SSNIT dismisses concerns over depletion of reserves by 2036

The Social Security and National Insurance Trusts (SSNIT) has responded to projections by the International Labour Organisation (ILO) indicating a potential depletion of SSNIT's reserve by 2036, dismissing it as a prediction.

Joseph Poku, SSNIT's Chief Actuary, addressed concerns raised by the ILO study during a press conference on Monday, emphasizing that such studies are conducted every three years to

Read full articleassess the scheme's status, assets, and liabilities.

Poku highlighted that previous projections, including a 2011 report forecasting an inability to pay funds by 2019, did not materialize. He underscored that SSNIT has consistently met its payment obligations, indicating that the scheme's sustainability remains intact.

"We have never defaulted in payments or benefits from 2019 up to date. So in this report, it's not different from the reports that we've obtained over the years. Like I said, it gives you an idea of where you are going as a scheme, and then you take proactive measures to steer off, if there is any danger ahead of you," he said

The ILO study warns that total income, including contributions and investment income, will no longer suffice to cover annual expenditures by 2029, leading to a gradual depletion of reserves until they reach zero by 2036.

While defending SSNIT's sustainability, Poku acknowledged the recurring recommendation to increase contribution rates as a means to bolster the scheme's financial position. However, he noted the complexity of implementing such changes, requiring legal amendments and stakeholder engagement.

Despite these challenges, Poku assured stakeholders that SSNIT is committed to taking proactive measures to address any potential risks to the scheme's stability.