In response to a report by the International Labour Organization (ILO) warning that Ghana’s Social Security and National Insurance Trust (SSNIT) could deplete its funds by 2036, labor expert Austin Gamey has called on organized labor to safeguard employer deductions to SSNIT.
Gamey pointed out that the pension scheme has been marred by corruption and government intervention.
Speaking on TV3’s Ghana Tonight programme on Thursday, April 25, 2024, Austin Gamey said, “The whole scheme has been bedevilled by corruption and government interference…The government must not manage the scheme. Organised labour must protect the deductions by employers”.
He emphasized the necessity of managing SSNIT without government intervention and advocated for oversight of fund managers to ensure proper accountability for entrusted funds.
As of the end of December 2021, the government’s debt to SSNIT amounted to GH¢9.35 billion, with late payments comprising GH¢6.9 billion of this total.
The government’s delayed payments have also resulted in a 1.3 percent reduction in SSNIT’s investment returns.
According to the ILO report, the government’s failure to make timely payments has effectively shifted a substantial financial burden onto the private sector.
“Past experience suggests that, by not paying on time and not paying the interest income on delayed contributions, the government shifts an important part of the cost to the private sector,” the report said.
The ILO forecasted that SSNIT would exhaust its funds in fulfilling its financial obligations to beneficiaries in the future.