The government has approved the payment of long-standing gratuity arrears owed retired personnel of the Ghana Armed Forces (GAF) under Constitutional Instrument (CI) 129, bringing closure to a five-year impasse over the implementation of the new retirement formula.
Payments would commence this week, following extensive engagements with the Ministries of Finance and Defence to resolve challenges associated with the gratuity formula under CI 129.
Under the approved arrangement, all personnel who retired from November 2020, would receive arrears based on the revised gratuity formula.
Payments would be made in four instalments between February 2026, to December 2027, under a clearly defined two-year phased implementation roadmap.
The first tranche is expected to be released by close of business on Friday.
Beneficiaries
A statement issued by the GAF in Accra yesterday, signed by the acting Director-General, Public Relations, Naval Captain Veronica Adzo Arhin, said in all, 238 officers and 2,155 soldiers were expected to benefit from the initial phase.
It indicated that all future retirements would be processed fully in line with CI 129 to prevent a recurrence of the backlog.
“This development brings closure to a matter that had remained unresolved since 2020, and ensures that affected personnel and all others who will retire subsequently receive their full entitlements at the correct rate,” the statement added.
Background
The arrears stemmed from the implementation of CI 129, a subsidiary legislation introduced in 2020, to amend the terms and conditions of service of GAF personnel.
The instrument allowed officers and soldiers to remain in active service for longer periods before retirement, with the aim of retaining experienced personnel and strengthening institutional continuity within the military.
However, the introduction of the policy substantially increased retirement and gratuity payments without corresponding budgetary allocations, leading to accumulation of arrears that exceeded GH¢1 billion and affected nearly 3,000 personnel across various ranks.
President’s directive
Speaking at the annual West African Soldiers Social Activities (WASSA) in Accra this year, President John Dramani Mahama acknowledged the funding gap and directed the Minister of Finance to immediately release funds to settle the outstanding obligations.
He explained that the failure to adequately fund the policy in the four years following its introduction had resulted in significant arrears.
Source:
www.graphic.com.gh