SSNIT Reserves Projected To Hit 0 In 12 Years Per International Labour Organisation Report

• The International Labour Organisation (ILO) has projected a complete depletion of SSNIT’s reserve by 2036.
• The International Labour Organisation made these findings in an actuarial valuation study of SSNIT’s viability
• It said starting in 2029, total contributions, investment income and other income will no longer be sufficient to pay for annual expenditures

The International Labour Organisation has predicted the full depletion of Social Security and National Insurance Trust's (SSNIT) reserves by 2036.

Per an actuarial valuation study of the viability of SSNIT by the International Labour Organisation, the critical cause of this development is the delay in payment by the government.

According to the International Labour Organisation, total income will not be enough for expenditures, including benefit payments to pensioners, by 2029.

Following a dependence on reserves for expenditures, the reserves would eventually drop to zero by 2036.

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This would mean the scheme can no longer pay pension benefits.

Of the GH¢9.35 billion owed SSNIT as 2021, 73.7% was due to late payments of contributions by the government.

The report emphasised that this led to a 1.3 percent drop in expected returns on investment made by SSNIT.

“Past experience suggests that, by not paying on time and not paying the interest income on delayed contributions, the Government shifts an important part of the cost to the private sector.”

Akufo-Addo shakes up SSNIT, names Osafo-Maafo's son as new boss

YEN.com.gh reported that President Akufo-Addo terminated the contract of Dr John Ofori Tenkorang, the Director-General of SSNIT.

He was replaced by the Deputy Director for Investments and Developments at SSNIT, Kofi Bosompem Osafo-Maafo, who is also the son of NPP stalwart Yaw Osafo-Maafo.

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This is the latest in a series of shakeups in the Akufo-Addo administration, beginning on Wednesday, February 14, 2024.

The presidency clarified that the contract of the former Director-General was not terminated because of malfeasance.

He said the president is satisfied with Dr Ofori-Tenkorang's performance as Director-General of SSNIT in the past seven years and touted the former SSNIT boss’ achievements in office as some of the most impressive the institution has witnessed.

Source: YEN.com.gh