SSNIT Achieves Notable Growth in Investment Returns despite Challenges – DG Tells Parliament Committee
The Director-General of the Social Security and National Insurance Trust (SSNIT), Kofi Osafo-Maafo, has highlighted significant improvements in the trust’s financial performance, crediting strategic initiatives and prudent management for the turnaround.
The SSNIT Boss revealed this when he appeared before the Public Accounts Committee (PAC) of Parliament with his supporting staff to response to issues emanating from the 2023 Auditor General Report.
The Thursday, August 15, sitting presided by Vice Chairman of the Committee, Hon Samuel Atta-Mills, focused on reviewing SSNIT’s financial statement.
Responding to key inquiries led by Hon. Isaac Opoku, a member of the committee, Kofi Osafo-Maafo reported a remarkable shift from a deficit of over GHS 300 million in the previous year to a surplus of more than GHS 230 million.
Hon. Opoku praised the Director-General for the turnaround, noting the dramatic improvement. “Last year, you moved from a deficit of a little over GHS 300 million to a surplus of more than GHS 230 million. That is incredible. What did the trick?” he asked.
Kofi Osafo-Maafo attributed the positive performance to several key factors, beginning with a 29% increase in net contributions received.
“Our net investment income also grew by 49% to approximately GHS 706 million, coupled with a significant increase in other income. We also managed to control costs fairly well,” he noted.
Hon. Opoku further inquired about the sources of the “other income” that contributed to SSNIT’s improved financials.
Kofi Osafo-Maafo clarified that these incomes stemmed mainly from penalties on delayed contributions and revenue from the sale of SSNIT properties.
In his remarks, Hon. Opoku also commended the improvement in SSNIT’s current ratio, which moved from 1.1 in 2021 to 1.6 in the current year. He encouraged the trust to build on these gains. “Your current ratio is better than the previous year. It’s improved slightly from 1.1 to 1.6, so it’s not too bad, and we can only encourage you to continue improving,” he said.
The committee however commended SSNIT’s performance amidst challenging conditions, with an emphasis on sustaining the progress made while further strengthening the trust’s financial stability.
SSNIT was established in 1972 under NRCD 127 to administer the National Social Security Scheme. Prior to 1972, the Scheme was administered jointly by the then Department of Pensions and the State Insurance Corporation. The Trust administered the Social Security Scheme as a Provident Fund Scheme until 1991 when it was converted to a Social Insurance Pension Scheme then governed by the PNDC law 247.
The scheme was reformed by an Act of Parliament, Act 766 of 2008 and was implemented in January 2010 to replace all pension schemes in Ghana including Cap 30. In 2014, the National Pensions (Amendment) Act 883 was passed to amend portions of Act 766.
The vision of the Trust is to “be the model for the administration of Social Protection Schemes in Africa and beyond”.
It mission is “to provide income security for workers in Ghana through excellent business practices”.
Currently, SSNIT has an active membership of over 1.9 million as at June 2024 with over 248,742 pensioners who regularly receive their monthly pensions from SSNIT.
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Source: Felix Nyaaba // expressnewsghana.com
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