Authorities at the Social Security and National Insurance Trust (SSNIT), have detected and deleted over six thousand ghost names from the payroll, leading to a saving of GH¢20 million for the Trust, as at September, this year.
According to the company, the exercise has yielded result and has trimmed the Pension payroll by about GH¢ 2.7million every month, and this benefit accrues monthly to the Trust.
Surprisingly, some pensioners, who are alive, have been affected by the exercise with their names deleted. However, SSNIT said, it had an account with the Bank of Ghana (BoG), from which it restored the monies of those who were later proven to be alive.
The Director-General of SSNIT, Dr. John Ofori Tenkorang, made these known at a media engagement event with some selected editors and senior journalists at the La Palm Royal Beach Hotel, Accra last Thursday.
The SSNIT boss, also stated that over GH¢2 billion, has been paid to some 189,549 pensioners and other beneficiaries in 2017 alone.
“A total of GH¢ 2.2 billion was paid to 189,549 pensioners and other beneficiaries in 2017 as compared to a payment of GH1.7 billion to 74,164 pensioners and other beneficiaries in 206. This is an increase of 229.41% of the previous year’s benefit pay outs”, SSNIT boss stated.
According to him, the total investments of the Trust’s assets as at September 2018 was GH¢9.38 billion, representing a growth of 2.4 per cent in asset value; as against that of September 2017 value of GH¢ 9.16 billion.
He said SSNIT was making significant gains on its investments and other endeavours following the prudent internal and external management and cost saving practices it had been implementing since 2017.
On the financial gains, he explained that Trust’s investment portfolio registered a 5. 77 per cent real returns in 2017; as against -5.93 per cent the previous year. The performance, he said exceeded the actuarial target of 3.25 per cent.
On the Trust’s Treasury Policy, the Director-General said under the revised policy, some funds had been invested at Treasury bill rates plus 5.3 per cent, even though it had targeted to invest for the T-bill rates plus a minimum of three per cent. Prior to 2017, the Trust invested funds with the commercial banks and financial institutions for T-bill rates plus one per cent.
Dr Ofori-Tenkorang stated: “At the end of 2017, value of our cash and near-cash instrument stood at about one billion Ghanaian cedis as opposed GH? 2.17 million at the end of 2016.
“The value of the Trust’s assets, increased by GH¢1.376 billion in 2017 from GH¢8.4 billion to GH¢9.776 billion cedis; as against a decrease of GH¢404.481 million in 2016”.
According to SSNIT boss, the company would not invest in real estate again until it had rebalanced its accounts, while its Marketing Department was selling off some of the existing ones. On the internal measures, he said, a significant reduction in foreign travels and accommodation expenses, had resulted in only GH¢1.57 million being spent out of the budgeted GH¢8.34 million.
Additionally, the Director-General said:” A recent renegotiation of agreements of some ICT infrastructure, support and license fees has resulted in a savings of $ 8.52 million dollars to the Trust, about half of this a recurrent expenditure.
“A newly signed Service Level Agreement for three years is saving the Trust two million US dollars compared to the previous Maintenance Contract. Also an amount of $ 15, 281,176.87 and GH? 16,091,579.46 are to be claimed as refunds from one of the IT Solution vendors”.
Dr Ofori-Tenkorang said the Trust would continue its drive to increase its membership and announced that it would rope in the low income earners in the informal sector with a tailor-made programme.