President Akuffo-Addo Lauds SSNIT’s Financial Turnaround of GH¢230m Surplus

 

At the 12th Quadrennial Delegates Congress of the Trades Union Congress (TUC) held on August 20, 2024, President Nana Addo Dankwa Akufo-Addo took the opportunity to highlight significant developments within the Social Security and National Insurance Trust (SSNIT).

Addressing the delegates at the Pentecost Convention Centre in Gomoa Fetteh, Central Region, the President underscored the improved performance and strategic decisions that have bolstered SSNIT’s financial health and reassured workers of a secure pension future.

In his address, President Akufo-Addo expressed his satisfaction with SSNIT’s recent operational surplus of GH¢230 million, marking a significant milestone in the Trust’s efforts to enhance its financial standing.

He pointed out that this surplus is a reflection of the government’s commitment to ensuring that SSNIT remains a robust and reliable institution capable of meeting the pension needs of Ghanaian workers.

The President emphasized that such financial health is critical for the long-term sustainability of the pension scheme and serves as a vital indicator of the Trust’s capability to fulfill its obligations to contributors.

He also took the opportunity to address a recent controversy surrounding SSNIT’s efforts to offload non-performing assets in its hotel portfolio and clarified that, the transaction, which was eventually aborted, had been the only instance in recent history where external investors expressed interest in SSNIT’s holdings.

He urged all stakeholders to approach such matters with caution whilst emphasizing the importance of making decisions that protect the long-term interests of pensioners.

The President’s remarks were clearly a call for measured and informed discussions on the management of SSNIT’s assets, ensuring that decisions are made with the best interests of contributors in mind.

Further elaborating on the improvements within the pension sector, President Akufo-Addo noted the increase in active contributors to the SSNIT scheme.

From a base of 1.35 million contributors in 2016, the number has grown to 2 million as of April 2024. This expansion, according to the President, is a testament to the trust and confidence that Ghanaians have in SSNIT. He also highlighted the role of the National Pensions Regulatory Authority (NPRA) in increasing its presence across the country, with the expansion of zonal offices from two in 2016 to six in 2024, thereby bringing pension services closer to the people.

In addition to these achievements, the President mentioned the growth in pension coverage within the informal sector. The number of informal sector workers covered by pensions has seen a remarkable increase from 91,253 in 2016 to 817,444 currently.

This expansion, he noted, is crucial for ensuring that all Ghanaian workers, regardless of their sector, have access to pension benefits, thereby promoting financial security and social protection for all.

President Akufo-Addo also drew attention to the growth in total assets under management within the pension sector and reported that these assets had increased from GH¢15.7 billion in December 2016 to GH¢71.69 billion in March 2024, representing a substantial increase of 350%.

He emphasized that the growth of pension fund assets is not just a statistic but a crucial factor in the country’s broader economic development.

These funds, he noted, serve as vital capital for investment, infrastructure development, and job creation, all of which are essential for the nation’s economic growth and stability.

In his concluding remarks, President Akufo-Addo reiterated his government’s commitment to expanding pension coverage, sustaining the current pensions regime, and enhancing the adequacy of pension payouts and assured delegates that these efforts are aimed at securing the financial futures of all Ghanaian workers, both in the formal and informal sectors.

The President’s address at the TUC Congress served not only as a reassurance to Ghanaian workers of the government’s commitment to safeguarding their pensions but also as a call to all stakeholders to support the efforts aimed at ensuring the long-term sustainability of the SSNIT scheme.

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