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Business News of Saturday, 25 October 2014

Source: GNA

Don’t pay CLOSAG 2nd-tier pension fund until…- LGWU

The Local Government Workers’ Union (LGWU) on Friday asked government not to pay the second tier pension to the Civil and Local Government Staff Association of Ghana (CLOSAG) until membership of the two unions is clearly defined.

A statement issued on Friday by Mr Joe Boahen, General Secretary of the Union, said although the LGWU agreed to the payment of the 2nd Tier Occupational Pension Scheme to the workers groups, it would be unfair for government to go ahead to pay CLOSAG because of the impasse.

“…the LGWU takes serious exception particularly the payment of the fund to the CLOGSAG, which is one of the groups asking for the payment to be made to it.

The LGWU said the issue of membership was a major bone of contention, which had seen some members of the LGWU suffering double dues deductions from their salaries, and lately, some illegal deductions like CLOGSAG FUND.

The Union further explained that any payment made to CLOGSAG with regard to the 2nd Tier Occupational Pension Scheme Fund would have grave consequences for the LGWU members, who are at the Metropolitan, Municipal and District Assemblies (MMDAs).

“It is in this regard that the leadership of the Local Government Workers’ Union, LGWU is demanding an immediate suspension of the payment of the 2nd Tier Occupational Pension Scheme Fund to CLOGSAG. The suspension should be in force until the LGWU and CLOGSAG are able to clearly spell out their membership issues.

“The attempt by CLOGSAG to register members of LGWU under its Occupational 2nd Tier Pension scheme is a recipe for confrontation between the two groups,” the statement said.

It said the LGWU like other unions, were waiting to receive their licenses from the National Pensions Regulatory Authority (NPRA).