The Director-General of the Social Security And National Insurance Trust (SSNIT), Mr Kofi Asafo-Maafo, with his management have shared with members of the academic community how generous the Trust has been to contributors of the scheme.
The Social Security and National Insurance Trust (SSNIT) was designed by law to insure the income of public servants and the self-employed for retirement.
At a symposium organised for professors, lecturers, and senior staff of tertiary institutions at the University of Professional Studies Accra on 22nd October, the operations of SSNIT were laid bare to invite contributors for the improvement of the Scheme.
The Social Security scheme was first introduced in Ghana in 1965 and SSNIT was established in 1973 to manage the scheme. The scheme has gone through several reforms and the current National Pensions Act 2008 (Act 766) provides SSNIT with the mandate to manage the first of the three tier pension schemes in Ghana.
In the opening remarks the Director-General was pleased to mention that ‘SSNIT has professionally and dutifully managed the scheme which has over 249, 000 pensioners as at 16 October, 2024’.
“SSNIT was founded by 17 percent contribution to the basic salary of workers. It was reduced by the current Act to 11 percent of basic salaries. The minimum qualifying period came down to 15 years and the benefits remain unchanged. In essence the scheme has become more generous” said Mr Osafo Maafo.
In addition to the Director-General’s submission, presentations from Mr Joseph Poku – Chief Actuary, SSNIT and Mr. Richard Manu – SEED Manager, SSNIT explained how the SSNIT scheme replaces the part income of persons who have been declared incapable of working through the Invalidity Pensions due to permanent mental and physical disability.
The Invalidity Pension covers any active contributor who has not attained the mandatory retirement age. The Interesting part to this is that a person who may have enjoyed the Invalidity Pensions may return to the scheme upon recovering from their disability and enjoy pension when they finally reach the mandatory retirement age.
Even though SSNIT is required to pay pensions to pensioners for a maximum of 12 years, pensioners enjoy pensions for life or until they are called by their maker. However, pensioners who have exhausted the 12 year pensions are required to renew their status annually to continue enjoying their benefits. The Survivors lump sum is also another important benefit that SSNIT contributors secure for their dependants in the unfortunate event a contributor passes on before age 75 under the Act 766.
Some of the critical issues which were raised at the symposium include the sustainability and viability of the SSNIT Scheme which were reactions to the recent International Labour Organisation’s (ILO) report.
“SSNIT is going to be here long after I am gone and for decades to come. The sustainability of the scheme is not in doubt. The ILO report actuarial report was based on assumptions and the outcomes which they presented were not predictions but based on assumptions to give us a guide and on what we need to do. Or also some indicators on what could be the potential pitfalls moving forward.
There were previous actuarial reports which said we will be out of business in 2025 or some year which is now elapsed and what that essentially highlights is that SSNIT does not stand still. We continue to evolve” said the Director-General.
Concerns for the consolidation of SSNIT contributions from salaries and allowances of workers and the increment of SSNIT contributions came up as more participants began appreciating the need for higher contributions in order to enjoy better pensions. However, the managers of the scheme explained that such decisions require broader consultation from all stakeholders for consideration into the amendments of the SSNIT Act 766.
The Chairman of the event, Prof. John Mawutor – PRO Vice Chancellor of UPSA commended the Director-General of SSNIT for his active participation in communicating the activities and services of his outfit to his stakeholders. He also raised concerns with the retirement age amongst academia, underscoring the fact that experience plays a key role in the richness and contributions academics are able to make in the latter ages.
Prof. Mawutor urged the management of SSNIT to take into consideration the contribution participants made to enhance the service delivery and secure the pensions of their members for a comforting pension.
