The Social Security and National Insurance Trust (SSNIT), has dismissed reports suggesting that it will be unable to pay benefits by 2036 as a result of depletion in reserves.
A recent report by the International Labour Organisation (ILO) suggests that SSNIT reserves may reach zero by 2036, meaning it cannot meet its financial commitments to beneficiaries in the future.
The said report claimed that administrative expenses of managing pension funds have steadily increased as a percentage of member contributions to the scheme.
This trend suggests that a growing portion of resources intended for beneficiaries is being allocated to the operational costs of the scheme, raising the important question of how these funds are being utilized if not for their intended purpose.
But SSNIT in a statement on Friday, April 26, said it presently receives contributions and has enough funds to pay accruing benefits due members.
Secondly, the SSNIT pension scheme, as set up by ACT 766, is a partially funded scheme, and that pension payments are funded from contributions and returns from investments.
Again, it said that pension payments are not funded by reserves.
Furthermore, the Trust said there has been steady growth in contributions, adding, “This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme”.
“That investment income has been healthy and would offset any unexpected deficits that may arise”, it mentioned.
It continued that the government is current in the payment of contributions on behalf of its workers, and as such modalities are in place to service the outstanding contributions.
It also indicated that the Trust has never missed any pension payment since 1991, when the pension scheme was introduced.
The Trust therefore assured all members and the public that it will continue to ensure prudent management of the Fund to meet its benefits payment obligations beyond 2036.
“As we approach May Day, we wish all pensioners and workers in Ghana a Happy May Day. May God continue to bless us all. SSNIT, we deliver on our promise”, it concluded.
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Source: myjoyonline.com