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 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 Government, have arranged for terms of settlement. It must be noted that Government has since 2017 paid GHS5.77 billion to clear social security contributions owed by successive governments. SSNIT continues to actively engage 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