ORGANISED LABOUR POSITION ON THE ALTERNATIVE OFFER FOR PENSION FUNDS EXCHANGE
At Organised Labour leadership meeting held today, Thursday, 3rd August 2023 at the Hall of
Trade Unions in Accra, the Alternative Offer For Pension Funds Exchange was discussed.
After an extensive deliberation of the offer, as stated in the Exchange Memorandum which was issued by the Ministry of Finance on 31st July, 2023, the meeting concluded that the terms stated in the Alternative Offer is better than the initial offer Organised Labour rejected in December 2022.
In particular, the Alternative Offer guarantees the following:
1) No loss in patrimonial value: this means bonds held by pension schemes will not incur any losses on their patrimonial value.
2) Tradability: the bonds can be actively traded on the secondary bond market.
3) Liquidity: there is assurance that coupons and maturities will be paid on time.
The leadership of Organised Labour, therefore decided that, since the alternative offer is voluntary the various boards of trustees of pension funds should independently assess the Alternative Offer and participate in the exchange based on their assessment and in the best interest of their members.
The meeting resolved that Organised Labour will closely monitor the implementation of the provisions in the Exchange Memorandum to ensure that government does not default in the payment of interests and principal when they fall due. In other words, Organised Labour will not tolerate default.
In the event that government fails to implement the provisions as stated in the Exchange Memorandum Organised Labour will advise itself.