The International Labour Office (ILO) has issued a sobering report on the prospects of Ghana's Social Security and National Insurance Trust (SSNIT), cautioning that the fund's financial stability is at risk over the next 75 years.
The study points to delayed government payments of workers' contributions as a key factor exacerbating the scheme's fiscal challenges.
As of December 31, 2021, SSNIT's records showed a total debt of GH₵9.3 billion, with a substantial GH₵6.9 billion owed by the government itself.
This staggering figure represents about 75% of SSNIT's overall indebtedness, including overdue contributions and accrued interest charges.
The significant debt owed by the government has placed Ghana's pension fund in a delicate position, resulting in an annual decrease in SSNIT's investment returns by 1.3%.
This diminishing return severely limits the funds available for SSNIT to invest, thereby jeopardizing its ability to meet benefit payouts annually.
Alarmingly, data from 2009 to 2020 indicates that "Total contributions have been lower than the cost of benefits and operational costs, general and administrative expenses" amplifying the strain on the pension scheme.
Compounding the dire situation is SSNIT's meagre average return on total assets of 0.9% over the past 12 years, adjusted for inflation. This paltry return further compounds SSNIT's financial challenges, exacerbating its struggle to maintain stability.
![](https://www.myjoyonline.com/wp-content/uploads/2024/04/2-40-1024x576.jpg)
The persistent issue of delayed government payments of deducted pension contributions exacerbates SSNIT's delicate position.
This prompts a crucial question: What becomes of the pension contributions deducted by the Government of Ghana?
With the current trajectory, the ILO warns that SSNIT's sustainability is in jeopardy, casting a shadow over the future of Ghana's pension system.
![](https://www.myjoyonline.com/wp-content/uploads/2024/04/Presentation1-1024x576.jpg)
Latest Stories
-
Paris 2024: Opening ceremony showcases grandiose celebration of French culture and diversity
3 hours -
Spectacular photos from the Paris 2024 opening ceremony
4 hours -
How decline of Indian vultures led to 500,000 human deaths
4 hours -
Paris 2024: Ghana rocks ‘fabulous fugu’ at olympics opening ceremony
5 hours -
Trust Hospital faces financial strain with rising debt levels – Auditor-General’s report
5 hours -
Electrochem lease: Allocate portions of land to Songor people – Resident demand
5 hours -
82 widows receive financial aid from Chayil Foundation
5 hours -
The silent struggles: Female journalists grapple with Ghana’s high cost of living
6 hours -
BoG yet to make any payment to Service Ghana Auto Group
6 hours -
‘Crushed Young’: The Multimedia Group, JL Properties surprise accident victim’s family with fully-furnished apartment
6 hours -
Asante Kotoko needs structure that would outlive any administration – Opoku Nti
7 hours -
JoyNews exposé on Customs officials demanding bribes airs on July 29
7 hours -
JoyNews Impact Maker Awardee ships first consignment of honey from Kwahu Afram Plains
8 hours -
Joint committee under fire over report on salt mining lease granted Electrochem
8 hours -
Life Lounge with Edem Knight-Tay: Don’t be beaten the third time
9 hours