The Social Security and National Insurance Trust (SSNIT) has debunked news reports that it cannot pay members’ benefits by 2036 due to depleting reserves.
According to SSNIT it receives contributions and has enough funds to pay accruing benefits due to members.
In a statement by management dated April 26, 2024, SSNIT said, the scheme as set out by Act 766, is a partially funded scheme and that pension payments are funded from contributions and returns from investments” and stressed that “reserves do not fund pension payments.
“The SNIT scheme presently receives contributions and has enough funds to
pay accruing benefits due Members, the SNIT pension scheme, as set up by ACT 766, it is a partially funded scheme, that pension payments are funded from contributions and returns from investments and that pension payments are not funded by reserves,” it said.
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According to SSNIT it receives contributions and has enough funds to pay accruing benefits due to members.
“There has been steady growth in contributions. This growth is well supported by the current demographics and the dedicated activities of our staff in getting new employers and contributors to join the scheme,” SSNIT said.
The statement assured members that investment income has been healthy and would offset any unexpected deficits that may arise, while the government pays the contribution of workers.
“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,” it added.
This comes after the International Labour Organisation’s (ILO) report, which indicated that the Trust cannot pay benefits by 2036 due to depleting reserves.
SSNIT assured all members and the public that it will continue to ensure prudent management of the Fund to meet its benefits payment obligations beyond 2036.
Read the full statement below: