SSNIT reserves projected to hit zero in 12 years – ILO

According to 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.

SSNIT having no other means of payment will depend on the reserves it has to meet the payment demand leading to the start of the depletion process.

This means the scheme can no longer pay pension benefits if there are no contributions, no investment income and no other income.

Of the GH¢9.35 billion total indebtedness to SSNIT as of December 31, 2021, 73.7% translating to GH¢6.9 billion was due to late payments of contributions by the government.

This leads to a 1.3 per cent drop in expected returns on investment made by SSNIT, the report emphasised.

According to the study, “Past experience suggests that, by not paying on time and not paying the interest income on delayed contributions, the Government shifts an important part of the cost to the private sector”.