Mr. Kofi Osafo Maafo, Director-General of Social Security and National Insurance Trust (SSNIT), has reassured stakeholders that SSNIT remains on a solid financial footing and is capable of fulfilling its obligations despite sustainability concerns.
This comes considering a critical report released earlier this year by the International Labour Organization (ILO), which projected that SSNIT’s reserves could be depleted by 2036, calling into question the long-term viability of the pension scheme.
However, speaking during “Pensioners’ Engagement 2024” in Koforidua on the theme “Our Promise, Your Security,” Mr. Maafo stated that SSNIT has never defaulted on pension payments since its inception.
“As of August, this year, SSNIT disbursed more than GH¢3.7 billion to over 250,000 retired workers, and we are projected to exceed GH¢4 billion by year-end,” he stated.
His remarks were aimed at alleviating public fears following the ILO’s findings which suggested the reserve ratio—indicating the durability of pension funds—could drop drastically from 3.4 in 2021 to zero by 2036.
Addressing over 200 members of the National Pensioners Association (NPA) gathered at the event, Mr. Maafo noted the organization’s impressive financial performance, reporting a surplus of approximately GH¢230 million in 2021.
He further indicated that in subsequent years, SSNIT has registered even greater surpluses, driven by effective management of investments and cost controls.
“We are committed to expanding our coverage to include the self-employed,” he added, underscoring SSNIT’s dedication to inclusivity and the need for all workers to have secure retirement options.
The forum provided a much-needed platform for dialogue between SSNIT and its retired members, enabling them to voice concerns and seek clarification on their benefits.
Responding to these challenges, Mr. Maafo reiterated SSNIT’s assurance that they are taking rigorous action to ensure the scheme’s sustainability.
“We are improving our strategies for collecting contributions, managing costs effectively, and making prudent investments.”
The engagement served to fortify the bonds between SSNIT and pensioners, reinforcing the trust’s commitment to providing reliable financial security.
“With your trust and support, we will build a stronger, more secure future together,” Mr. Maafo said.
The importance of safeguarding the SSNIT scheme for both current and future generations cannot be overstated.
It represents a promise to every hardworking Ghanaian that their contributions today will not be forgotten when they retire.
Mr. Jacob Adantey, the Local Chairman of the NPA, echoed these sentiments saying: “Pensioners are vital stakeholders in the conversation about pensions in Ghana. Our lived experiences speak volumes about the efficacy of the SSNIT scheme,” he stated.
He commended the ongoing tradition of open dialogue between SSNIT and pensioners, highlighting the importance of collaborative engagement to address concerns and improve the pension system.
Drawing attention to the critical role of the SSNIT scheme in providing financial security, Mr. Adantey acknowledged the need for continuous improvement while highlighting that the pension system has been a lifeline for many retired workers since its establishment.
“From 1991 to this day, we have received our monthly pensions without fail, reflecting the trust and reliability that SSNIT offers,” he said.
He elaborated on a concept known as the “contract of generations,” which underpins the pension system.
“This means those currently working help fund the pensions for retirees today. Any rash calls to dismantle the scheme would jeopardize this vital support structure,” he cautioned.
Mr. Adantey urged other stakeholders to welcome constructive discussions with SSNIT for a better understanding of the pension scheme and to dispel misconceptions.
He said he and his fellow pensioners were ready to share their positive stories about the SSNIT scheme with younger generations, inspiring them to view their contributions as investments for a secure future.
GNA