Accra, April 6, 2017 – An eleven - member re-constituted Board of Trustees for the Social Security and National Insurance Trust (SSNIT), has been inaugurated by the Minister of Finance, Ken Ofori Atta.
Addressing the Board, which is the thirteenth since SSNIT was set up, Hon Ofori-Atta challenged the members to ensure that SSNIT engages in prudent investments, to ensure long term financial sustainability of the Scheme, which he noted, will ultimately restore public confidence in SSNIT.
The Minister noted that the Trust is faced with high and persistent debts and arrears from its public and private contributors in addition to issues such as sustainability of the SSNIT Scheme and expansion of coverage. Adding that a combination these challenges, among others, have resulted in the poor public image and perception of the Trust.
He also called on the Board to take full advantage of the improvements made in technology and automation of its business processes to improve upon its operations especially in the areas of expansion, Service delivery and inter-institutional collaboration.
Currently, SSNIT has over 170,000 pensioners on the Pension payroll and about 1,300 pensioners added on monthly basis. Employers he said, contribute 13% of employees’ basic salary, whilst employees contribute 5.5% of pretax income.
Hon Ofori-Atta noted further that there had been a reduction in SSNIT contributions after the introduction of the Three Tier Contributing Pension Scheme in January 2010. Available data indicates that the 2016 contribution was less than that 2015, contributions for the year 2016 amounted to GH₵1. 86 billion; down by 12% from the year 2015.
Also, SSNIT investment portfolio and performance exhibited a need for a closer review. The weak portfolio he said, has over the years yielded returns that are below expectations.
Government, he said, is determined to implement numerous policy initiatives which will involve reactivating the SSNIT Informal Sector Pension scheme.
This, he hinted, will include Government assisting the NPRA in enforcing compulsory enrollment by requiring proof of enrollment, similar to what is required of SSNIT’s enrollment, in order to meet certain statutory qualifications such as government contracts, and custom approvals.
He called on the Board to always act in the interest of contributors and represent the collective interest of the tripartite members of the Board, i.e. Labour (workers), Employers and Pensioners and the State.
The Chairman of the SSNIT Board, Dr. Kwame Addo-Kufuor on behalf of the Board thanked government for the opportunity offered them to serve mother Ghana.
Mr. Addo-Kufuor pledged that if the following interventions were effected it will go a long way in helping their tenure of administration to excel. He thus pleaded that government deal with the irregularities at SSNIT, the delayed payment of contributions to beneficiaries and bonds purchased that are most often not paid on time and without the interest accrued.
The Board Chairman also called for an extensive review by reputable assessors of SSNIT’s performance and structure. This, he said will provide a firm diagnosis of the problem and an appropriate remedy to be given.
Members of the Board swore the Official Oath and Oath of Secrecy. The other Members of the Board are; Hon. Abena Osei-Asare (MP), Alex Frimpong, Daniel Acheampong, Joshua Ansah, Prince William Ankrah, Mahamudu Assibi Azonko, David Ofori Acheampong, Benjamin Odoitei Asumang, Beatrice Zakpaa Vi-Sanziri, and Dr. John Ofori Tenkrang, (Director General of SSNIT).
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Source; Public Relations Unit