The Social Security and National Insurance Trust (SSNIT) has assured it has enough reserves to pay all benefits due contributors and validly nominated dependants.
According to management, it has not relented in its efforts to retrieve all arrears owed the Trust by employers to improve the sustainability of the Scheme.
This comes on the back of an actuarial valuation report by the Africa Centre for Retirement Research (ACRR) in 2017.
The report noted that the government’s indebtedness to the scheme, growing numbers of pensioners, growing amounts paid pensioners, employer indebtedness, among others, continued to threaten the long-term sustainability of the defined benefit scheme as run by the trust.
ACRR subsequently made a call to Parliament for the upward review of the current SSNIT contribution of eleven percent and law to mandate the scheme to present its actuarial valuation reports to Parliament for scrutiny to save the scheme from becoming insolvent.
The Centre also proposed to Parliament for persons with strong financial and investment backgrounds to be the ones appointed as board members.
But, the scheme, in a statement released by its Management said it has taken note of the concerns raised by the ACRR with efforts being made to address them accordingly.
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On the back of indebtedness, the statement added, “The Trust encourages and reminds employers to pay the social security contributions of their workers by
14th of the ensuing month to avoid paying penalties.
“However, where employers fail to do so, they have the option to negotiate terms of settlement. Management of SSNIT initiates court action against defaulting employers who fail to take advantage of negotiations.”
Meanwhile, SSNIT has pledged to all Members and the public that it will continue to
ensure prudent management of funds to enhance the long term sustainability of
the Scheme.
Read the full statement below: