Business News of Wednesday, 24 November 2021
Source: www.ghanaweb.live
2021-11-24Govt's indebtedness to SSNIT, an impediment to its sustainability – Report
75% of SSNIT’s debt owed by government
Indebtedness to the Trust almost doubled in 2018
The Trust’s fund reserves will be depleted if its debts are not paid
The Social Security and National Insurance Trust has said it is running at a loss and may be unable to pay remittances if its debtors do not pay them.
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As of the end of 2017, the total indebtedness to the Social Security and National Trust stood at GH¢908.03million.
Out of this amount, government’s debt alone stood at 75% of the total debt of the Trust. This almost doubled by the end of 2018.
According to SSNIT government’s indebtedness is detrimental to its operations as well as the disbursement of funds to pensioners or their beneficiaries.
The implication is that if parliament, policymakers, and stakeholders do not take the necessary steps to address the imbalance in the social security finances through parametric and legislative reforms, the Trust funds are unable to pay full scheduled benefits on a timely basis in 2037.
SSNIT has thus called on government to as a matter of urgency settle all its debts, and also serve as an example for private sector employers to emulate.
“It is imperative that government settles its outstanding indebtedness to the Trust and stick to the payment schedule as stipulated by section 63 of Act 766. That as well will represent a good example for private sector employers to follow," a report by the pension scheme noted.
Director-General of SSNIT, Dr. John Ofori-Tenkorang, had earlier this year entreated employers to make the right contributions to the Trust to cushion them during retirement.
