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The CEO of the National Pensions Regulatory Authority (NPRA) has reassured contributors that despite projections outlined in the recent International Labour Organisation (ILO) report concerning the Social Security and National Insurance Trust (SSNIT), the trust’s future remains secure.
John Kwaning Mbroh emphasized that the purpose of ILO reports is to anticipate future scenarios and implement proactive measures to sustain the scheme. Speaking on PM Express on JoyNews, he stated, “the report is forward-looking…ILO, they’ve always projected on all those lines that if you don’t do A, B, C, D, this way or that way. What it means is that we need to keep improving…it’s all about the financial sustainability of the scheme over a long period.”
Mr. Mbroh outlined measures in place to ensure the scheme’s financial health, including administration expenses and an investment policy to guide SSNIT’s contribution investments. He also mentioned the review of existing investment asset classes and expenditure rationalization efforts.
Additionally, SSNIT is increasing enforcement actions to ensure companies pay their contributions, and government injections have been made to bolster sustainability.
This follows the International Labour Organisation (ILO) projection of complete SSNIT reserve depletion by 2036, as highlighted in an actuarial valuation study of SSNIT viability.
However, SSNIT’s Chief Actuary Joseph Poku clarified that the ILO report is a prediction, done every three years as required by law, and provides an overview of the scheme’s status, assets, and liabilities. He cited past reports that predicted SSNIT’s inability to pay funds by 2019, yet the scheme has consistently met payment obligations.
Mr. Poku emphasized the report’s function in providing insights into the scheme’s trajectory, enabling proactive measures to avoid potential risks. He stated, “it gives you an idea of where you are going as a scheme, and then you take proactive measures to steer off, if there is any danger ahead of you.”
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