The Civil and Local Government Staff Association, Ghana (CLOGSAG) has ignited the hopes of members to own a primary home while in active service by launching a new housing scheme, ‘Pempamsie Housing Scheme”.
The new scheme will allow members to secure funding to begin or complete the construction of permanent places of residence.
The ‘Pempamsie’ Housing Scheme, in partnership with Hedge Pensions Trust, gives members a minimum mortgage of GHS 50,000.00 to undertake building projects in phases.
The scheme is aimed at reducing the housing burden on workers in active service or after retirement.
Speaking at the event, the Minister for Employment and Labour Relations, Mr. Ignatius Baffour-Awuah, lauded the idea and stated that the scheme was born out of discussions during Domestic Debt Exchange Programme (DDEP) engagements between the government and various labour unions.
Mr. Baffour-Awuah said investment opportunities regarding pension funds in recent times have been flexible, and he therefore challenged managers of pension funds to adopt schemes that will be beneficial to members.
Singing praises of CLOGSAG and Hedge Pensions Trust for the initiative, workers always demanded higher salaries because about one-third of their incomes are spent on rent and accommodation.
That is why I see the new housing scheme as hope for civil servants to build a reliable place of their own”, and to some extent reduce the demands made by workers on the government.
He lauded GCB Bank for being a part of the scheme and asked the leadership of CLOGSAG to carefully roll out the plan, so it did not adversely affect the financial standing of members.
The Minister advised potential beneficiaries to be objective and not ”rush” the Scheme, which he said had been well-packaged.
The Executive Secretary of CLOGSAG, Mr. Isaac Bampoe Addo, commended Hedge Pensions for taking steps to implement the provisions under Sections 103 and 114 of the National Pensions Act, 2008 (Act 766).
Mr. Addo said the acquisition of a primary residence is not an event but a process. There could be a situation where a contributor may need assistance to complete his or her primary residence.
“There could be a situation where the person needs to acquire a plot of land to build a primary residence. Again, there could be a situation where a member could use his or her benefits to secure a mortgage or purchase a primary residence.
“It is within this context that loans will be provided under the Pempamsie Housing Scheme,” he stated.
He revealed that the Scheme had the approval of the National Pensions Regulatory Authority (NPRA) and that beneficiaries must be contributors to the CLOGSAG Fund and the Hedge Master Trust Occupational Pension Scheme (Tier 2).
The President of CLOGSAG, Mr. Benjamin Otto, summed up the initiative as good news to all contributors of the ‘Pempamsie’ Tier 3 Pension Fund as it would offer beneficiaries the opportunity to begin the process of owning a primary residence of their own.
