Pension: Hilla Limann Technical University defaults on employees pension contributions
The Hilla Limann Technical University has defaulted on employees pension contributions.
The management of the Wa based Technical University has failed to pay statutory Tier One and Two pension contributions of casual employees to appropriate pension schemes for 12 months.
The Auditor General’s Report on the public accounts of technical universities and polytechnics for the period ending December 31, 2019, has revealed that management of the Technical university has failed to remit nine employees’ total pension contributions which amounted to GH¢7,312.68 to pension fund managers within that time.
The failure to remit the pensions resulted from the university’s acting Director of Finance’s failure to deduct employees 5.5 per cent contributions from their wages or salaries.The Director of Finance said it was as a result of that is why they could not remit the employer’s 13 per cent contribution for the employees.
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The failure on the part of the University means the affected persons risk not benefiting from both social security pension and the second tier mandatory pension.
The revelation came during the Public Accounts Committee (PAC) of Parliament meeting in Tamale to consider the 2019 Auditor General’s Report on some public institutions, including technical universities and polytechnics, in the Northern, Upper West, Upper East, Savannah and North East regions.
Dr James Klutse Avedze, who is the Chairman of the committee directed the management of the university to make necessary arrangements to pay the contributions due the employees within a week or risk the relevant sanction.
“We are giving you a one-week period to remit the affected persons’ contributions due them or risk being sanctioned,” Dr. Klutse directed.
The Director of Finance of the university, Karim Kuuri, in his response to the committee said the school had already initiated steps to pay all outstanding pension contribution arrears of the employees.
