SSNIT increases investment portfolio

Accra, Nov 19, GNA - The total investment portfolio of the Social Security and National Insurance Trust (SSNIT) as at December 2008, stood at GH 2.2 billion cedis against GH 1.6 billion cedis in 2007. The increase represented a growth of 32 per cent on same position coming in the mist of the considerable increase in gross investment income which grew by 45 per cent from GH 108.6 million cedis in 2007 to GH 157.4 million cedis in 2008.

"Notwithstanding this commendable performance in the investment activities of the Trust, We also know that some of SSNIT investment assets have not performed as expected, Mr Kwame Peprah Chairman, Board of Trustees, SSNIT, said at a stakeholder's forum on Thursday in Accra. He described such assets as essentially, investment in some distressed unlisted companies in various sectors of the economy and expressed the Board's support to Management's decision to explore various exit strategies from such investment to enhance the financial health of the scheme in the years ahead.

On the operational front, Mr Peprah announced an increase in active contributors' membership from 803, 582 to 843,676 which was a five per cent increase over 2007 active contributors' population. He said new employers and workers also increased from 3,953 to 4,238, representing seven per cent between 2007 and 2008 and new workers from 102,567 to 119, 748, an increase of 16.8 per cent.

On the new pension scheme, Mr Peprah noted that SNNIT was being given the needed support and resources to make the implementation of the new scheme smooth and urged all employers and other stakeholders to cooperate with management to see to the successfully running of the scheme. He said the National Pension Regulatory Authority is collaborating with the Trust to embark on an educational campaign to create stakeholders awareness before the scheme took off in January 2010.

Mr Kwasi Boatin, Director-General, SSNIT said a total amount of GH 418.75 million cedis, representing an increase of 8.8 per cent was collected as contributions last year over the amount of GH 384.97 million cedis collected in 2007 under its membership and contribution collection. He said total arrears owed by establishments amounted to GH 71.54 million cedis in 2008 as against GH 54.44 million cedis in 2007, an increase of 31.4 per cent while the average monthly salary on which contributions were paid was GH 333.32, an increase over the average salary of GH 216.99 in 2007.

On benefits and pensioners, a total number of benefits processed for the year were 106,168 an increase of 9.82 per cent over 2007 figure of 96, 671 and total value of benefit paid during the year amounted to GH 163.43 million cedis, recording an increa se of 39.6 per cent over the 2007 amount of GH 117.08 million cedis.

Mr Boatin indicated that the size of the fund also increased by 31.96 per cent from GH 1,639.8 million cedis as at the end of 2007 to GH 2,163.9 million cedis as at the end of 2008 whilst the real return on investment was 2.4 per cent last year compared to 10.9 per cent in 2007. Most participants at the forum expressed concern about the delay in paying pensioners' their entitlements and called on the Scheme managers to quicken the action in the processing of benefits. 19 Nov, 09