We can pay pensions and survive beyond 2036 –  SSNIT 

By Isaac AIDOO, Accra

The Social Security and National Insurance Trust, SSNIT says the scheme will be able to pay pensions and meet its financial obligations beyond 2036.

The Trust at a press briefing to clarify what it described as inaccurate reports of a near collapse of the scheme by 2036 said the study by the International Labour Organisation (ILO) projecting a complete depletion of SSNIT’s reserves by 2036 was only a prediction.

 Chief Actuary at SSNIT, Mr Joseph Poku explained that the ILO study which is carried out every three years as required by law, gave an overview of the scheme’s status, assets and liabilities and provides management of the Trust with ideas on measures to take to ensure the sustainability of the scheme.

Mr Poku recounted several cases where similar projections were made, including a 2011 report that predicted SSNIT would be un “The recommendations are not going to happen at all costs, that’s not what it is. So it gives you an idea that based on these assumptions, it’s likely to happen but there is no certainty. So, in 2011, it was projected that the scheme reserves will run or will be depleted by 2021 but we are in 2024 and we are still operating, “he explained.

 “The 2011 report said, among other things, that if contribution rates were not increased in the future, the annual expenditure on benefits and registration would exceed income from contributions and the funds from 2019 would see depletion,” he said.

According to ILO, total income including contributions, investment income and other income, will no longer be sufficient to pay for annual expenditures including benefit payments to pensioners by 2029.

Mr Poku assured workers and other stakeholders of SSNIT that the Trust was committed to taking measures across board to ensure sustainability of the scheme through the implementation of measures to improve returns, being more cost effective and effectively engaging government on its indebtedness. able to pay funds by 2019.

He disclosed that the Trust had been highly successful in the deactivation of “Ghost” pensioners from the pension payroll, resulting in GH₵519million being saved.

SSNIT, Mr Poku maintained had introduced mass registration, inspection and contributions collection exercise to increase membership of the scheme and improve contributions collection, which are two critical factors for the sustainability of the Scheme.

As a strategy to reduce contributions in arrears, the Trust had also introduced mass prosecutions and introduced flexible repayment terms for indebted employers (Negotiated Agreements).

This initiative has led to the reduction of contributions in arrears.

The Trust continues to engage government to ensure they are current on monthly contribution payments.

“SSNIT has adopted the annual reconciliation exercise with the Controller and Accountant General (CAGD) to determine the government’s indebtedness to the Scheme,” Mr Poku stated.