The Trades Union Congress (TUC) has called on the government to urgently address Ghana’s struggling pension system, warning that failure to act could lead to severe financial and social consequences.
In its proposals for the 2025 budget, the TUC renewed its demand for a stakeholder consultative meeting to address critical issues affecting pensions, including low coverage, inadequate benefits, and sustainability challenges. The union raised concerns about the government’s continued exclusion of security agencies from the pension unification programme, arguing that this undermines pension reforms under Act 766 and perpetuates inequalities in public sector retirement benefits.
One of the most pressing issues highlighted is the financial viability of the Social Security and National Insurance Trust (SSNIT). Actuarial evaluations conducted by the International Labour Organisation (ILO) in 2014, 2017, and 2020 all projected that SSNIT’s reserves would be depleted within the next decade unless immediate reforms are implemented. The most recent assessment in 2020 moved the projected depletion date from 2042 to 2036, signaling a worsening financial outlook.
The TUC also criticized the government’s failure to pay pension contributions for public sector employees, particularly contributions to Tier-2 schemes. The union revealed that billions of Ghana cedis in arrears remain unpaid, directly affecting the retirement benefits of workers and further weakening trust in the pension system.
Despite the introduction of the three-tier pension scheme under the National Pensions Act of 2008, pension coverage remains alarmingly low, reaching less than a fifth of eligible workers. Many pensioners receive less than GHS500 (US$50) per month, raising concerns about the adequacy of retirement income.
“The pension system has been plagued by low coverage, low returns on investments, inadequate benefits, and governance challenges,” the TUC stated. “While reforms were meant to enhance retirement income security, many workers retiring under the current system receive lower lump-sum benefits than they would have under the previous PNDCL 247 regime.”
The TUC urged the government to take immediate steps to rectify these issues before they escalate into industrial disputes. It emphasized that Ghana’s pension system must be strengthened to ensure sustainability and fairness, particularly for low-income workers and retirees who struggle to make ends meet.
