Professor Ernest Kofi Abotsi, Dean of the UPSA Law School, has strongly advised the Social Security and National Insurance Trust (SSNIT) to uphold its independence and staunchly resist undue interference from the central government.
He urged SSNIT to actively cultivate public trust by operating strictly in the interest of its beneficiaries, managing public perception effectively, and ensuring its operations are demonstrably transparent to eliminate any cause for public doubt.
Professor Abotsi’s proposals were shared in a presentation titled “Future of Social Security in Ghana and Service Delivery in the AI Era”.
A core issue highlighted by the lecturer regarding SSNIT’s investment portfolio was the need “to stop loving Ghana too much.”
He posited that the nation of Ghana should not be SSNIT’s primary target, noting that the Trust sometimes misses its true objective by channelling funds into investments driven by the perceived needs of the state.
”SSNIT is supporting Ghana, and that is where the problem is. SSNIT is not for Ghana; SNNIT is for the beneficiary,” he asserted.
He explained that when SSNIT’s investments primarily benefit the state, the Trust inadvertently takes on the role of government, which contributes to issues of investment tailoring and political interference.
He further observed that governments are sometimes tempted to utilise SSNIT’s reserves—particularly during fiscal deficits—to enhance their image, thereby compromising SSNIT’s independent investment decision-making processes.
Professor Abotsi acknowledged that due to SSNIT’s governmental origins, its representation on key boards, and the appointment of crucial decision-makers by the government, conflicts of interest occasionally arise.
He stressed that while achieving complete independence from the central government will be challenging, SSNIT must relentlessly pursue it.
He recommended that SSNIT undertake a retrospective review to minimise, if not entirely eradicate, such influences.
Call for Stakeholder Engagement and Investment Impact Assessment
On investment diversification, he maintained that it is imperative for SSNIT to engage widely with stakeholders before making final investment decisions.
He suggested adopting a mechanism similar to the Environmental Protection Agency’s (EPA) requirement for Environmental Impact Assessments (EIA).
”Before SSNIT undertakes any major investment, perhaps SSNIT should conduct an Investment Impact Assessment, and that assessment should be submitted to stakeholders,” he proposed.
This measure, he explained, would involve inviting stakeholders to review feasibility studies and projections before a final decision is taken.
The approach, he believes, would significantly address the issue of public perception that SSNIT undertakes investments that are not commercially viable, even when people lack access to the financial figures.
Leveraging AI and Addressing Future Uncertainties
Professor Abotsi also advised SSNIT to leverage Artificial Intelligence (AI), while simultaneously being concerned about its disruptive potential.
The reason for caution stems from the fact that AI threatens to automate many jobs currently paying salaries.
He argued, “If AI should progress the way it is progressing, a few years from now, a lot of the jobs that people do, AI will be doing them… AI will not be paying SSNIT contributions.”
He warned that if, for example, one-third of current jobs were wiped out in the next 20 years, SSNIT’s contribution base would be severely affected.
He urged SSNIT to calibrate its operations to mitigate potential losses.
In other recommendations, he advised SSNIT to integrate its systems with the Ghana Revenue Authority (GRA), citing practices in other jurisdictions like Kenya.
He noted that as GRA expands its focus into the informal sector, SSNIT could leverage this integration to ensure no potential contributors are overlooked.
Reviewing Government Contributions and Pension Support
Professor Abotsi also raised the critical issue of government contributions. He suggested it is time to assess the adequacy of the government’s contributions, arguing, “Because the government may not be paying living wages, perhaps we can push the payment from the living wages bench to the pension bench because the government is already in default.”
To address the situation of low-income pensioners, he specifically proposed that the government should double the pension for anyone receiving less than Ghc1,000, arguing that the government failed to pay the individual a living wage during their active working years.
He stressed the necessity for SSNIT to confront uncertainties like long-term pandemics.
He cited the COVID-19 era and challenged SSNIT to determine how it would manage contributions if, for a significant period, Ghanaians were unable to work or if jobs were eliminated due to such crises.
He drew SSNIT’s attention to rising life expectancy, noting that since the scheme pays pensions until death, people living longer pose a funding challenge.
SSNIT must reassess its payment projections and calibrate accordingly, as average life expectancy has increased significantly from around 50 years in the 1990s and 2000s, he said.
By: Rainbowradioonline.com/Ghana
