SSNIT commits to scheme’s sustainability – Dr. Ofori-Tenkorang

Dr John Ofori-Tenkorang, Director General of SSNIT

Management of the Social Security and National Insurance Trust (SSNIT) has indicated its intention to continue engaging the National Pensions Regulatory Authority (NPRA) and other key stakeholders concerning recent agitations on the computation of past credit of contributors who are due for retirement effective January 1, 2020.

Already, the NPRA has mandated the Trust to further compile a report on computation of past credit and submit to the Authority within two weeks for deliberation and consideration as tomorrow being the deadline.

This comes at the back of recent agitations raised by the Forum for Public Sector Registered Pension Schemes (The FORUM) who claimed that SSNIT has been short-changing contributors’ past credit in its computation and as such the current method of computing past credit is below that of the regulator’s directive.

Past credit is the contribution of workers to SSNIT prior to coming into effect the National Pensions Act, (Act 766), which brought about the three-tier pension scheme.

The implementation of the three-tier pension scheme (Act 766), mandated the Trust to pay monthly pensions and the second tier fund managers to pay lump sum. However, there were workers affected by Act 766 who as at 31st December, 2009 being the eve of its implementation had contributed to the SSNIT scheme.

“This meant they had contributed 17.5 percent of their salaries to the Trust which was 4 percent more than the current 13.5 percent. This 4 percent of salaries accumulated with interest from the dates on which the contributions were received by SSNIT, up to 31st December, 2009, SSNIT says.

Briefing the media, Director General of SSNIT, Dr John Ofori-Tenkorang noted that the Trust however disagrees with the assertion of The Forum, arguing that it only used the agreed formula which The Forum, NPRA, Ministries of Finance and Employment and Labour Relations had signed to compute and pay past credits of contributors.

He insisted that the Trust would not compromise on any illegal directive that seeks to plunge the SSNIT scheme inti financial crisis or any measure that seeks to increase liabilities of past credit.