PSWU FUND: WHAT MEMBERS NEED TO KNOW?

PSWU FUND: WHAT MEMBERS NEED TO KNOW?

The Public Services Workers Union through the 2019 Delegates’ Conference Resolution and the Structures of the Union established the PSWU Fund.

The aim of the PSWU Fund is to address members’ welfare needs through granting of soft loans, hire purchase, partial withdrawal and lump sum savings towards retirement with an appreciable annual compound interest (year after year).

The PSWU Fund was launched in March 2022 to take effect, however the bureaucratic processes at the Controller and Accountant General Department delayed the implementation to June 2022.

Although the PSWU from 2020 has sensitized its members from the National to the Branch / Local level till date, not every member have a knowledge about the PSWU Fund. Henceforth, there is the need for members of the PSWU to be previewed to the following information about the Fund:

Existing members of the Union will be rolled on automatically. However, all members will be required to complete applicable forms to enable the Fund Secretariat to compile a database for operational and administrative purposes.

Every member of the PSWU Fund will contribute monthly savings of two percent (2%) of their basic salary to the Fund. There is also an option for additional savings which can be made upon request.

The PSWU Fund has a gestation or accumulation period of six (6) months. After it, members are entitled to soft loans, hire purchase, partial withdrawal and lump sum payment on resignation or retirement.

The annual rate of interest on members’ savings shall be determined by the Annual Shareholders Meeting (Expanded NEC) and it is expected to be at Treasury bill rate plus one or two percent (+ 1% or 2 %)

The interest on the loans will always be lower than commercial bank rates and this shall be determined by the Board of Trustees through the structures of the Union.

A member’s savings and affordability ratio will determine the quantum of loan one can receive from the PSWU Fund Secretariat.

The PSWU Fund shall be managed by the PSWU Fund Secretariat with the support of an External Financial Consultant appointed by the Board.

The PSWU Fund Secretariat will deploy digital solutions and mechanisms for members to access statement of their accounts on monthly or quarterly basis.

In conclusion, the National Secretariat and all the ten (10) regional Secretariats of the PSWU is ever ready to engage members (local, branch and divisions) and sensitize them on the PSWU Fund.