The Social Security and National Insurance Trust (SSNIT) has assure all its stakeholders and the public that the scheme presently has
enough reserves to pay all accruing benefits due members and their validly
nominated dependants.
This comes after the Africa Centre for Retirement Research (ACRR) raised concerns about the ability of SSNIT to continue paying pension benefits in the next three decades. Those concerns were based on information contained in the 2017 Actuarial Valuation Report.
But in a statement, SSNIT said that the concerns raised in the Report, which was referred to by ACRR are being addressed. Key among these concerns is the debt owed the SSNIT by employers.
“The Trust encourages and reminds employers to pay the social security contributions of their workers by 14th of the ensuing month to avoid paying penalties. However, where employers fail to do so, they have the option to negotiate terms of settlement,” the statement said.
It said SSNIT often initiates court action against defaulting employers who fail to take
advantage of negotiations, adding that Management has not relented in its efforts to retrieve all arrears owed the Trust by employers to improve the sustainability of the Scheme.
According to the statement, as of September this year, 7,951 criminal cases were pending in court against defaulting employers. Also, over 500 employers including Government, have arranged for terms of settlement.
“It must be noted that Government has since 2017 paid GHS5.77 billion to clear social security contributions owed by successive governments,” it said. “SSNIT continues to actively engage Government, the largest employer, to pay the contributions of its employees.”
In 2019, the Director-General of SSNIT hinted that the Trust was consulting
stakeholders for possible reforms in the administration and funding of the basic
social security scheme.
The Trust therefore assures all Members and the public that it will continue to
ensure prudent management of funds to enhance the long term sustainability of
the Scheme.
