Government, through the Controller and Accountant General’s Department (CAGD), has settled the principal outstanding debt of GH¢1.1 billion owed the Social Security and National Insurance Trust (SSNIT).
The amount is in respect of contribution receivable from Government of Ghana employees’ First Tier social security contributions owed to the Trust as of 31st December 2020.
This came to light when the Director-General of SSNIT, Dr John Ofori-Tenkorang, appeared before the Public Accounts Committee (PAC) of Parliament on July 21, 2023, to answer questions relating to the findings raised by the Auditor-General in its 2021 report.
The outstanding debt of GH¢1,124,568,970.17 (principal only) owed by CAGD as of December 2020 has been paid. The penalty of GH¢3,209,818,256.22 as of December 2020 has not been paid.
Per Section 64(1) of the National Pensions Act, 2008 (Act 766), the Trust has imposed a penalty of 3 per cent on delayed payments by CAGD over the years to the tune of GH¢3,209,818,256.22. Management is in discussions with CAGD and the Ministry of Finance (MoF) to reconcile and settle, Dr Ofori-Tenkorang noted.
Most of the matters noted in the 2021 Auditor-General’s report are follow-ups on legacy issues spanning two decades, which were raised in the previous year’s report.
The Trust has, however, resolved the majority of the issues, and instituted measures and policies to prevent future occurrences.
About SSNIT
The Social Security and National Insurance Trust (SSNIT or the Trust) is a statutory public institution charged under the National Pensions Act, 2008 (Act 766 as amended by Act 883) with the administration of Ghana’s Basic National Social Security Scheme.
Currently, the Trust is the largest non-bank financial institution in Ghana. Its mandate is to cater for the First-Tier of the Three-Tier Pension Scheme.
The SSNIT Scheme replaces part of the lost income of Members due to Old Age, Invalidity or upon the death of a Member, where nominated dependant(s) receive a lump sum payment. It also pays Emigration benefits to non-Ghanaian Members who are leaving Ghana permanently.
The SSNIT Pension Scheme has an active membership of over 1.9 million. In July 2023, the Trust paid a total of GH¢369.40 million to some 239,415 pensioners. The highest pension earner receives GH¢169,725.89 per month, while the lowest-earning new pensioner gets GH¢300.00.
