SSNIT contributions collection hits GH¢6.8bn last year — Private sector contributes more

The total contribution collections to the Social Security and National Insurance Trust (SSNIT) pension scheme amounted to GH¢6.8 billion as of the end of December last year. This accounts for 87.4% of the annual target of GH¢7.87 billion.

Out of the amount collected for the year under review, the private sector contributed GH¢4.1 billion as against target collections of GH¢3.5 billion, representing a positive variance of 113 per cent.

However, public sector contributions fell short of the annual target as the Trust collected only GH¢2.9 billion, representing 66 per cent of the GH¢3.64 billion.

These came to light at the first SSNIT Media Encounter for the year at Aburi in the Eastern Region during the weekend.

The Director-General of the Trust One Pension Scheme, Kofi Osafo-Maafo, said despite the shortfall from the public sector side, SSNIT was consistently engaging the government to make good its obligations.

“I am happy to say that the government is heeding our call, despite all the financial constraints, and we can assure you all that the scheme is solvent and there is, therefore, no cause for alarm,” he added.

He said, for instance, that the government released GH¢2.5 billion to the Trust a couple of months ago.

Mr Osafo-Maafo said the amount released, GH¢2 billion, was in tradable bonds while the remaining was converted into treasury bills, a development he described as one in the right direction and which the Trust was happy about.

Regarding the total amount owed to the Trust, he did not immediately say, except to add that negotiations on interest to be paid whenever there was a delay were ongoing and expressed the hope that soon that will be concluded and payment made.

On the side of the public sector, he said similar engagements are ongoing and noted that once the various accounts are reconciled, what is due the Trust will be taken to boost its operational efficiency.

It was also further revealed during the various sessions that the new salary cap on which a worker can contribute to the scheme is now pegged at GH¢52,000 at the maximum as against last year’s amount of GH¢42,000.

Targets

During some presentations on the operations of the Tier One Pension Scheme, it was revealed that the overall employer compliance rate was 85.3% as against a target of 90 per cent.

The overall worker compliance rate was above a target of 78% as the Trust achieved a performance rate of 92.7%.

Regarding the difference between contributions collections and benefits payments, SSNIT collected GH¢6.88 billion and paid benefits to the tune of GH¢5.44 billion as of the end of the year 2023, leaving a difference of GH¢1.43 billion.

On arrears retrieved through prosecutions, the Trust managed to retrieve GH¢284 million from a total of 4,068 cases filed in courts in the country.

Going forward

Going forward, the Trust intends to train and encourage stakeholders, including the self-employed, to utilise the Trust’s digital platforms for contribution payments.

It also pledged to collaborate with the Office of the Director General to engage high-profile employers or quasi-governmental institutions with significant debt to retrieve owed amounts while intensifying the enrolment of the new initiative christened Self Employed Enrolment Drive (SEED) members and ensure prompt payments.

It said the operational division remained resolute in its commitment to deliver excellent services to all stakeholders through strategies such as effective monitoring and evaluation of all branch activities.

This will enhance performance and ultimately ensure the sustainability of the Scheme.