The Social Security and National Insurance Trust (SSNIT) is anticipating a solid financial outlook for 2024, attributed to notable gains in its investment returns and enhanced operational efficiency.
SSNIT Director-General, Kofi Osafo-Maafo, highlighted during a stakeholder address that the trust has significantly improved its financial standing over the past few years.
In 2021, SSNIT faced a deficit but managed to achieve a GH¢230 million surplus by 2022. This upward trend continued in 2023, with a surplus of GH¢864 million.
Mr. Osafo-Maafo noted that the trust expects a similar performance in 2024, driven by better contributions collection, higher investment returns, and effective cost management.
“This financial progress is a testament to our prudent management of investments and effective operational strategies,” Osafo-Maafo said. “The figures reflect SSNIT’s commitment to improving its services and ensuring sustainability of the pension scheme.”
The Director-General also noted that SSNIT’s efforts to streamline its operations have been bolstered by the compliance of employers. This cooperation has allowed SSNIT to maximise the use of digital platforms to improve contribution collection and payment processes.
SSNIT has paid out a total GH¢3.2billion in benefits to its members in the first half of 2024, underscoring the trust’s pivotal role in supporting retirees. These payments included over GH¢2.8billion in old-age pensions to 248,554 beneficiaries; GH¢15.6million for invalidity pensions to 1,666 individuals; GH¢51.5million in old-age lump-sums to 2,941 retirees; and GH¢258.6million as survivor’s lump-sums to 14,493 beneficiaries.
These figures highlight the trust’s dedication to alleviating old-age poverty and ensuring financial stability for retirees. Osafo-Maafo stated that SSNIT is committed to maintaining this level of support while also exploring new ways to improve the pension scheme’s sustainability.
One of the event’s key themes was the trust’s commitment to leveraging technology for enhancing service delivery.
Mr. Osafo-Maafo highlighted how digital platforms are making pension services more efficient, reducing delays in processing pension claims and simplifying administrative procedures.
“In the past, there were concerns about the time it took to get pensions paid and submit contribution reports. Over the years, we have made significant improvements in those areas,” he stated.
He further outlined the introduction of various digital services – including a mobile app and other online platforms designed to facilitate seamless engagement between contributors and the trust.
During the event, Ms. Juliana Kpedekpo, SSNIT’s Deputy Director-General for Operations and Benefits, provided an update on the trust’s Self-employed Enrolment Drive (SEED). Launched in 2023, SEED aims to extend pension coverage to self-employed individuals and workers in the informal sector.
“The SEED initiative has been highly successful, with enrollment growing from 13,000 in May 2023 to over 100,000 within a year,” Ms Kpedekpo announced.
She acknowledged the progress made but reiterated a need for continued efforts to ensure that all workers are covered under the SSNIT scheme.
“Our goal is to provide every worker in Ghana with the opportunity to retire with dignity and comfort,” she added.
The trust’s positive financial projections for 2024, combined with its ongoing efforts to expand pension coverage and improve service delivery, reflect SSNIT’s determination to strengthen Ghana’s social security system.