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Pension payments are not funded by reserves – SSNIT

The Social Security and National Insurance Trust (SSNIT) has denied rumors circulating that it is running out of funds.

According to some reports, SSNIT’s reserves may run out by 2036, making it impossible for the program to pay settlements.

However, in a statement released on Friday, April 26, SSNIT stated that it“presently receives contributions and has enough funds to pay accruing benefits due Members.”

It stated that contributions and investment returns pay for the pension payouts, making the plan partially funded.

“That pension payments are not funded by reserves.”

“There has been steady growth in contributions. This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme,” it further stated.

According to the Scheme, investment income has been strong and would cover any unforeseen shortfalls.

“The Government is current in the payment of contributions on behalf of its workers. Modalities are in place to service the outstanding contributions.”

“The Trust has never missed any pension payment since 1991, when the pension scheme was introduced,” it stated.

Therefore, SSNIT gave the public and its members the assurance that it will keep up its careful administration of the Fund in order to fulfill its commitment to pay payments past 2036.

“As we approach May Day, we wish all pensioners and workers in Ghana a Happy May Day,” it added.