The Social Security and National Insurance Trust (SSNIT) may soon struggle to pay pension benefits if the government continues delaying public sector workers’ pension contributions, warns SSNIT Director-General Kofi Osafo Maafo.
The government, which employs a significant portion of formal sector workers, has frequently delayed paying their pension contributions. This ongoing issue has led labour unions to threaten industrial action on multiple occasions.
Addressing the 2024 Operations and Benefits Conference held at Elmina Beach Resort, Mr. Osafo Maafo highlighted the growing gap between benefit payments and contributions, which threatens the scheme’s sustainability.
He spoke on the issue of irregular payments for public sector workers, particularly those paid through the Controller and Accountant General’s Department. He explained that since the government is the single largest employer in Ghana, delays in these payments significantly strain SSNIT’s resources. “If this issue is not addressed promptly, it could hinder the Trust’s ability to meet future obligations,” Mr. Maafo warned.
A former National Pensions Regulatory Authority Chief Executive, Dr. Daniel Seddoh, suggested in an earlier interview that investing in businesses that employ younger workers could help sustain the scheme by increasing contributions and reducing the ratio of benefit payments.
Over the past decade, benefit payments have surged by 473.6%, while contributions have only risen by 252.9%, creating a significant imbalance that endangers SSNIT’s future obligations.
