SSNIT boss calls for collective action to sustain pension scheme
Kofi Bosompem Osafo-Maafo, director general, SSNIT
Isaac AIDOO in Accra, Ghana
Kofi Bosompem Osafo-Maafo, the director general of Ghana’s Social Security and National Insurance Trust (SSNIT), has made a strong call for collective responsibility and urgent action to ensure the sustainability of the pension scheme.
Speaking at a recent stakeholder meeting, he emphasised the need for all stakeholders to play an active role in addressing the growing financial pressures on SSNIT, as benefit payments continue to outpace contribution collections.
“We must collectively get involved to rope in more workers,” Osafo-Maafo urged. He highlighted the importance of leveraging technology to enhance service delivery, including the prompt processing and payment of benefits, to gain and maintain the support of stakeholders.
“Let’s apply situational management skills and lead by example,” he added, calling on SSNIT staff to act as ambassadors of the scheme and to exhibit the character necessary to attract new members.
Rising benefit payments outstrip contributions
Osafo-Maafo raised concerns about the increasing financial burden on SSNIT, revealing that the rate of increase in benefit payments is now surpassing the rate of contribution collections. “Total benefits paid increased from GH¢941.27 million in 2014 to over GH¢5.46 billion in 2023, while contributions only rose from GH¢1.78 billion to GH¢6.01 billion in the same period,” he stated. He warned that this imbalance, where the Trust pays out more than it collects, should be a source of great concern to all.
Impact of National Pensions Act/irregular payments
The director general pointed to legislative changes introduced by the National Pensions Act 2008 (Act 766) as a significant factor contributing to the current strain on SSNIT. “The lowering of the funding rate from 17.5 percent to 11 percent and the reduction of the vesting period from 240 to 180 months, combined with enhanced benefits, have further put a strain on the Trust,” he explained.
He also highlighted the challenge of irregular payments for public sector workers, particularly those under the controller and accountant general’s department. “Given that the Ghana government is the largest employer, many claimants are government workers retiring and coming for their benefits. This is a huge burden on the Trust,” Osafo-Maafo said.
Call for strategic action and innovation
To address these sustainability challenges, Osafo-Maafo urged stakeholders to take decisive and strategic action.
“These situations must provoke us into action. Our strategic direction should provide a framework that will guide us in surmounting the sustainability issues,” he emphasised.
He called for increased active membership and contributions, noting that the SEED (Self-Employed Enrolment Drive) initiative is currently trailing behind targets. “I entreat the DDG, Operations and Benefits, and your team to pick up the momentum by incorporating SEED in all operational activities,” he urged.
The director general also stressed the importance of innovation and technology in managing the pension scheme. “It is a must that we leverage technology — digital platforms, AI, and data analytics — to enhance member and client experience, streamline our processes, and improve investment decisions,” he said.
He announced plans to roll out the “SSNIT Digital Bouquet”, a digital technology solution aimed at improving service quality for SSNIT members.
A collective approach for a sustainable future
As Ghana faces growing economic pressures, Osafo-Maafo’s call for a more strategic, innovative, and collective approach to managing the nation’s pension scheme is both timely and crucial. The sustainability of SSNIT will depend on the successful implementation of these strategies and the active support of all stakeholders involved.
“Indeed, the character we exhibit out there is crucial for people to make informed choices of whether to join the Scheme or not,” the SSNIT director general concluded.