The High Court in Accra has ordered the release of the second tier pension funds of public sector workers currently being held by the Bank of Ghana, to their custodian banks.
It has given the National Pension Regulatory Authority [NPRA] up to July 2 to ensure the completion of the transfer.
The court gave the order Friday after government sought an out of court settlement in the case in which it is battling the 12 labour unions as to who manages the tier two pension contribution of workers.
Meanwhile the court has asked the labour unions and government to immediately assist NPRA to set up its board.
Government has also been ordered by the court to pay all legal expenses, which the 12 labour unions incurred during the fight over who manages the second tier pension scheme.
Consequently, the unions have also up to June ending submit their bills to government for payment
Public sector workers across the country have been battling the government’s decision to manage their second tier pension funds on grounds that such a decision is against the National Pensions Act, 2008 (Act 766).
But the government disagreed with the unions, and thus filed a suit at the High Court, and after back and forth, the government Friday sought an out of court settlement.
“We are happy that at long last the second tier is going to start and our members contributions will be properly invested.,” Dr. Isaac Bampoe Addo, Lead Negotiator for the 12 labour Unions told TV3 after the court ruling.