Management of the SSNIT say, reserves are not used in paying pensions as being circulated in the media.
The International Labour Organisation (ILO) in an actuarial valuation study of the Social Security and National Insurance Trusts (SSNIT) viability projected a complete depletion of SSNIT’s reserve by 2036.
The report indicated “Annual contributions are insufficient to pay for all annual expenditures (benefits and administrative expenditures) throughout the projection period”
However in a press release issued on Friday April 26, 2024 management of SSNIT stated the following:
- The SSNIT scheme presently receives contributions and has enough funds to pay accruing benefits due Members.
- The SSNIT pension scheme, as set up by ACT 766, is a partially funded scheme, and that pension payments are funded from contributions and returns from investments.
- That pension payments are not funded by reserves.
- There has been steady growth in contributions. This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme.
- That investment income has been healthy and would offset any unexpected deficits that may arise.
- The Government is current in the payment of contributions on behalf of its workers. Modalities are in place to service the outstanding contributions.
- The Trust has never missed any pension payment since 1991, when the pension scheme was introduced.
The management of SSNIT assured all members and the public that it will continue to ensure prudent management of the Fund to meet its benefits payment obligations beyond 2036.
Source:myinfotoday.com
