The Social Security and National Insurance Trust (SSNIT) scheme is facing a significant issue due to a widening gap between benefit payments and contributions. This was noted by SSNIT Director-General Kofi Osafo Maafo at the 2024 Operations and Benefits Conference held at Elmina Beach Resort.
In the past decade, benefit payments have soared by some 473.6% from GH¢941.27 million in 2014 to over GH¢5.4 billion in 2023. Meanwhile, contribution collections have increased more slowly, by some 252.9% from GH¢1.7 billion to just over GH¢6 billion in the same period. The increase in benefit payments (GH¢4.45873 billion) is slightly higher than the increase in contribution collections (GH¢4.3 billion). Mr. Maafo pointed out that this disparity, with payments outstripping contributions, poses a critical challenge for the Trust.
“This situation in which the Trust pays out more than it collects should be a source of great concern to all of us,” he said.
Several factors contribute to this gap, including the aging of the SSNIT Fund and the rising number of retirees drawing benefits. The National Pensions Act 2008 (Act 766) has also added pressure, with changes such as reducing the scheme’s funding rate from 17.5 percent to 11 percent, lowering the vesting period, and enhancing benefits.
Mr. Maafo emphasized the need for innovative strategies to ease these pressures until the law can be amended. To address these challenges, Mr. Maafo suggested a three-pronged strategy: expanding the SSNIT scheme’s coverage, enforcing compliance, and using advanced technology to manage operations. Increasing active membership is crucial for boosting contributions and ensuring the scheme’s sustainability. One key strategy to achieve this is the SEED (Self-Employed Enrollment Drive) initiative, designed to bring more workers into the scheme. However, Mr. Maafo noted that current enrollment figures are lagging behind targets.
Mr. Maafo announced the upcoming launch of the ‘SSNIT Digital Bouquet,’ which includes a new website, portal, upgraded USSD platform, and the SSNIT Mobile App. He expressed optimism that these digital tools will enhance service delivery and make it easier for members and employers to contribute regularly.
