ILO projects SSNIT reserve depletion by 2036 due to late govt payments
Social Security and National Insurance Trusts (SSNIT)
The International Labour Organisation (ILO) has issued a concerning projection, stating that the Social Security and National Insurance Trusts (SSNIT) reserve is expected to be fully depleted by 2036, according to an actuarial valuation study.
Read full articleThe report highlights that by 2029, SSNIT's total income, comprising contributions, investment income, and other revenue, will no longer cover annual expenditures, including pension payments.
This impending shortfall in income is anticipated to lead to a gradual depletion of reserves, with the reserve ratio declining from 3.4 to 0 between 2021 and 2036.
The study emphasizes that without contributions, investment income, or other revenue streams, SSNIT will be unable to meet pension obligations.
A significant factor contributing to this situation is the delay in government payments, with 73.7% of SSNIT's GH¢9.35 billion indebtedness as of December 31, 2021, attributed to late government contributions.
This delay not only impacts SSNIT's ability to generate expected investment returns but also shifts a considerable portion of the financial burden onto the private sector, as outlined in the valuation report.
