A Tax Analyst, William Demitia, is advocating for a thorough discussion of the efficiency of SSNIT’s operations to assess the Trust’s ability to allow contributors draw down on funds to mitigate the impact of COVID-19.
Former President John Mahama has suggested that SSNIT contributors be allowed to access some of their contributions in these difficult times.
The Minority in Parliament has also called for a review of the SSNIT law to allow withdrawals from contributions.
However, the Social Security and National Insurance Trust, SSNIT, has rejected the proposals.
But Mr. Demitia told Citi Business News the proposal can be considered if it will not affect the efficient operations of SSNIT subsequently.
“Look at the current cash flow of SSNIT. How much are people contributing to the keeping of SSNIT every month. Is it able to meet the operational cost of SSNIT? Is it able to pay pensioners their monthly pension, and is it able to make the necessary investments so that when people call upon SSNIT to pay their pension, they can pay?”
“If we do that analysis and assessment then we realize that there is a surplus amount that can be given back to the contributors, that’s another conversation we can have. I only advise that, before we take a step on some of these measures, we have all the technical expertise. I am not an expert, but you must call the experts to come on board, look at the current situation, look at the impact of the proposals on SSNIT and its operations, and find out whether that is feasible. Yes, everybody is for it. Anyway, that you can get money back into the hands of people during a crisis is good enough because remember, we can only get out of it when people have the confidence to spend,” he said.
The outbreak of the coronavirus pandemic has resulted in job losses as businesses struggle to function fully.
Currently, Ghana has recorded 2, 719 cases with 294 recoveries and 18 deaths.
Restructure SSNIT pension scheme – CLOSAG
Meanwhile, the Civil and Local Government Staff Association, Ghana (CLOSAG) has petitioned President Akufo-Addo to restructure the SSNIT pension scheme to ensure the welfare of beneficiaries.
Following a revision of the Pensions Act for SSNIT to stop the payment of lump-sum benefits to pensioners from January 2020 under PNDC Law 247, workers who turn 60 years will no longer receive lump-sum payments from the Social Security and National Insurance Trust. Such contributors will now have to turn to the fund managers of their second-tier contribution for lump-sums.
Speaking at its closed-door 2020 May Day virtual celebration, the Executive Secretary of CLOGSAG, Isaac Bampoe-Addo said he believes a review of the scheme will improve the welfare of pensioners.
