The Social Security and National Insurance Trust (SSNIT) has raised concerns about the long-term sustainability of its pension scheme, citing a troubling disparity between the escalating benefit disbursements and the slower growth in contribution collections.

Speaking at the opening of the 2024 Operations and Benefits Conference in Elmina, SSNIT Director-General Mr. Kofi Bosompem Osafo-Maafo attributed this trend to irregular payments from the government, which is the largest employer in the country. The conference, themed “Sustaining the SSNIT Scheme through increased active membership and adequate contribution collections using appropriate technology,” focuses on leveraging technology to enhance SSNIT’s service delivery.

Mr. Osafo-Maafo disclosed that the total benefits paid by SSNIT surged from GH¢941.27 million in 2014 to GH¢5.46 billion in 2023. In contrast, contribution collections rose from GH¢1.78 billion in 2014 to GH¢6.01 billion in 2023. Despite the growth in collections, benefit payments have increased at a compound annual growth rate of 21.5%, while contributions have only grown by 14.46%, leading to a situation where the Trust is disbursing more than it is collecting.

He highlighted that delays in contribution payments, particularly for public sector workers under the Controller and Accountant General’s Department, have further exacerbated the issue. “With the government being the largest employer, numerous government workers retiring and seeking their benefits place a substantial burden on the Trust,” Mr. Osafo-Maafo noted.

The Director-General also pointed out that changes introduced by the National Pensions Act 2008 (Act 766), such as reducing funding from 17.5% to 11% and shortening the vesting period from 240 months to 180 months, have strained the Trust further. He called for amendments to the law or the development of innovative strategies to address these challenges.

Looking forward, Mr. Osafo-Maafo emphasized the importance of expanding coverage, enforcing compliance, and prudently investing funds to ensure the sustainability of the SSNIT scheme for future generations. He also announced the adoption of cutting-edge technology to manage precise and reliable bio and financial data on members, ensuring the adequacy and relevance of benefits.

Ms. Juliana Kpedekpo, Deputy Director-General in charge of Operations and Benefits, added that technological advancements were transforming the landscape of social security. She noted that utilizing technology would enhance the visibility of SSNIT’s operations, allowing members real-time access to account information, thereby fostering trust and transparency.

The three-day conference aims to explore these technological solutions and chart a course for the future of SSNIT’s operations in the face of evolving challenges.