James Klutse Avedzi, Chair of Parliament’s Public Accounts Committee (PAC), points to non-profitable investments as the cause of Social Security and National Insurance Trust’s (SSNIT) reserve depletion, echoing concerns raised in the International Labour Organization’s (ILO) recent report, which predicts complete depletion by 2036.
In an interview with TV3, Avedzi stressed the need for better oversight of SSNIT’s activities, stating, “SSNIT continues to enter into investments that aren’t profitable. I wasn’t surprised at the ILO’s report on the reserves of SSNIT depleting. Something must be done about the work of SSNIT.”
According to the ILO report, starting in 2029, total income, including contributions and investment income, won’t cover annual expenditures, leading to reserve decline and eventual exhaustion by 2036.
The report highlights a concerning trend, with the reserve ratio plummeting from 3.4 to 0 between 2021 and 2036, indicating an inability to sustain pension payments without contributions or investment income.
SSNIT, however, disputes the report, asserting its reserve’s adequacy to meet obligations beyond 2036. Chief Actuarial Officer Joseph Poku clarified during a news conference in Accra that SSNIT provided all necessary data to the ILO for valuation, refuting claims of impending financial insolvency.
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