Make the SSNIT independent to avoid government interference – Economist

Company News of Friday, May 3, 2019

Source: citibusinessnews.com

2019-05-03

Economist Professor Godfred Bokpin calls for a policy that will limit the powers of the government by appointing the President and Board of Trustees of the Trust for Social Security and National Insurance (SSNIT) to protect pension funds.

President Akufo-Addo announced during Workers' Day celebration that the government would issue a 700 million cedis bond to pay part of the debt owed to SSNIT.

However, some financial observers are wondering why the government should owe one billion cedis to SSNIT, blaming the situation on power.

Speaking on the issue, Professor Bokpin baderted that it was time to reduce the government's power over SSNIT funds in order to preserve the future of workers' pensions.

"If there is a policy or anything, we must consider the composition of the board of directors of the SSNIT, and then the appointment authority. I'm sure when you go into SSNIT, they will tell you that all these investments have been made by SNNIT, but we know the influence of the government, "he said.

Professor Bokpin argued that the pbading of a law that would make the Trust independent would prevent it from unduly influencing.

This, he explained, will make the SSNIT live beyond governments, ensuring the term of office of its chair and the ability of board members to perform their duties freely.

"The SSNIT board is changing with the change of government. Thus, to make the SSNIT independent, we must guarantee their operational independence by also examining the composition of the board of directors, its mode of appointment, and the terms of appointment, "he said.

About SSNIT

The SSNIT is a statutory public trust entrusted with the administration of the basic basic social security scheme of Ghana, under the National Pensions Act No. 766 of 2008. Its mandate is to meet the first level of the three-tier pension plan.

The Trust is currently the largest non-bank financial institution in Ghana.

The main responsibility of the Trust is to replace part of the lost income of the workers in Ghana because of the old age, disability or death of a member for whom the dependents receive a lump sum payment.

He is also responsible for the payment of emigration benefits to a non-Ghanaian member who leaves Ghana permanently.