Journal of Business & Financial Affairs

Solvency and Sustainability of the SSNIT Pension Scheme

Abstract

Daniel Kwabla-King

The objective of the study was to assess the solvency and sustainability of the SSNIT Pension Scheme. For this, secondary data were obtained from the Financial Statement of SSNIT spanning the period 2005-2016 was analyzed using Microsoft Excel 2013. A number of management staff were also interviewed. The results concluded that against the objectives set in the National Pensions Act, 2008 (Act 766) pensions in Ghana have still not been unified seven years into the coming into force of the Act. It was also established that benefits and administrative cost are increasing faster than increase in contribution inflows. It was also established that the scheme is close to reaching its equilibrium and may not be sustainable into the future. The study suggested that SSNIT should make recommendations to government to implement the provisions of the Act fully. Also, there is the need for stakeholder consultations for a review of the scheme to either increase the contribution rate, or increase the compulsory retirement age or both. Finally, currents provision in the law where a cap is placed on the contributions allowed from a member should be reviewed in favour of rather capping benefits paid to member on their retirement.