SSNIT commits the government on the arrears of 1 billion GHC

Company News from Tuesday, April 16, 2019

Source: citibusinessnews.com

2019-04-16

The Social Security and Social Security Fund (SSNIT) is confident that it has access to the claims owed to it by the government to badist it in its operations.

Last year (2018), outstanding claims that the government was to give the pension management company were estimated at one billion cedis.

Some industry observers attributed this development to the constraint faced by SSNIT to meet the needs of its contributors and undertake other investment projects.

But the director general of the SSNIT, John Ofori Tenkorang, says discussions are underway with the Ministry of Finance to gain access to outstanding payments.

He was speaking at a press conference on the Trust's operations over the weekend.

"We are in contact with the Ministry of Finance to find a solution and we agreed that this would involve some kind of cash payment and bonds issued … The Fiducie's investment portfolio explained that this is the need for the government to invest in fixed income and the best issuer of bonds when the yield is good in terms of credit, "he explained.

Mr. Tenkorang added that their ability to repay money on time should facilitate the cash flow needed for a portfolio of this size.

"So, if we receive the arrears that are paid to us with the help of a financial instrument acceptable to us, I think it will be good for us. I am convinced that the short-term cash flow problems will be solved and that we will get our obligations. "

At the same time, the SSNIT denied allegations that it would defraud contributors of their benefits on the basis of the defective Scheme calculation system.

A committee of the Trades Union Congress (TUC) has identified gaps in the calculation of pension benefits by the SSNIT for its contributors.

The Committee noted that the SSNIT misinterpreted the annual salary, the early retirement reduction factor and the annuity factor on the lump sum, which ultimately affected the contributor.

Although the SSNIT acknowledges that there may indeed be a fundamental flaw in the pension legal regime, it maintains that the scheme is not a cheater.

"Both parties have recognized this and embarked on a process to correct it, which will likely result in a list of amendments that we would like to legislate to govern the way we do things," said Director General of SSNIT, Dr. John Ofori Tenkorang said in an interview with Citi News.