SSNIT clarifies ILO’s report findings

The Social Security and National Insurance Trust (SSNIT) has clarified the findings of the International Labour Organisation’s (ILO) report, which suggests that the Trust may be unable to meet its obligations by 2036 due to dwindling reserves.

The report indicates SSNIT’s average return on total assets from 2008 to 2020 was 12.2%, which it contends will no longer suffice to cover annual expenses, including pension payouts.

Responding to the ILO report at a press conference in Accra today, the Chief Actuary at SSNIT, Mr. Joseph Poku, said the report’s assessment is based on speculative assumptions, adding that the trust is well-positioned to continue disbursing benefits well beyond 2036.

He, however, added that the report calls for a contribution increment by 16 percent to make the scheme better and of higher quality. But the current scheme contributions are about 11 percent, and the scheme management hasn’t been able to comply with such a directive because it takes time, law, Parliamentary approval, and stakeholder engagement to settle on a fixed figure.

He therefore said SSNIT has already put the right measures and mechanisms in place to ensure an effective and safe scheme without law enforcement. Furthermore, we have applied technology in our operations for efficient delivery.