Gov’t settles GH¢2.5bn arrears in bonds to SSNIT

By Elizabeth PUNSU, Kumasi

Government has paid GH¢2.5 billion in bonds to cover arrears owed to the Social Security and National Insurance Trust (SSNIT).

This was disclosed by the Director-General, Kofi Osafo-Maafo, during a speech at a stakeholder engagement with pensioners in Kumasi.

“What we have done recently is that we have had some successes. The government, most recently, defrayed approximately two and a half billion Ghana cedis of the arrears in the form of bonds, which again helps the underlying position of the Trust,” Mr. Osafo-Maafo said.

He further mentioned that as of August this year, SSNIT had paid well over GH?3.7billion in pensions to over 250,000 retired workers in the country.

Mr. Osafo-Maafo reiterated commitment of management and staff of SSNIT to improving the underlying efficiency and sustainability of the scheme.

“In 2021, the net surplus for SSNIT was in a deficit position of around GH¢300million. In 2022, we turned this around to a net surplus of GH¢230million, and in 2023, we improved the net surplus to GH¢865million. For the first half of 2024, based on our preliminary data, we are on track to improve the net surplus again.

“SSNIT is a partially funded scheme; meaning it is driven by the net contributions of those currently contributing and complemented by net investment income. If you look at the net contributions, we are striving very hard to improve that; and the figures show we are doing just that. We are managing the investments prudently in order to improve the returns,” he stressed.

Meanwhile, the Ashanti Regional Chairman of the National Pensioners’ Association (NPA), Adarkwa Tuffour, delivering a speech at the event, mentioned that SSNIT has made life safer for most pensioners in the country. He added that for the past 33 years, SSNIT has never failed to pay pensions.

“It is essential to recognise that despite challenges, the SSNIT pension scheme has been a lifeline, providing security, dignity and hope to us retired workers. Since the scheme began paying monthly pensions in the early nineties, pensioners have been paid every single month according to what they have earned. From 1991 to date, SSNIT has never reneged on the payment of pensions to pensioners,” he said.

He, therefore, called on well-meaning citizens to disregard any negative rumours seeking to tarnish the image of SSNIT; and to do everything in their power to protect the scheme for future generations.

“SSNIT has been and continues to be a lifeline for thousands of Ghanaians. We must safeguard it, strengthen it and improve it. To this end, we must recognise and appreciate its value. The SSNIT scheme is more than just numbers on paper; it is a promise to the hardworking people of this country that when the time comes, they will not be forgotten. Because we, the pensioners of today, have not been forgotten,” he added.

 250, 000 persons to be enrolled onto SEED

The Social Security and National Insurance Trust (SSNIT) has projected that its Self-Employed Enrolment Drive (SEED) could see a surge in enrollments, potentially reaching 250,000 people in the coming year.

Since the campaign’s launch in May 2023, about 120,000 individuals have already been enrolled as of September.

SEED is an initiative aimed at expanding coverage of the basic National Social Security scheme to self-employed workers, ensuring they can retire comfortably and with dignity. The campaign seeks to redefine social security in the country, offering hope to self-employed workers that they too can enjoy a secure and comfortable retirement.

“Through our continued efforts to raise awareness, we’ve managed to enrol about 120,000 people as of September. We are optimistic that with ongoing sensitisation across various cities, we’ll reach approximately 130,000 enrollments by end of this year. Our target is to exceed 250,000 enrollments by next year. With each visit to towns, our message is spreading and growth is accelerating,” said Joseph Poku, Chief Actuary-SSNIT, in an interview with journalists during the Operation-A-Thon campaign in Obuasi.

Mr. Poku attributed the anticipated growth to the campaign’s geometric expansion, particularly through the Operation-A-Thon sensitisation tour that covers major towns across the country.

The ‘Operation-A-Thon’ (Ops-A-Thon) is part of SSNIT’s ongoing efforts to educate self-employed individuals about benefits of the SSNIT Scheme and encourage them to enrol. As part of this initiative, SSNIT staff are touring business hubs, markets and key streets in selected towns, distributing flyers and holding placards to raise awareness and encourage self-employed persons to join the scheme.

“This initiative is designed to help people access the valuable services SSNIT offers to all Ghanaians, particularly in the fight to curb or eliminate old age poverty. Through this outreach we’re speaking to as many people as possible, stressing the importance of preparing for retirement or times when they’re no longer able to work. SEED serves as a form of insurance, providing financial protection during old age and helping to ensure that people are not dependent on their families during retirement,” he highlighted.

Mr. Poku expressed confidence that continued public engagement and education will lead to greater understanding of SSNIT’s role and the importance of joining the scheme.

“We recognize that many Ghanaians are still becoming familiar with the work SSNIT does, and it won’t happen overnight. But we are confident that, through sustained efforts, people will come to see the value of joining the scheme. We remain committed to spreading the word and encouraging as many people as possible to join SEED, ensuring they benefit from a secure and comfortable retirement,” Mr. Poku added.

In addition to Obuasi, similar events have already been successfully held at Wa and Techiman in the Upper West and Bono East Regions, as well as Koforidua, Eastern Region, and Tarkwa, Western Region.

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