SSNIT pledges sustainable pension management
The Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Bosompem Osafo-Maafo, has assured stakeholders of the Trust’s commitment to ensure prudent management of funds to enhance its long-term sustainability.
He acknowledged that while the Trust faced certain constraints, particularly regarding government payroll arrears, it remained focused on growing available resources to ensure sustainable benefits for pensioners.
“We are focused on maximising returns within the constraints we face, a major one is the government payroll arrears. Despite the challenges, we are doing our utmost to maximise returns from our available resources,” he said, dismissing doubts about the Trust’s sustainability.
Mr Osafo-Maafo was addressing concerns about SSNIT’s long-term viability at a forum dubbed: ‘SSNITposium’ in Accra last Tuesday on the theme: “Building a Knowledge-Based SSNIT.”
The forum aimed to strengthen ties with academia to help shape the future of Ghana’s pension industry.
It brought together academia and professional institutions including members of the University Teachers Association of Ghana (UTAG), Technical University Teachers Association of Ghana (TUTAG), Institute of Public Relations (IPR-Ghana) and various associations to discuss the challenges facing SSNIT and to explore innovative solutions that would strengthen the Scheme and boost public confidence.
He emphasised the crucial role of academic institutions as repositories of knowledge in contributing to the evolution of the pension sector.
He said the engagement strategy comes in response to recent public discourse surrounding the scheme and the International Labour Organisation’s (ILO) actuarial report.
“Academia has the ability to help us shape the pension industry going forward,” the Director General said, highlighting the importance of collaborative efforts in improving the scheme’s operations.
Performance
He revealed that SSNIT has recorded a 20 per cent increase in its investment income, growing from GH₵700 million in 2022 to GH₵844 million in 2023.
This growth, which he said underscores improved returns across the Trust’s diversified investment portfolio, spans key sectors of the Ghanaian economy.
According to him, the impressive performance could shape the Trust’s future investment strategies, and strengthen returns to secure the fund’s long-term viability.
He also highlighted SSNIT’s significant operational improvements over the years, particularly in technology adoption and service delivery, adding that “we work very differently now compared to what we were doing 10 or 15 years ago”.
Potential amendment
Mr Osafo-Maafo also addressed concerns about potential amendments to the Pensions Act, saying such action must involve the public and stakeholders inputs to address concerns and shape the future of pensions in Ghana.
He said while increasing pension payments was a priority, it must be addressed over the long term due to current limitations on the Scheme’s resources and the financial capacities of contributors.
Role of academia
In a speech read on his behalf, the Vice-Chancellor of the University of Professional Studies, Prof. John K. M. Mawutor, emphasised the critical role that academia plays in shaping public perception of SSNIT, calling for responsible and constructive criticism that would strengthen rather than undermine public trust.
Highlighting the importance of building a sustainable pension scheme for future generations, he said the Trust must incorporate the insights and recommendations from the discussions into future pension reforms, ensuring that the collective decision of the academic community would help shape the future of social security in Ghana.
For his part, the Area Manager for Accra North, SSNIT, Frank Molbila, said the complexities of Ghana’s social security system demanded innovative approaches that tapped into the wealth of knowledge within the academic and professional communities.