Pensions Under Siege: IMANI Raises Alarm Over Political Interference in Ghana’s Retirement System

Founding President and CEO of IMANI Africa, Franklin Cudjoe, is raising a red flag to Ghanaians, calling attention to what he describes as “dangerous political interference” in the administration of pension funds under Ghana’s Tier-2 and Tier-3 pension system.

Franklin Cudjoe reveals that there is a politically motivated attempt to reassign pension fund contracts without proper consultation with workers. This situation, he says, poses a serious threat to the integrity of Ghana’s pensions architecture and the retirement security of millions of Ghanaian workers.

The Political Threat

The development necessitating this alarm, Franklin Cudjoe reveals, is the ongoing cancellation of existing pension management contracts and reawarding them to politically exposed firms.

At the center of these issues, the CEO of IMANI says, are some political appointees at State-Owned Enterprises (SOEs) who are perpetrating such acts.

 These actions, Cudjoe argues, violate the spirit and letter of Ghana’s National Pensions Act (Act 766) and disregard the basic rights of workers whose contributions form the bedrock of the system.

“Some political appointees at State-Owned Enterprises (SOEs) are taking unilateral decisions to cancel existing pension fund contracts and reassign them to politically favoured firms. These acts, executed without consultation with workers, are not only unlawful but set a dangerous precedent for the integrity and sustainability of Ghana’s pensions industry,” Franklin alleged.

Justifying why he finds the development outrightly wrong, he explained that under the three-tier system, particularly the Tier-2 Defined Contribution scheme, pension funds are not owned by employers or the government.

Rather, these are individually held trust assets, meaning workers, not their employers or political overlords, own the funds and bear the associated investment risks.

The Need for the Alarm: Pension Becoming Political Spoils

The IMANI boss sees the similarities in what is happening now and previous scandals involving SSNIT, where political mismanagement led to high-profile investment failures and massive losses.

IMANI cautions that if this “culture of patronage” is allowed to take hold in the Tier-2 and Tier-3 pension space, the nation risks triggering a systemic pensions crisis which can put the entire system and workers’ retirement in jeopardy.

Should this development be allowed to continue, he says it could erode public confidence, scare away investment, and destabilize Ghana’s financial sector once again.

He describes the happenings as a worrying trend since it is political reward schemes that override merit, performance, or fiduciary responsibility in favor of party loyalty and insider control.

“We saw this situation under the NPP government and we at IMANI wrote extensively to condemn it. These actions echo the mismanagement and politicization that plagued the Social Security and National Insurance Trust (SSNIT) in the past, where political interference led to high-profile investment failures and massive losses,” he recounted.

A Stern Warning to Regulators and Political Appointees

Of particular concern to IMANI is the alleged role of the National Pensions Regulatory Authority (NPRA). Franklin Cudjoe alleges that the CEO of NPRA is overstepping regulatory boundaries by instructing contract terminations, which is in contravention of  Act 766.

IMANI insists that such regulatory capture must not be tolerated, as it opens the floodgates to widespread abuse. He insists that politicians must be very far from workers’ pension funds.

“If we allow this patronage culture to infect the Tier 2/3 pension space, we risk triggering a systemic crisis in the pensions sector that would undermine confidence, endanger worker retirement security, and deter responsible local and international investment in Ghana’s financial sector,” he cautioned.

The Clarion Call: Workers Must Rise and Defend Their Future

IMANI is rallying labour unions, especially those within SOEs, to resist political tampering. Cudjoe is urging unions and workers to demand transparency and prior consultation before any changes to pension fund management are made.

He calls on the NPRA to assert its independence and fulfill its duty of protecting beneficiaries, not political interests.

In an appeal, Franklin Cudjoe states that Ghana’s pensions industry, now managing over GHS80 billion in assets, must not be allowed to fall prey to political greed. He references the painful memories of the Akufo-Addo government’s “haircuts” on pension assets, noting that the scars from that economic policy blunder still linger in the minds of many pensioners.

A Test for President Mahama

He concluded his statement with a direct challenge to President John Dramani Mahama, urging him to match his rhetoric on governance reform with decisive action.

“This is not just about contracts. It’s about the dignity of the Ghanaian worker, protection of Ghanaian enterprises, and the future of retirement income security in our nation.”

He signaled that IMANI’s campaign is only beginning. The next phase, he warns, will include publicly naming and shaming the individuals and firms allegedly involved in this attempt to hijack Ghanaian pensions.

IMANI says, for now, the public is watching. However, if the warnings go unheeded, Ghana may soon face another avoidable crisis, this time, at the heart of its retirement system.

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