The Social Security and National Insurance Trust (SSNIT) has responded to concerns raised regarding the findings of the International Labour Organisation (ILO) 2020 actuarial valuation reports, emphasizing that the unfavourable projections are based on assumptions yet to materialize.
Mr. Joseph Poku, Chief Actuary of SSNIT, highlighted the importance of contextualizing the 2020 findings within previous external actuarial valuation reports that had made similar predictions. He noted that previous reports in 2011, 2014, and 2017 had forecasted scenarios where annual expenditures would exceed income and reserves would reach zero within certain timeframes.
Speaking at a press briefing, Mr. Poku reassured stakeholders that SSNIT had not defaulted on benefit payments since 2019, contrary to predictions in the 2011 report. He underscored the Trust's commitment to meeting its financial obligations and ensuring the sustainability of the pension scheme.
Addressing the 2020 report's prediction that SSNIT's reserve would reach zero by 2036, Mr. Poku emphasized that such projections were not unprecedented and had been observed in previous reports. He clarified that the purpose of external valuation reports is to guide sponsors and administrators in taking necessary actions based on findings and recommendations.
Mr. Poku outlined initiatives undertaken by SSNIT to enhance the scheme's financial stability, including the deactivation of “Ghost” Pensioners from the payroll, leading to significant savings. Other measures include mass prosecutions to reduce contributions in arrears and mass registration drives to increase membership and improve contributions collection.
He assured stakeholders that SSNIT is well-positioned to meet its financial obligations beyond 2036, citing ongoing efforts to increase contributions and contributors to the scheme. Mr. Poku reiterated that members' contributions are secure with the Trust, emphasizing its track record of financial responsibility and commitment to fulfilling its mandate.
In conclusion, SSNIT reaffirmed its dedication to ensuring the long-term sustainability of the pension scheme and urged stakeholders not to unduly alarm over projections but to focus on collaborative efforts to safeguard the welfare of beneficiaries and preserve the integrity of the social security system.
