Ghana Trade - Official SME Product Portal and Web Gallery

News

SSNIT Scheme Unsustainable; Contributors Reducing - Fmr MD of SIC

The Social Security and National Insurance Trust (SSNIT) scheme will not be sustainable by 2030 if the dynamics of the scheme or the contribution rate does not change, a former Managing Director (MD) of SIC Insurance Company (SIC), Mr Peter Osei Duah, has said.

Currently, the old population that receives SSNIT benefits keeps increasing, while the number of contributors keep dwindling, raising fears that if the trend persists, there will not be enough funds to run the scheme beyond 2030.

Speaking on the sustainability of pensions at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, Mr Duah said, “The most critical hindrance to the sustainability of the SSNIT pension scheme is the changing demographics where the older population who enjoy SSNIT retirement benefits are living longer and enjoying the benefits, while the workers who are supposed to be contributing for these retirees are rather dwindling.

“When this happens, then it means you are in a big trouble because as time goes on, the scheme becomes stressed and not sustainable.

“So something needs to happen between now and 2030 to ensure the safety and continuing existence of our SSNIT scheme,” he stressed.

Need for changes

Mr Duah, therefore, called for the need to make certain changes to the scheme to ensure its sustainability beyond 2030.

“In the United States of America (USA) for instance, this has happened, and they have had to make certain changes to their scheme to make it more viable, so our scheme also has to change.

“Normally what happens when you are in such a situation is that you either increase the contribution rate by law or you decrease the benefits under the scheme,” he said.

He said another way was to also find ways to increase youth employment, but added that it would not have much effect.

Mr Duah said the best way to address such a problem was to increase the normal retirement age or the government should come up with a supplementary scheme with funds from the consolidated fund.

“But as we grapple with this challenge, we can take a cue from other countries. The USA has increased its normal retirement age from 65 to 70 years and we might have to consider this going forward. This will give us more time to accumulate a little more funds to pay the benefits when they become due,” he explained.

Strong pension regime

A partner of Bentsi-Enchill, Letsa and Ankomah, Ms Angela Akosua Gyasi, also called for a strong pension regime which would be capable of providing capital for the government’s infrastructure programmes and improve the capital markets.

“If we are going to have a robust pension system, we don’t only have to have a pension system that is right for retirement people but one that provides coverage of all Ghanaians and with adequacy of benefits,” she said.

She said although there was adequate provision in the Pensions Act that covered people in the informal sector, majority of Ghanaians were still without pensions.

Management of contributions

In his opening remarks, the MD of the Graphic Communications Group Limited (GCGL), Mr Ken Ashigbey, underscored the need for the better management of pensions in the country.

“Contributors expect their contributions to be managed well in order to result in a significant growth in returns to get good pensions on retirement,” he stated.

He said the significance of the pension funds to the survival of a country’s citizenry was the reason why most governments across the world had developed laws to protect the fund.

Mr Ashigbey, therefore, urged the country to develop an interest in the management of the pension funds in order to secure a successful future.

“I think that citizens need to know and understand what their pensions law says, whether it truly protects their future and also contributes to the economic growth in a manner that will meaningfully affect their lives both in and after employment,” he said.

Government To Revive Media Fund

The Government is working on modalities to revamp the Media Fund to facilitate the development of the capacities of journalists, the Minister of Information, Mr Mustapha Hamid, has said.

He said the Government was determined to supporting the growth of the media to be able to effectively investigate and communicate on all aspects of social development.

Mr Hamid disclosed this on Tuesday in Accra at the opening of a three-day training workshop on investigative journalism organised by Media Response.

The workshop, dubbed: “Support to Free Movement of Persons and the Migration in West Africa,” was funded by the European Union in collaboration with the ECOWAS Commission.

Mr Hamid said the workshop was being held at a time the country was bracing itself to deal with the unprecedented challenges of irregular migration and human trafficking currently confronting the whole world.

“The recent reported incidence of trafficking of girls from Ghana to the Gulf States is a typical example,” he added.

Mr Hamid said Ghana was a signatory to several international protocols and conventions, which sought to promote safer migration and guarantee the rights of migrants such as the ECOWAS Protocol on Free Movement of Goods and Persons and Rights of Establishment as well as the ECOWAS Common Approach on Migration.

He said given the contemporary migration realities and dynamics as well as the current global processes of urbanisation and development, the media could not afford to ignore migration and its impact on economic development.

He noted that it was imperative that the Ghanaian media had a key role to play in the promotion of safe, secure and intra-regional migration.

Mr Hamid said the coming into force of the National Migration Policy in April 2016 as well as the high number of communications and policy documents addressing the issue also signified government’s commitment towards ensuring the country derived optimum benefits from the positive aspects and minimise the negative consequences.

Mr Dominic Afriyie Agyemang, the Deputy Director/Head of Migration Unit of the Ministry of Interior, said: “Ghana does not find itself in a very favourable position in the books of the United States Department of State Report on Trafficking in Persons.

“Ghana remained on Tier Two Watch List for the third consecutive year. This does not put Ghana in a very good picture in the eyes of the world with regards to eliminating child labour and human trafficking with the tendency to losing the essential courtesies from the United States”.

He explained that the Interior Ministry was, therefore, seeking the support of the media to redeem Ghana’s image.

More Articles...

  1. Tax Exemption Reforms Yield Results — Ofori-Atta
  2. 18 SOEs Record GH¢791 Million Losses — Veep
  3. Chicago City Makes $20m Deposit In Kwesi Nduom's ISF Bank
  4. Let’s Change Our Economies – Nana Addo
  5. Free SHS Is The Beginning – Dr Bawumia
  6. Nigerian Wins Komla Dumor Award (PHOTO)
  7. Priest Descends On Free SHS Critics
  8. A-Plus And Akosua Vee’s White Wedding Set For September 23
  9. Okyenhene Lauds Nana Over Free SHS
  10. NHIA Clears NDC Huge Debt
  11. Dr Joseph Siaw Agyepong Nominated As Finalist In Africa's Most Respected Business Awards
  12. Ghanaian Men Are Afraid To Propose To Us – Military Women Cry Out
  13. ‘Regulate Foreign Investment’
  14. Three More Heads To Roll Over $72 Million SSNIT Software Scandal
  15. UTAG Begins Nationwide Strike
  16. Accra Girls Denies Shutting Doors To Girl With Dreadlocks
  17. Government Will Provide Logistics For Fire Fighting - Interior Minister
  18. Another Soldier Nearly Lynched
  19. NPA Seizes GH¢1.4m Smuggled Petrol
  20. Prez Akufo-Addo First To Receive National ID Card
  21. Ghana Needs Sound Leadership - GOIL MD
  22. Ghana Saves $1bn On LNG Deal
  23. Staff Of Capital, UT Demand Severance Packages
  24. GHS400m Capital: These Banks Won't Make It
  25. Make Your Life Meaningful With Free SHS
  26. Implementation Of Free SHS Killing Private Schools - Headteachers Cry
  27. Government To Pay Long-Standing Arrears Of Educational Institutions
  28. 'I Will Not Be 'Armchair' Council Of State Member' - Nyonyo
  29. Free SHS: Parents Charged GH¢700 For Hostel Accommodation In Cape Coast?
  30. Ghana Bar Association Condemns ‘Threats And Attacks’ On Kenyan Judges