Prior to the reportage from JoyNews, the question of whether it was even worth it to pay your SSNIT worried many Ghanaians.
There are several stories of individuals who retire to get peanuts from their SSNIT contributions. Let’s ignore delays in payments and other frustrating circumstances that pensioners go through just to receive their contributions.
When it was reported that the SSNIT reserve would be depleted in 12 years, I expected a good and transparent response from SSNIT. Unfortunately, the rejoinder release only fuels speculation and doesn’t put scepticism to rest.
It will be helpful to SSNIT to publish the details of their reserves and the asset portfolios in which pension funds have invested (proof-of-reserve). This approach will demonstrate transparency from SSNIT and provide reassurance to pensioners.
It is not enough for SSNIT to say that they have enough funds to pay accruing benefits or that they have not defaulted on payment since its establishment.
In addition, it is unnecessary to claim that pension payments are not funded by the reserve because employers’ contributions and investments in pension funds form part of the pension reserve. Generally, pension benefits are paid from pension reserves.
SSNIT must show transparency and proof of reserve. This way, SSNIT will demonstrate as an institution that it holds assets that can pay pension benefits to pensioners beyond 2036. Anything less than it is susceptible to speculation and a reduction in the level of trust employers may have in SSNIT.
Facta, non verba
Thank you
ARTICLE BY:
Nathaniel Dwamena
He is a free-market policy analyst and president of the YAFO Institute. He engages in activities that promote civil liberty and economic freedom in Ghana. He has a background in law, geography, and economics.
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