The Vice presidential nominee of the opposition New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has promised an urgent review of the Social Security and National Insurance Trust (SSNIT) investments and costs to ensure its financial sustainability, if the party wins the 2016 elections.<\/p>\n
Speaking at the NPP manifesto launch at the Trade Fair Centre in Accra, Dr. Bawumia warned the current course of SSNIT would leave it and pensioners in a dire\u00a0situation.<\/p>\n
[contextly_sidebar id=”s0abgKu9YfFU7N0KqQ1rSWtvl3CgwWvD”]\u201cOur pensioners are under threat, currently the financial viability of the Social Security and National Insurance Trust is in question,\u201d he cautioned.<\/p>\n
In his address, Dr. Bawumia noted that, the World Bank in its 2016 report of governance of SSNIT, stated that “the actuarial valuation shows that the fund will become a cash flow negative in 2019 and all assets will be used up by 2031.\u201d<\/p>\n
\u201cAt this point, the benefits would\u00a0have to match the inflows and will lead to very significant cuts in the benefit for current pensioners. This is the World Bank telling us that SSNIT is collapsing and that would result in a cut in pensions.\u201d<\/p>\n
As part of the urgent undertakings to ensure the sustainability of SSNIT, Dr. Bawumia said an NPP government will ensure that “the funds of the National Pension\u2019s Regulatory Authority will be applied solely for the purpose of the development of pensions and we will fully implement section 103 of the pension act which assigns pension benefits for housing of workers.\u201d<\/p>\n
Eight Banks collapsing under this economy – Bawumia<\/strong><\/p>\n Dr. Bawumia also highlighted the governing National Democratic Congress\u2019 (NDC) handling of the economy, that has left eight banks also at the point of\u00a0collapse.<\/p>\n \u201cAfter eight years of mismanagement, the banking system has been pushed to dangerously fragile levels. Eight banks are currently on the edge of collapse,\u201d he also warned.<\/p>\n Dr. Bawumia\u00a0noted that, \u201cunder John Mahama, Ghana has now been classified as a country with a high risk of debt distress.\u201d<\/p>\n Despite the NDC asserting that the loans\u00a0it has been acquiring have been used for development projects, he\u00a0retorted that the debt has not been channeled into development as \u201cthe value of total government investment in infrastructure is just about $7 billion.\u201d<\/p>\n According to the IMF, \u201cmost of Ghana\u2019s borrowing under this John Mahama government has been spent on corruption and consumption rather than investment,\u201d The NPP running mate added.<\/p>\n –<\/p>\n By: Delali Adogla-Bessa\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" The Vice presidential nominee of the opposition New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has promised an urgent review of the Social Security and National Insurance Trust (SSNIT) investments and costs to ensure its financial sustainability, if the party wins the 2016 elections. Speaking at the NPP manifesto launch at the Trade Fair Centre in […]<\/p>\n","protected":false},"author":14,"featured_media":256387,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2647,32,2648,11],"tags":[389,2356,3,56,326],"yoast_head":"\n