The Social Security and National Insurance Trusts (SSNIT) says the scheme remains robust and resolute amidst a report by the International Labour Organisation (ILO) projecting a complete depletion of reserves by 2036.
This was contained in an actuarial valuation study of SSNIT’s viability.
According to the ILO, total income, including contributions, investment income, and other income, will no longer be sufficient to pay for annual expenditures, including benefit payments to pensioners, by 2029.
“Starting in 2029, total income (contributions, investment income and other income) is no longer sufficient to pay for annual expenditures. The reserve starts to decrease. During the year 2036, the reserve drops to zero,” the research emphasised.
However, SSNIT’s Chief Actuary, Joseph Poku, defending SSNIT’s sustainability, said that there was no need for fear.
Addressing journalists in Accra on Monday, April 29, he reassured contributors that the scheme remains well-positioned to cater to their needs.
“You cannot lift everything in there and say SSNIT is collapsing in the next 12 years; it is far from the truth. These are the processes: you take a period of 75 years, and then, based on reasonable assumptions, you make projections. But remember, if you alter the assumptions, the results will differ. So, don’t take the report at face value; consider it alongside the underlying assumptions,” he stated.
Mr Poku also clarified that despite occasional delays in government contributions, the government has fulfilled its commitments up to January 2024. Ongoing engagements continue to ensure sustained support.
“Monthly contributions have been paid up to January 2024,” he said, adding, “While we recognise that March payments should have been made by now, it’s important to note that the government has fully covered January’s contributions and part of February’s as well. Any delays are minimal, considering the overall timeline.”