The Director-General General of the Social Security and National Insurance Trust (SSNIT), Mr. Kofi Osafo-Maafo, has underscored the need for a frank national conversation on the sustainability of the national pension system.
He questioned whether the withdrawal of certain sectors from the formal pension scheme benefits the country in the long run.
“We need to ask ourselves, as a country, whether the contribution rate is sufficient. We must have passionate and educated discussions on preparing for pensions,” he stated.
Speaking at a forum with editors at Aburi last Friday, Mr Osafo-Maafo underscored the importance of ensuring that contributions are structured to support retirees throughout their lives.
“Our pensions provide benefits that exceed those of other investments. It’s vital that we focus on what truly matters and not get distracted,” he stated.
Mr. Osafo-Maafo also addressed the need for the consolidation of allowances for specific groups, such as the Navy, to mitigate risks and ensure affordability.
According to him, if SSNIT is restructured now, both the government and the Trust will be better positioned to support retirees.
He assured that his administration has continuously added value and improved the pension processes and stressed the need to provide the best pension system possible.
The Director General also stressed the need for transparency, public education and a broader understanding of the pension system’s intricacies.
SSNIT, he said, has nothing to hide adding, “It’s important that we understand the functions of the Trust and the benefits it offers.”
He also addressed misconceptions and stressed that SSNIT has been recognized for its transparency and responsiveness.
He argued that for people to claim otherwise is unfounded.
Explaining the prudence of SSNIT’s investment management, Mr. Osafo-Maafo indicated that the financial stability of the scheme is paramount.
“We manage investments prudently to ensure long-term benefits for our members,” he said.
The Director General stressed the importance of new contributors as the driving force behind investment returns that are crucial for the Scheme’s sustainability.
The services of SSNIT, he said, must therefore be efficient and seamless to satisfy existing contributors and also attract new members.
He explained the benefits of the pension scheme, saying, “Our model is similar to those in other countries, offering the best three years of salary as the basis for pension calculations. Joining SSNIT ensures a pension for life, with returns that exceed contributions.”
He encouraged Ghanaians to focus on relevant factors affecting retirement benefits, such as basic salary and contribution rates.
“If your employer divides your compensation into basic salary and allowances, it could affect your pension so understanding this is critical,” he stated.
Osafo-Maafo reaffirmed SSNIT’s commitment to delivering value to its contributors and urged the media to help educate the public about the scheme’s advantages.
SSNIT, he said, offers the best value proposition, and that must be preserved
