corresponding growth rate of contributors. Evidently, the number of workers contributing to support a pensioner dropped further from 9 contributors per pensioner in 2013 to 7 in 2020.

“Therefore, based on income-expenditure dynamics among other considerations for the period 2018 to 2020 and its expected impact on reserves, the depletion date for the next valuation may come earlier than 2037.”

Eye witness to any social issue,occurrence or any form of information you would like to share,kindly send us a report via email : editor@modernnewsgh.com or via Phone +233246319949

News

John Mahama turns 63 today

Published

on

The 2020 flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, is 63 years today.

The former president was born on November 29, 1958, in Damango to a politically active family.

His father, Emmanuel Adama Mahama, served as a Member of Parliament as well as a regional commissioner in the government of Ghana’s first president, Kwame Nkrumah.

Wife of the former president, Lordina Mahama, has taken to social to celebrate her husband on the occasion of his birthday.

According to her, being the former president’s wife has been an incredible blessing to her.

“You have always made me proud as your wife. I thank God for your life and new age. Being your wife has been an incredible blessing to me. Our children and I pray that the Good Lord will continue to fill your heart with his presence and everlasting love. Happy 63rd, my love,” she said in a tweet on Monday November 29, 2021.

John Dramani is expected to seek re-election in 2024 to succeed President Nana Addo Dankwa Akufo-Addo’s administration having failed to do so in 2020.

He recently handed over a fully renovated dormitory block to his alma mater, Ghana Senior High School (GHANASCO) in Tamale on Friday, November 26, 2021.

Eye witness to any social issue,occurrence or any form of information you would like to share,kindly send us a report via email : editor@modernnewsgh.com or via Phone +233246319949
Continue Reading

News

Gov’t to use emergency funding request to run economy after rejection of 2022 budget

Published

on

Following the rejection of the 2022 Budget by Parliament on Friday, questions have emerged as to whether the development means an automatic logjam for government business.

According to experts in such rare situations, the disgraced Akufo Addo administration is permitted under Article 180 of the Constitution to resort to emergency funding.

Per Article 180 of the 1992 Constitution, if the Appropriation Act, which is the Bill passed by Parliament after approving the budget, is unable to come into operation at the beginning of a financial year, the President, can seek approval of Parliament to authorize the withdrawal of funds to run government business.

The “prior approval” that will be required from Parliament will be in the form of a resolution and the amount of money that the President can withdraw should be enough to run the country for three months at a time until the Budget is approved by Parliament

Therefore, if by January 2022, the budget is not passed by Parliament, President Akufo-Addo can seek approval from Parliament and withdraw money from the Consolidated Fund to meet government expenditure for three months.

If after three months the budget is still not passed, then the President can, with the approval of Parliament, do another emergency withdrawal.

On Friday, a one-sided Parliament rejected the 2022 budget on account of the Minority NDC’s unmet demand for the unpopular e-levy to be removed and for government to make allocations towards the Keta Sea Defense project.

Article 178 of the 1992 Constitution gives Parliament the sole authority to approve funds for the government’s expenditure. According to it, “no money shall be withdrawn from the consolidated fund” except the money has been authorised by an Appropriation Act, or by a supplementary estimate approved by a resolution of Parliament or by an Act of Parliament”

Eye witness to any social issue,occurrence or any form of information you would like to share,kindly send us a report via email : editor@modernnewsgh.com or via Phone +233246319949
Continue Reading

News

Five issues Minority wants captured in a revised 2022 Budget

Published

on

The Minority Caucus has highlighted five issues it wants a revised 2022 budget to address before it gives its support.

Parliament on Friday, November 26, 2021, rejected the 2022 budget after members of the Majority Caucus staged a walkout following disagreements over a vote on a last-minute request from Finance Minister, Ken Ofori-Atta to meet leadership of the house on the policy document.

Even though the Majority Caucus has asked Ghanaians to disregard the said rejection of the budget, the Minority has insisted that the document has been thrown out and there is nothing the Majority side could do about it.

In a statement issued on Sunday, November 28, 2021, and signed by Minority Leader, Haruna Iddrisu, the Minority wants government to abandon the proposed electronic transaction levy and Agyapa royalties deal in its revised budget.

The Minority also wants the government to provide solutions for the ravaging tidal waves in Keta in the Volta Region and also review the benchmark values on imported products.

“We hope the NPP government will do what is right and proper when considering a revised budget. The NPP Government should critically take on board the view of the Minority and sentiments of the Ghanaian populace and bring a Budget that is acceptable and address the issues of the general public. The NDC Members of Parliament have no issue with approving a Budget that addresses the generality of the concerns of the Ghanaian people.”

Read the Minority’s full demands below:

The NPP Government should rather concentrate on bringing a revised Budget that will, among
others, address the following:

1. Suspend the Electronic Transaction Levy (E-Levy): The Government should suspend the E-Levy and properly engage stakeholders to agree on a reasonable policy. How can mobile money payments, bank transfers, merchant payments, and inward remittances be charged 1.75 percent? The policy is not retrogressive, not pro-poor, and does not support the much-touted digitalisation agenda and cash-lite economy that we all yearn for.

2. Withdrawal of Agyapa: The NDC Minority will not support any collateralisation of our revenues, particularly mineral resources. The future of our country will be bleak if we continue in that regard. We cannot jeopardise the future generations of our country just for our present desires.

3. Provide for Tidal Waves Disaster: The Government should incorporate in its revised Budget adequate measures to address the issue relating to the Tidal Waves Disaster in Keta and other communities. The victims should be supported. And the Phase II of the Blekusu Coastal Protection Project must find space in the Budget.

4. Properly re-construct the wording relating to the Aker Energy:  Relating to GNPC acquisition of stake from Aker Energy and AGM Petroleum, the revised Budget should reconstruct paragraph 829 of the rejected Budget to reflect the decision of the House as captured on 6th August 2021 Votes and Proceedings of Parliament.

5. Review the Benchmark Value for Imports: Government should, in a revised Budget, reconsider paragraph 247 of the rejected Budget which sought to restore the Benchmark Values of imports by suspending the 50 percent discount on selected General Goods and the 30 percent discount on vehicles. Some concession should be given to the importers.

Source:citinewsroom.com

Eye witness to any social issue,occurrence or any form of information you would like to share,kindly send us a report via email : editor@modernnewsgh.com or via Phone +233246319949
Continue Reading

Download Our Android App

Connect With Us

Our Facebook Page

Trending 🔊

Copyright © 2019-2021.All Rights Reserved [ Built & Managed by The Modern Hub ]