Financially resilient SSNIT paid pensioners GH₵19.4bn in 5 years

By Newscenta On Jul 16, 2024

The Social Security and National Insurance Trust (SSNIT) has a positive balance of GH₵5.7 billion (GH₵5,719.51 million) from the contributions collected in five years.

GH₵25.2bn contributions in 5 years
The Trust collected GH₵25.2 billion (GH₵25,200.89 million) contributions collected between 2019 and 2023.

GH₵19.4bn benefits paid in 5 years
However, it paid GH₵19.4 billion (GH₵19,481.38 million) benefits during the period.

2019 contributions and benefits paid
In 2019, SSNIT collected GH₵3.3 billion (GH₵3,382.8 million) contributions while it paid GH₵2.9 billion (GH₵2,945.72 million). This leaves a positive balance of GH₵437.08 million.

2020 contributions and benefits paid
The Trust in 2020 collected contributions of GH₵5 billion (GH₵5,031.00 million) but paid GH₵3.3 billion (GH₵3,302.77 million) resulting in a positive balance of GH₵1.7 billion (GH₵1,728.23 million).

2021 contributions and benefits paid
In the same vein, GH₵4 billion (GH₵4,079.10) was collected in 2021 but the benefits paid was GH₵3.6 billion (GH₵3,618.81 million).
This leaves a positive balance of GH₵460.29 million.

2022 contributions and benefits paid
In respect of 2022, GH₵4.1 billion (GH₵4,168.17 million) was paid as benefits from the GH₵5.8 billion (GH₵5,827.00 million) contributions collected resulting in a positive balance of GH₵1.6 billion (GH₵1,658.83 million).

2023 contributions and benefits paid
In 2023, the Trust collected GH₵6.8 billion (GH₵6,880.99 million) but paid GH₵5.4 billion (GH₵5,445.91 million) resulting in a positive balance of GH₵1,435.08 million.

Active membership rises from 1.6m to 1.9m
The active member figures for SSNIT during the five years are 2019 (1,625,255), 2020 (1,633,505), 2021 (1,734,168), 2022 (1,843,833) and 2023 (1,951,494).

88,640 listed establishments
Data from SSNIT shows that as of December 2023, 88,640 listed establishments are in the books of the Trust.

An Actuarial Valuation Report is done every three years in line with the National Pensions Act 2008, Act 766, Section 53 (2), which mandates the Trust to obtain external actuarial valuation on the Scheme at least once every three years.
The recent International Labour Organisation (ILO) Actuarial Valuation Report, which was the 12th external report on the SSNIT Pension Scheme, was to give the telescopic view of what was possible (not certain) to happen in the future based on the set of assumptions used in the exercise.
The 2020 ILO Actuarial Valuation Report on SSNIT did not mean the Trust would collapse in 2036.
Assumptions in the current ILO 2020 Actuarial Valuation Report was not different from what was made in 2011, 2014, and 2017 which said the reserves of the Trust would be depleted in 2019, 2042 and 2038, respectively
In spite of that assumption, SSNIT remains “finically healthy” and with the current contribution rate of 11%, the Trust is able to meet its financial obligations.
SSNIT had already taken measures to address the long-term sustainability of the scheme including deactivation of ‘ghost’ pensioners from the payroll of the Trust, expanding coverage of the scheme to cover informal sector workers and the self-employed.