SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
SSNIT holds breakfast meeting for Employers

Published on 24 October, 2019.

The Management of SSNIT has held a breakfast meeting with one of its key stakeholders -Employers at the Swiss Spirit Hotel & Suites Alisa Accra on Thursday, 24th October, 2019. The meeting, was under the theme “Employers as partners in achieving compliance of the SSNIT Pension Scheme.”

It was aimed at strengthening the relationship between SSNIT and employers, deepen employers’ understanding of the operations of the First Tier Scheme and help employers appreciate the value of the social security contributions they pay for their workers as well as the positive impact it has on the country’s economy.

The occasion provided the platform for the employers to discuss challenges they faced in dealing with the Trust

Addressing the Employers, the Director-General of SSNIT, Dr. John Ofori-Tenkorang stressed the importance of employers and said the Trust cannot meet any of its obligations to the worker or the pensioner without the them.

“We recognise the critical link you provide between the Trust and workers. Even though social security contributions are paid for employees, you are the ones who do so on their behalf. When you deduct the 5.5% from their salaries, you add your portion of 13% and over the last twelve months, have remitted the 13.5% to SSNIT regularly,” he said.

The employers, who were selected from various sectors of the economy are among the 67.7% of registered employers in the private sector that have paid up their workers’ social security contributions. Dr. Ofori-Tenkorang commended the employers for not only fulfilling their civic responsibility but also contributing to the sustainability of the national pension scheme.

He however indicated that an amount of GHS64.67 Million was owed SSNIT by employers in the private sector as at the end of June this year. The DG insisted that SSNIT takes no delight in prosecuting employers but accrued debts must be collected. He said “if we fail to collect these debts, it does not absolve us of our responsibility to and obligations to the worker”

“We understand that businesses go through hard times that is why we engage employers who might for one reason or the other delay in complying. So when employers default and we show up with that demand notice, there is a 30-day grace period within which you can pay up or negotiate mutually beneficial terms of settlement. However, we are sometimes compelled to take legal action against recalcitrant employers because as I said, the law places an obligation on us to pay benefits to workers and/or their dependants”, he added.

The Director-General, there were 4,310 criminal cases pending in court against employers for various offences including failure to register establishments or workers, failure to submit contribution reports or employers’ records and failure to pay contributions and associated penalties as at the end of the first half of the year.

Dr. Ofori-Tenkorang stressed Management’s commitment to engendering confidence in the Scheme such that it is appealing to the self-employed.

He envisaged a Scheme where employers will voluntarily comply to the law by paying by the 14th of the following month without prompting from the Trust. This he said will cure the payment of needless penalties. “Payment of penalties is a huge cost to businesses and impairs organisational reputation, he said.

Speaking on the Trust’s investments, the Director-General indicated that only 5% of the Trust’s investments is offshore. “These investments are made with the objectives of long-term growth at a reasonable price and income generation whilst minimizing risk and optimizing returns.” The Trust’s total Asset Under Management (AUM) was 9.46 billion as at 2018 and 96.5% of this was performing well. These investments, according to Dr. Ofori-Tenkorang, have boosted job creation, stimulated economic growth, contributed immensely to the development of Ghana’s capital markets, helped some banks meet the minimum capital requirement by the Bank of Ghana and reduced the housing deficit in the country among others.

 

He entreated employers to contact their respective Compliance Officers for assistance if they encounter any challenge and also take advantage of the Trust’s digital platforms to do business.

The Director-General informed his guests that SSNIT will stop paying the 25% Lump Sum to new pensioners from January 2020. “As you may know, PNDC Law 247 sunsets in December. The last group of such workers will turn 60 by December 31, 2019. This implies that all workers who turn 60 from next year will have their benefits processed under the three tier pension scheme (Act 766).” He therefore advised employers to help their workers access their Lump Sum from their Second Tier Fund Managers.

He assured the meeting that Management remains focused on the core mandate of the Trust and will deliver on the obligation to workers and all contributors. The Trust spends over GHS250 Million monthly in paying pensions.

The meeting was attended by Mr. Michael Addo –  Deputy Director-General, Finance & Administration, Mr. Kofi Osafo-Maafo – Deputy Director-General, Investments and Development, Mrs. Laurette Korkor Otchere – Deputy Director-General, Operations & Benefits among other senior Management members.