A new actuarial valuation report from the Africa Centre for Retirement Research (ACRR) suggests that the Social Security and National Insurance Trust (SSNIT) may not be able to fully pay benefits of pensioners after 2037.
According to the report, the Social Security and National Insurance Trust (SSNIT) is facing medium- to long-term sustainability danger.
Speaking to press men last Wednesday , the Executive Director of ACRR, Abdallah Mashud, explained called on government to put measures in place else SSNIT risk collapsing.
According to Abdallah Mashud, ACRR’s 2014 actuarial valuation exercise also pegged a depletion of SSNIT’s resources by 2042.
Abdallah Mashud says he fears the next actuarial valuation report may even pose threatening outcomes to pensioners and Ghanaian workers in general following the effects of the Covid-19 pandemic on the country’s economy.
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“Three years later, that is, the subsequent valuation in 2017, however, predicts that the reserves [will] deplete in 2037, five years earlier. What this means is that if Parliament, policymakers and stakeholders do not undertake the necessary steps to address the imbalance in the social security finances through parametric and legislative reforms, the Trust funds are unable to pay full scheduled benefits on timely basis in 2037.”
“ACRR is, however, of the opinion that, considering the SSNIT pensioners’ post-retirement mortality pattern, increasing retirement age by two years will result in more members dying in service, instead of in pension,” he told press men.
He also used the opportunity to call on government to rather pay up its indebtedness to SSNIT.
Meanwhile, there have been calls to increase the retirement age from 60 years to 62 years by 2037.
Ghana | Atinkaonline.com | Vivian Adu | [email protected]