PAC Chairman calls for better oversight as SSNIT faces looming reserve crisis
James Klutse Avedzi
James Klutse Avedzi, the Chairman of Parliament's Public Accounts Committee (PAC), has expressed grave concerns over the depletion of the Social Security and National Insurance Trust's (SSNIT) reserves.
Read full articleThe International Labour Organization (ILO) released a report projecting that SSNIT's reserves could be completely depleted by the year 2036.
Mr. Avedzi, speaking to TV3, attributed this alarming forecast to SSNIT's involvement in unprofitable investments. He emphasized the urgency for improved supervision of SSNIT's operations to avert the impending crisis.
According to the ILO report, starting from 2029, the total income generated by SSNIT, including contributions and investment income, will no longer cover its annual expenditures. This deficit will result in a gradual decrease in reserves, ultimately leading to their exhaustion by 2036.
Highlighting the severity of the situation, the report indicates that SSNIT will face challenges in meeting its financial obligations to pensioners. It predicts that SSNIT will be forced to utilize its reserves to pay beneficiaries, a strategy that will become unsustainable by the specified year.
However, SSNIT has refuted the findings of the report, asserting that it possesses adequate reserves capable of meeting its financial obligations well beyond 2036. Joseph Poku, the Chief Actuarial Officer of SSNIT, addressed the media in Accra, clarifying various aspects of the report. He reiterated SSNIT's commitment to transparency and accountability, stating that the organization provided all necessary data to the ILO for its valuation.
The revelation of SSNIT's reserve depletion has sparked a debate in Parliament, with members emphasizing the need for immediate action to safeguard the future of the pension scheme. As discussions continue, stakeholders are under pressure to address the underlying issues contributing to SSNIT's financial challenges and ensure the long-term sustainability of the pension system.
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