The Social Security and National Insurance Trust (SSNIT) says that as part of efforts to make the scheme more efficient, it has deactivated 18,000 names suspected to be ghost names from its payroll.
The scheme said the move forms part of its measures taken to address some issues for the long-term sustainability of the scheme.
Joseph Poku, Chief Actuary of SSNIT, announced this at a press conference that the scheme was constituted in response to the International Labour Organisation’s report predicting a depletion of the scheme’s reserve by 2036.
Mr. Poku described the report as assumptions and projections.
He said the main purpose of the valuation is to find out whether the financing of SSNIT is on course over the long term, not to exactly forecast numerical values.
According to him, due to the long-term nature of assumptions, absolute figures include a high degree of uncertainty.
He therefore underscored the need for the report to be interpreted carefully and that future actuarial reviews should be undertaken on a regular basis to revise actuarial assumptions in light of the actual experience of the scheme.
He said the trust is committed to taking measures across the board to ensure the sustainability of the scheme through the implementation of measures to improve returns, be more cost-effective, and effectively engage the government on its indebtedness.
The names of 18,000 people assumed dead have been deactivated as part of the measures taken to make the scheme effective.
This, he disclosed, has saved the scheme GHC 519 million.
He said the payment of pensions is supposed to go to those who deserve it.
He stated that some pensioners had died but their families had failed to inform them, so they continued to get benefits, but these issues had been resolved.
The law mandates that individuals aged 72 and above must inform SSNIT to receive a pension certificate, which is renewed annually to confirm their existence.
“If a pensioneer fails to do the annual renewal of the certificate, their names are removed from the system and presumed dead.
He, however, clarified that should that individual be still alive and inform SSNIT, their benefits would be paid to them.
“Through our effective system, we have been able to deactivate the names of 18,000 ghost names, and that has saved us GHC 519 million. The law requires that when you turn 72 years of age and older, you should inform SSNIT that you are still alive so that you will be issued a pensioner’s certificate, which is subject to renewal. If you do not come to review, you are presumed dead, and your name is deactivated.
If your name is deactivated and later it is established that you are still alive, your money would be released to what? We started doing this in 2018, and that has saved us GHC 519 million.”
He assured that the company would be able to pay pensions and meet its financial obligations beyond 2036.
By: Rainbowradioonline.com/Ghana
