Some key members of the Civil and Local Government Staff Association of Ghana (CLOGSAG) have filed a writ at the Accra High Court seeking an order of interlocutory injunction to restrain its Executive Committee and the Controller and Accountant-General (CAGD) from further deducting ‘Pempamsie Tier 3 Fund’ contributions from their salaries.
The members claim that they object to the Tier 3 pension deductions from their pay and want the court to require CAGD to stop.
Additionally, the members claim that according to the National Pensions Regulatory Authority (NPRA), which was established by the National Pensions Act 2008 (Act 766) to regulate and monitor the operations of the three-tier pension scheme and ensure effective administration of all pensions in the country, the contribution is an optional scheme with monthly contributions of up to 16.5% of the employee’s basic salary.
Therefore, such deductions should have been considered and approved by Congress prior to implementation.
The complaint further claims that the 5 percent deduction was not adopted for discussion at the most recent CLOGSAG National Quadrennial Congress, which was held in January of this year.
The CLOGSAG members continue by stating that its Executive Secretary should have understood that the aforementioned illegal deductions were third-party transactions and required their signed approval.
The group calls the practice a violation of the terms of the contract and an assault on the rights of the workers. They request, among other things, that the court enjoin their Executive Secretary and Controller from receiving any further deductions, pay interest on the amount deducted from the date of the deductions made thus far from their account, and grant them an injunction against receiving any additional deductions.
Additionally, they want the court to order the defendant—whether acting alone or through assignments, employees, servants, or privies – to stop taking 5 percent of their base pay in violation of the law.