The Social Security and National Insurance Trust (SSNIT) has painted a gloomy picture about the sustainability of the scheme saying the escalation in benefit disbursements was outpacing the rate of contribution collection.

The Director-General of SSNIT, Kofi Bosompem Osafo-Maafo attributed the phenomenon to irregular payments by the government being the largest employer.

He was speaking at the opening of a three-day 2024 Operations and Benefits Conference of SSNIT at Elmina on Wednesday, August 8.

The conference on the theme: “Sustaining the SSNIT Scheme through increased active membership and adequate contribution collections using appropriate technology,” is aimed at exploring the utilisation of technology to enhance the Trust’s service delivery.

Mr Kofi Bosompem Osafo-Maafo explained that the total benefits paid by SSNIT surged from GH¢941.27 million in 2014 to GH¢5,458,070,000.00 in 2023, while contribution collection rose from GH¢1,784,430,000.00 in 2014 to GH¢6,014,950,000.00 in 2023.

Over the period, benefit payments escalated by a compound annual growth rate of 21.5 per cent, whereas contribution collection only increased by 14.46 per cent, resulting in a scenario where the Trust was disbursing more than it was collecting.

He further stated that the irregularity in contribution payments for public sector workers, particularly payments on behalf of employees of the Controller and Accountant General’s Department, frequently faced delays.

“Considering that the Ghana government is the largest employer, it is evident that we will have numerous government workers retiring and seeking their benefits, placing a substantial burden on the Trust,” he noted.

Mr Osafo-Maafo further pointed out that the alterations introduced by the National Pensions Act 2008, Act 766, such as the reduction of funding from 17.5 per cent to 11 per cent and the decrease in the vesting period of the scheme from 240 months to 180 months, alongside enhanced benefits that extended the guaranteed period from 12 to 15 years, had further strained the Trust.

“We are indeed encumbered as a pension institution, and unless the Law is amended to rectify some of these issues, we will need to devise innovative strategies to mitigate the impact,” he emphasised.

Looking ahead, he stressed that ensuring the sustainability of the SSNIT Scheme for future generations was a significant concern for all stakeholders to enhance their circumstances and could be achieved through expanding coverage, enforcing compliance, prudently investing funds, and responsibly governing the Trust and its investments.

A cutting-edge technology will therefore be adopted for managing and maintaining precise, comprehensive, reliable bio and financial data on members while ensuring the adequacy and relevance of benefits,” he indicated.

The Deputy Director-General in charge of Operations and Benefits, Juliana Kpedekpo said the landscape of social security was rapidly evolving due to technological advancements, which have brought about convenience in service delivery and informed sophisticated stakeholders.

“The utilisation of technology will improve the visibility of our business operations and enable members and clients to receive real-time updates and access to account information.

“This measure not only establishes transparency in the Trust’s operations but also provides world-class service delivery, thereby fostering trust among members and stakeholders,” she added.

Read more @myjoyonline