The Social Security and National Insurance Trust (SSNIT) is taking significant steps to enhance its collection and payment processes through the use of digital platforms. The Trust as of May 2024, recorded an active membership of over two million people.
Of this, 1,298,713 members are from the private sector, representing 62.67% of the total. The public sector contributes 702,863 members (34.47%), while the self-employed account for 114,983 members, representing 2.71%.
This was disclosed at the 2024 Employers Breakfast Meeting in Accra. Delivering a presentation on maximizing the use of digital platforms to improve contribution collection and payment, Manger, Self Employed Enrollment Drive (SEED) Richard Manu stressed the importance of adopting digital platforms to improve contribution collection and payment.
This will enable SSNIT to meet its long-term liabilities, ensure the financial sustainability of the scheme, and strengthen risk management. Embracing digital solutions can also reduce administrative costs, improve operational efficiency, and build trust among members, contributors, employers, and other stakeholders.
He highlighted that SSNIT offers a unique pension benefit. The scheme pays members up to 60% of their average annual salary over a three-year period, a rate that surpasses the returns from other secure long-term investments like treasury bills. In addition, SSNIT annually indexes pensions to help maintain the purchasing power of retirees and guarantees pension payments for life, assuming the risk of longevity for its members.
He revealed that a key feature of the SSNIT scheme is the invalidity pension, which provides coverage for contributors who become permanently incapacitated. Additionally, the scheme includes a life policy that covers mortality risk, paying a survivor’s lump sum to beneficiaries of deceased contributors. Mr. Manu emphasized that SSNIT heavily depends on employer contributions to fulfill its financial obligations, including the payment of pensions and other benefits.
Employers are required to register all eligible workers with SSNIT and ensure they have valid SSNIT numbers. They must also deduct 5.5% from each employee’s basic salary and add an additional 13%, then remit 13.5% of the total to SSNIT. The remaining 5% goes to a Tier 2 Corporate Trustee chosen by the employer. By complying with these regulations, he said employers can benefit from improved productivity, increased worker morale, and industrial harmony. Compliance also enhances the reputation of businesses, aids in staff retention, and helps avoid penalties, legal actions, and fines.