The Social Security and National Insurance Trust (SSNIT) has responded to concerns that it will run out of reserves and be unable to pay benefits.
This is in response to reports from the International Labour Organization (ILO) indicating that SSNIT’s reserves may run out by 2036.
In a statement dated April 26, SSNIT allayed the fears, stating that it “presently receives contributions and has enough funds to pay accruing benefits due Members.”
It explained that the pension benefits are not funded by reserves, as the scheme is a partially funded one.
“The SSNIT pension scheme, as set up by ACT 766, is partially funded, and the pension payments are funded from contributions and returns from investments.
“That pension payments are not funded by reserves,” it stressed.
The scheme disclosed that there has been growth in contributions, adding that investment income has been healthy and would offset any unexpected deficits that may arise.
“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.”
They however gave assurance to its members that “it will continue to ensure prudent management of the Fund to meet its benefits payment obligations beyond 2036.”