The President of the Ghana National Association of Teachers (GNAT) has expressed deep concern over the recent report by the International Labour Organisation (ILO) regarding the depletion of the Social Security and National Insurance Trust (SSNIT)’s financial reserves.
Rev. Isaac Owusu emphasised that every worker in the country should be alarmed by this report, as it signifies a significant threat to the financial commitments made by SSNIT to its beneficiaries.
According to the ILO report, SSNIT’s reserves are projected to be completely depleted by 2036, based on its actuarial valuation.
SSNIT, which initially operated as a Provident Fund providing coverage for accidents, old age, disability, and death, transitioned into a Social Insurance Pension Scheme governed by the PNDC law 247 in 1991.
Since then, SSNIT has played a crucial role in providing financial security for retirees, covering approximately 1.6 million Ghanaians, representing about 16% of the country’s workforce as of 2020.
However, in recent years, the administrative expenses of managing pension funds have been increasing steadily, consuming a larger portion of member contributions.
This trend raises concerns about how effectively these funds are being utilized for the benefit of the beneficiaries.
The report indicates that from 2008 to 2020, the average return on total assets was 12.2 per cent, with a real average return on assets of only 0.9 per cent after adjusting for inflation.
Reacting to this development on JoyNews’ AM Show on Monday, April 29, Rev. Owusu urged the government to take immediate action to implement measures that would revitalize SSNIT.
He also called on Ghanaian workers to advocate for their future, emphasising that failure to address this issue could have severe consequences for them in the future.
“I think the report from the ILO to the board of trustees of SSNIT should be of great concern to every worker in Ghana because the report reveals certain things that as workers we should be concerned about.”
“Apart from the government’s indebtedness, the second revelation is about the prudent investment that SSNIT ought to make.
“The third one which affects the worker and the worker must be concerned is the insurance earning which is very, very low and if you juxtapose these three revelations, it tells you that as workers we must be interested and concerned of this particular report.”
Source:Fiilafmonline/JoyNews
