The Social Security and National Insurance Trust (SSNIT) has assured its contributors of settling all benefits due to them and their validly nominated dependents.
In a statement released by the management of the Trust, it noted that the Scheme presently has enough reserves to “ensure prudent management of funds to enhance the long term sustainability of the Scheme.”
The statement was in relation to an actuarial valuation report by the Africa Centre for Retirement Research (ACRR) in 2017 which noted that the government’s indebtedness to the scheme, growing numbers of pensioners, growing amounts paid pensioners, employer indebtedness, among others, continued to threaten the long-term sustainability of the defined benefit scheme as run by the trust.
The ACRR subsequently made a call to Parliament for the upward review of the current SSNIT contribution of 11 per cent and a law to mandate the scheme to present its actuarial valuation reports to Parliament for scrutiny to save the scheme from becoming insolvent.
The Centre also proposed to Parliament for persons with strong financial and investments backgrounds to be appointed as board members.
But in a response, the Trust, said it has taken note of the concerns raised by the ACRR and efforts are being made to address them accordingly.
Reacting to employer indebtedness raised by the ACRR, the Scheme urged employers to pay the social security contributions of their workers by December 14, 2021 to avoid paying penalties.
For instance, it said “as of September 2021, 7,951 criminal cases were pending in court against defaulting employers. Also, over 500 employers, including the Government, have arranged for terms of settlement.”
SSNIT indicated that the government since 2017 has paid GHS5.77 billion to clear social security contributions owed by successive governments.
Below is the statement by SSNIT…
SSNIT assures pensioners of regular payment of pensions
The Social Security and National Insurance Trust (SSNIT) has taken note of the concerns raised by the Africa Centre for Retirement Research (ACRR) and wishes to assure all stakeholders and the public that the SSNIT Scheme presently has enough reserves to pay all accruing benefits due Members and their validly nominated dependants.
Managers of the Scheme assure that the concerns raised in the 2017 actuarial valuation report which was referred to by ACRR are being addressed. Key among these concerns is the debt owed to the Scheme 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. Management of SSNIT initiates court action against defaulting employers who fail to take advantage of negotiations.
Management of the Trust has not relented in its efforts to retrieve all arrears owed the Trust by employers to improve the sustainability of the Scheme.
As of September this year, 7,951 criminal cases were pending in court against defaulting employers. Also, over 500 employers including the Government, have arranged for terms of settlement. It must be noted that the Government has since 2017 paid GHS5.77 billion to clear social security contributions owed by successive governments. SSNIT continues to actively engage the 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 (source: Goldstreet Business edition on Friday 3rd May, 2019).
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.
Issued by Management