The management of the Social Security and National Insurance Trust (SSNIT) has responded to the report published by the Africa Centre for Retirement Research (ACRR) and subsequently assured pensioners of regular payment of their pensions benefit.
A statement issued by the management of SSNIT stated that “has taken note of the concerns raised by the Africa Centre for Retirement Research (ACRR).” Therefore, it debunked the report and thus, assured all stakeholders and the public that the SSNIT Scheme presently has enough reserves to pay all accruing benefits due Members and their validly nominated dependants.
In the statement, managers of the Scheme reassured that the concerns raised in the 2017 actuarial valuation report, which was referred to by ACRR are being addressed. Key among these concerns, SSNIT noted, is the debt owed the Scheme by employers.
The Trust seized the opportunity to encourage and remind employers to pay the social security contributions of their workers by 14th of this month, December, to avoid paying penalties.
Nonetheless, the statement indicated that “where employers fail to do so, they have the option to negotiate terms of settlement. Management of SSNIT will initiate court action against defaulting employers who fail to take advantage of negotiations.”
Funds of Pensioners are Safe
SSNIT disclosed that management of the scheme is working around the clock to recover all funds owed the scheme. The funds, according to SSNIT, will help to sustain the scheme in the long run. To make sure the funds are collected, SSNIT indicated that it has sent hundreds of defaulters to court.
“Management of the Trust has not relented in its efforts to retrieve all arrears owed the Trust by employers to improve the sustainability of the Scheme. As of September this year, 7,951 criminal cases were pending in court against defaulting employers. Also, over 500 employers including Government, have arranged for terms of settlement.”
SSNIT
The pension fund managers averred in the statement that government of Ghana has paid over GHS5 billion in since 2017.
“It must be noted that Government has since 2017, paid GHS5.77 billion to clear social security contributions owed by successive governments. SSNIT continues to actively engage Government, the largest employer, to pay the contributions of its employees.”
SSNIT
On the issue of reforms which was highlighted by the ACRR report, SSNIT stated that “in 2019, the Director-General of SSNIT hinted that the Trust was consulting stakeholders for possible reforms in the administration and funding of the basic social security scheme.”
The Trust, therefore, assured all members and the public that it will continue to ensure prudent management of funds to enhance the long term sustainability of the Scheme.
What the ACRR Report Say
A research conducted by the Africa Centre for Retirement Research (ACRR) into the sustainability of the pension scheme, they urged parliament to as a matter of urgency, amend the laws on pensions to ensure that the Social Security and National Insurance Trust (SSNIT) is financially sound to contribute to the current and future generations.
According to the ACRR report, the 2014 assessment did not only certify that the current assets of the SSNIT scheme, together with future contributions, will not be sufficient to pay all future benefits and administrative and operational expenses over the projection period, but it also projected that the fund reserves were set to deplete in 2042.
