An independent public policy research organisation or think tank—with the core aim of promoting libertarian ideas and free enterprise research—has challenged the Social Security and National Insurance Trust (SSNIT) to show proof of its reserve.
The Institute was responding to a report put together by the International Labour Organisation (ILO).
ILO is projecting the Social Security and National Insurance Trust’s (SSNIT) reserves to hit zero by 2036.
The report suggests that the woes of beneficiaries will begin by 2029, when contributions, investment income, and other income will begin to decrease and will no longer be sufficient to service the trust’s annual expenditures.
However, SSNIT has described the report as projections and assumptions.
SSNIT said that pension payments are not funded by reserves.
It added that there has been steady growth in contributions. This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme,” it further stated.
The scheme indicated that investment income has been healthy and would offset any unexpected deficits that may arise.
But responding, YAFO Institute said that when it was reported that the SSNIT reserve would be depleted in 12 years, it expected a good and transparent response from SSNIT.
Unfortunately, the rejoinder release only fuels speculation and doesn’t put scepticism to rest, President of YAFO Nathaniel Dwamena said.
In his statement, he said “It will be helpful to SSNIT to publish the details of their reserves and the assets portfolios pension fund have been invested (Proof-of-Reserve). This approach will demonstrate transparency from SSNIT and provide reassurance to pensioners.
It is not enough for SSNIT to say that they have enough funds to pay accruing benefits or that they have not default in payment since it’s establishment.”
Read the full statement below
SSNIT MUST SHOW PROOF OF RESERVE
Prior to the reportage from JoyNews, the question as to whether is it even worth it to pay your SSNIT worried many Ghanaians.
There are several stories of individuals who retire to get peanut from their snnit contributions. Let’s ignore delay in payments and other frustrating circumstances pensioners go through just to receive their contributions.
When it was reported that SSNIT reserve will be depleted in 12 years. I expect a good and transparent reponse from SSNIT. Unfortunately, the rejoinder release only fuels the speculation and doesn’t put skepticism to rest.
It will be helpful to SSNIT to publish the details of their reserves and the assets portfolios pension fund have been invested (Proof-of-Reserve). This approach will demonstrate transparency from SSNIT and provide reassurance to pensioners.
It is not enough for SSNIT to say that they have enough funds to pay accruing benefits or that they have not default in payment since it’s establishment.
In addition, it is unnecessary to claim that pension payments are not funded by reserve because employers contribution’s and investment of pension funds form part of pension reserve. Generally, pension benefits are paid from pension reserve.
SSNIT must show transparency and proof of reserve. This way SSNIT will demonstrate as an institution that it holds assets that can pay pension benefits to pensioners beyond 2036. Anything less than it is susceptible to speculation and reduction in the level of trust employers may have for SSNIT.
Facta, non verba
Thank you
President
YAFO Institute
By: Rainbowradioonline.com/Ghana
