The implementation of the National Pension Regulatory Authority (NPRA) Act 766 is having adverse effect on the earnings of the Social Security and National Insurance Trust (SSNIT), as SSNIT members’ contribution has dropped by 27 per cent.
With the corning into effect of the Act in 2010, SSNIT is also experiencing a fall in its general investment.
The Director-General of SSNIT, Dr Frank Odoom, who disclosed this on Tuesday at the launch of the 20th anniversary of the Retired SSNIT Staff Association in Accra, said with the implementation of the Act which gives NPRA an oversight responsibility, made it impossible for SSNIT to take crucial decisions pertaining to investment.
“It is also quite threatening that the Act has a provision that has extended annuity from 72 to 75 years, whereas the minimum monthly contribution required for pension has dropped from 240 to 180 months” he noted.
This, he said, had generated a reduction in the SSNIT contribution regarding to benefit payment which has become a burden and very disturbing.
Dr Odoom also attributed the reduction in the SSNIT fund to the National Health Insurance Scheme (NHIS) as the trust is battling with low returns on investments.
He said that though the social security fund is generally aimed at raising pension payment for contributors, the scheme also ensures that pensions are periodically adjusted but not to the detriment of the fund.
The Corporate Affairs Manager of SSNIT, Ms. Eva Amegashie, said the Trust with high optimism had strategised its operations to ensure that it grows from strength to strength in its collection system.
The downward revenue, she said, had enabled the Trust to commit itself to embark on prudent investments which include the Wahome Steel Limited to strategic investors and that of the oil and gas sector which will contribute funds to enhance the operations of the scheme.
She said that, even though this year indexation is GH¢10.03 per pensioner, the Trust pays GH¢1,067,021.49 monthly to its beneficiaries explaining that this had resulted in the payment of GH¢l,000 per pensioner monthly than what they contribute to the scheme.