SSNIT reassures pensioners of Scheme’s strength and sustainability

Story: By Isaac AIDOO, Accra

The Director General of the Social Security and National Insurance Trust (SSNIT), Mr. Kofi Bosompem Osafo-Maafo, has provided assurances to pensioners regarding the continued strength and sustainability of the SSNIT pension scheme.

Speaking at a well-attended forum for pensioners in Accra, Mr. Osafo-Maafo underscored SSNIT’s dedication to ensuring the financial security of retirees, acknowledging the essential role they play as key stakeholders.

He began by emphasizing that SSNIT holds its responsibility to pensioners in the highest regard, describing it as “a most sacred one.” “Our pensioners are at the top of all our stakeholder groupings,” he said, noting that although SSNIT has held routine engagements with pensioners in the past, this particular forum was special, as it demonstrated the institution’s unwavering commitment to their well-being.

Commitment to Pensioners

The theme of the forum, “Our Promise, Your Security,” reflected SSNIT’s dedication to safeguarding the trust pensioners have placed in the institution. Mr. Osafo-Maafo assured pensioners that SSNIT’s promise to provide financial security in retirement was not just a slogan, but a core guiding principle in the trust’s operations. He stressed that the institution’s focus remains on ensuring that pensioners enjoy the peace of mind and security that come with receiving reliable pensions.

“We are committed to transparency, open communication, and addressing your concerns,” Mr. Osafo-Maafo told the pensioners, adding that the forum would serve as an opportunity for in-depth discussions on important issues relating to the SSNIT scheme. These discussions, he said, were crucial for addressing the evolving concerns of pensioners, especially given the challenges faced by pension schemes worldwide.

Global Pension Challenges and SSNIT’s Strength

Acknowledging the global challenges that pension schemes face, Mr. Osafo-Maafo pointed to factors such as changing demographics, funding issues, economic fluctuations, and political pressures that have affected pension systems in various countries. Many nations, he noted, have been forced to increase retirement ages or move away from final salary pension schemes due to the financial strain on their systems. However, he proudly described SSNIT as a “final salary pension scheme” that operates on a defined benefit basis, ensuring pensioners receive pensions based on their highest earnings during their best three years of service.

Despite the difficulties, Mr. Osafo-Maafo assured pensioners that SSNIT’s scheme remains strong. He highlighted that as of August 2024, SSNIT had disbursed over GH¢3.7 billion in pensions to more than 250,000 retirees across the country. This, he said, underscores the institution’s financial strength and its commitment to delivering on its promises.

Focus on Sustainability and Expansion

Mr. Osafo-Maafo outlined various measures SSNIT has implemented to ensure the scheme’s long-term sustainability. Key among these efforts is the expansion of coverage to include self-employed workers, who make up a significant portion of Ghana’s labor force but often do not participate in formal pension schemes. He described the expansion as a crucial step toward creating a more inclusive pension system that offers retirement security to all workers, regardless of their employment status.

In addition to expanding coverage, SSNIT has taken proactive steps to manage costs better, improve contribution collections, and prudently manage investments to generate returns that support the scheme’s financial health. Mr. Osafo-Maafo highlighted the trust’s successful engagement with the government on resolving arrears, which has also bolstered the scheme’s stability.

“Our financial performance is improving,” he noted, pointing to the surplus position SSNIT has maintained since 2021. Despite the challenges posed by the COVID-19 pandemic, SSNIT achieved a surplus of GH¢230 million in 2021, which has continued to grow in subsequent years. By 2024, the institution has recorded a significant surplus, driven by a combination of strong net investment income, improved contribution collections, and effective cost management.

Call for Pensioner Support

Mr. Osafo-Maafo emphasized that while SSNIT continues to strengthen the scheme, the support and trust of pensioners remain invaluable. He encouraged them to continue their active engagement with SSNIT and to serve as ambassadors for the scheme within their communities. By sharing their positive experiences and encouraging more people, especially self-employed individuals, to join the scheme, pensioners can help build a stronger future for all workers in Ghana.

“It is our humble hope that you leave here today reassured of SSNIT’s ability to continuously pay your pensions for many years to come,” Mr. Osafo-Maafo said, expressing his gratitude for the trust and confidence pensioners have placed in the institution. He urged them to leave the forum not only with peace of mind but also with a sense of responsibility to promote SSNIT’s benefits to others.

Conclusion: A Shared Commitment to the Future

Concluding his address, Mr. Osafo-Maafo reaffirmed SSNIT’s commitment to delivering on its promises, ensuring that the institution continues to provide reliable pensions and expands income security to more individuals. “Our promise, your security” is a guiding principle that will drive SSNIT’s efforts to build a stronger, more inclusive pension system for the future.

The forum provided a platform for pensioners to express their concerns, ask questions, and engage directly with SSNIT’s leadership. With a focus on open communication, transparency, and improvement, Mr. Osafo-Maafo assured the pensioners that SSNIT remains committed to their welfare and to building a more secure future for all its members. The pensioners expressed appreciation for the forum, noting that such engagements provide them with a sense of belonging and confidence in the scheme. Many left the event reassured that SSNIT is on a solid footing and continues to work toward a more sustainable and inclusive pension system.