SSNIT disburses over GH¢3.7bn in pension benefits

The Social Security and National Insurance Trust (SSNIT) has paid out over GH¢3.7billion in pension benefits to more than 250,000 retired workers as of August 2024.

This payout demonstrates the trust’s continued commitment to ensuring financial well-being for pensioners across the country despite challenges faced by global pension schemes.

“Despite the challenges we’ve had, our SSNIT scheme remains strong,” said its Director-General, Kofi Osafo-Maafo.

He underscored the scheme’s stability and ability to meet its obligations to pensioners.

He stated that the trust continues to pay out pensions regularly and is in a financially healthy position.

Global pension schemes are often influenced by several factors – including demographics, funding constraints and political and economic climates. Some countries have responded by raising the retirement age and adjusting their pension systems away from defined benefit models. However, Ghana’s pension scheme, managed by SSNIT, has remained a defined benefit system that is based on a worker’s best three years of earnings.

While acknowledging that many countries have moved away from this model, the Director-General stressed how important it is to appreciate the structure Ghana has currently in place.

He expressed a strong focus on improving the scheme’s long-term sustainability. Several key initiatives have been put in place to enhance the scheme’s financial performance: including better cost management, improved collection of contributions and prudent investments. These measures, according to the trust, are already yielding positive results.

“We have taken rigorous steps on all fronts to ensure the scheme’s continued sustainability. The trust has been actively engaging with government to resolve issues relating to arrears. Success in these discussions has contributed to strengthening the pension system,” the Director-General noted.

“The trust’s financial performance has shown significant improvement over the past few years, particularly since the COVID-19 pandemic. After facing a challenging period, SSNIT recorded a surplus of approximately GH¢230million in 2021 – and subsequent years have seen even greater financial gains.

In 2023, the trust posted a more significant surplus; and current year-to-date figures for 2024 indicate continued positive growth. These financial improvements have been driven by a combination of net investment income, increased contributions and strict cost management,” he said.