Set up a pension management body
Posted Friday, March 15 2013 at 02:00
The media has been awash with stories of pensioners who have made the dreaded journey to the ministry for many years with no success.
Many public sector pensioners have been subjected to untold suffering at the hands of some highly-incompetent and inherently corrupt Public Service officials.
The ministry is unable to pay out pension benefits to beneficiaries in a timely manner and in the correct due amounts. The media has been awash with stories of pensioners who have made the dreaded journey to the ministry for many years with no success.
The government should set up a fully-funded defined pension plan or defined contribution scheme for public servants to which employee and employer contributions will be remitted.
The management of the fund could be outsourced to a licensed asset management firm which would report to the trustees appointed by the beneficiaries of the pension scheme.
It is essential that the Scheme must be fully autonomous and properly regulated once it is put in place.
Government officials should not have any decision-making roles. Independent audits and actuarial valuations should be conducted annually as part of the accountability mechanisms.
These measures could resolve the current mountain of challenges facing public service pensioners.