We have enough funds to pay members accruing benefits – SSNIT
The Management of the Social Security and National Insurance Trust (SSNIT) has rubbished claims that they will be unable to pay benefits by 2036 as a result of depletion in reserves.
There have been media reports alleging that SSNIT is projected to deplete its funds in meeting its financial commitments to beneficiaries in the future.
The report attributed to the International Labour Organisation shows that based on its actuarial valuation, SSNIT reserves are expected to reach zero by 2036.
But SSNIT in a statement said the claim is not factual and urged beneficiaries to disregard it.
According to SSNIT, it has enough funds to pay for accruing benefits for members.
It added that the pension scheme as set up by ACT 766, is a partially funded scheme, and that pension payments are funded from contributions and returns from investments.
“There has been steady growth in contributions. This growth is well-supported by the current demographics and the dedicated activity of our staff in getting new employees and contributors to join the scheme. 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. The Trust has never missed any pension payments since 1991, when the pension scheme was introduced. The Trust therefore assures all Members and the public that it will continue to ensure prudent management of the Fund to meet its benefit payment obligations beyond 2036”, SSNIT emphasized.
