Kofi Bosompem Osafo-Maafo SSNIT Boss
The Social Security and National Insurance Trust (SSNIT) has taken action to clarify misinformation regarding its reserves.
The Trust indicated that the current funds are sufficient to meet its obligations to members, clarifying that pensions are not solely funded by reserves but also by contributions and investment returns.
A recent report from the International Labour Organization (ILO) raised concerns about SSNIT’s sustainability, suggesting that its reserves could be depleted by 2036, potentially impacting its ability to meet future financial commitments to beneficiaries.
The report pointed out a worrisome trend where administrative expenses related to pension fund management have been on a steady rise as a percentage of member contributions.
However, in a statement released on Friday, April 26, 2024, SSNIT management dispelled misconceptions about its financial standing and its ability to sustain benefit payments beyond 2036.
Highlighting the consistent growth in contributions, SSNIT attributed this positive trend to demographic factors and efforts to onboard new employers and contributors.
The Trust also assured that its investment income remains robust and would mitigate any unforeseen shortfalls.
It reaffirmed its steadfast commitment to ensuring the timely disbursement of pensions to its beneficiaries, emphasizing that it has maintained a flawless record of pension payments since 1991.
Regarding government contributions, SSNIT confirmed that the government is current with payments on behalf of its employees, with mechanisms in place to address any outstanding contributions.
“We want to assure all members and the public that we are committed to prudently managing the Fund to meet our benefits payment obligations well beyond 2036,” the statement affirmed.
By Prince Fiifi Yorke