The Social Security and National Insurance Trust (SSNIT) has made an appeal to the government to review its contribution rate, currently at 13.5%, to 19.2% for increased sustainability.
SSNIT is responsible for administering Ghana’s Basic National Social Security Scheme, and the current contribution rate of 18.5% is divided among various organizations, with 11% going to SSNIT.
However, a recent report by the Auditor-General found that the current contribution rate is not sufficient for sustainability and recommends increasing it to 19.2%.
The Director-General of SSNIT, Dr. John Ofori-Tenkorang, explained the rationale behind the proposal, stating that the low contribution rate is due to accounts being prepared on a cash basis and that the Trust is taking measures to increase investment income, control costs, and mobilize additional revenue.
The proposed strategies to achieve these goals include re-balancing the investment portfolio, increasing investments in fixed income, selling off housing stock, and reinvesting proceeds from exited equities. As SSNIT takes action to ensure its future sustainability, it remains to be seen if the government will approve the proposed increase in contribution rate.
Nevertheless, the Trust is taking steps to streamline investments and improve returns, which may reduce the need for a higher contribution rate in the future.