The International Labour Organisation (ILO) has issued a sobering report on the prospects of Ghana’s Social Security and National Insurance Trust (SSNIT), cautioning that the fund’s financial stability is at risk over the next 75 years.
The study points to delayed government payments of workers’ contributions as a key factor exacerbating the scheme’s fiscal challenges.
As of December 31, 2021, SSNIT’s records showed a total debt of 9.3 billion cedis with a substantial 6.9 billion cedis owed by the government itself.
This staggering figure represents about 75 percent of SSNIT’s overall indebtedness, including overdue contributions and accrued interest charges.
The report shows that the significant debt owed by government has placed the pension fund in a delicate position, resulting in an annual decrease in SSNIT’s investment returns by 1.3 percent.
This diminishing return severely limits the funds available for SSNIT to invest, thereby jeopardizing its ability to meet benefit payouts annually.
