Pension payments are not funded by reserves – SSNIT on ILO Report

Management of the Social Security and National Insurance Trust (SSNIT) has rejected the International Labour Organisation’s (ILO) , which indicated that the Trust cannot pay benefits by 2036 due to depleting reserves.

According to the ILO, total income including contributions, investment income and other income, will no longer be sufficient to pay for annual expenditures, including benefit payments to pensioners, by 2029.

“Starting in 2029, total income (contributions, investment income and other income) is no longer sufficient to pay for annual expenditures.

“The reserve starts to decrease.

During the year 2036, the reserve drops to zero,” the report emphasised.

But the Trust, in a statement dated Friday, April 26, said it does not pay pension benefits with funds from its reserves.

However, it added, “There has been steady growth in contributions.

This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme.”

It continued by emphasising the fact that the Trust has never missed any pension payment period over the past three decades.

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Moreover, SSNIT said the government is currently in the payment contributions on behalf of its workers, adding that, “Modalities are in place to service the outstanding contributions.”

“That investment income has been healthy and would offset any unexpected deficits that may arise,” the Trust assured.

Below is the statement from SSNIT