The Social Security and National Insurance Trust (SSNIT) have reiterated their steadfast dedication to ensuring punctual pension payments to their beneficiaries. They emphasized that they have consistently met pension obligations without fail since 1991.
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In a statement from SSNIT, they have refuted reports indicating that they would be incapable of disbursing benefits by 2036 due to a reduction in reserves.
This response addresses concerns raised by certain quarters regarding the reliability of pension payments.
A recent report by the International Labour Organization (ILO) has expressed concerns regarding the long-term sustainability of the Social Security and National Insurance Trust (SSNIT). The report suggests that SSNIT’s reserves could run out by 2036, raising doubts about its ability to meet financial obligations to beneficiaries in the years ahead.
The report underscores a worrying trend where administrative expenses linked to overseeing pension funds have been consistently rising as a proportion of member contributions to the scheme.
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This trend prompts inquiries into the allocation of resources and whether they are being utilized effectively to fulfill the intended objective of delivering benefits to retirees.
However, SSNIT has addressed these concerns, affirming in a statement released on Friday, April 26, that it currently receives contributions and maintains sufficient funds to fulfill the accruing benefits owed to its members.
SSNIT explained that the pension scheme, established by ACT 766, functions as a partially financed system, with pension payments supported by contributions and profits from investments, rather than relying on reserves.
The Trust underscored that there has been a consistent increase in contributions, buoyed by current demographics and the endeavors of staff to enlist new employers and contributors.
Read the full statement below
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