Vice President of IMANI Africa, Bright Simons, is advising Social Security and National Insurance Trust (SSNIT) to urgently change its investment strategies it is to see a turnaround from its current bleak standing.<\/p>\n
Speaking on Eyewitness News<\/strong>, Mr. Simons noted that about half of the money SSNIT has invested is generating negative returns.<\/p>\n [contextly_sidebar id=”91qdXg5HgkjXGp8ivFhkfB8Ezl0EqQzA”]”When you look at how much SSNIT invests and the mechanisms through which it invests, you have to start becoming very worried. No wonder SSNIT itself says that in 14 years, it will run out of money\u2026 45 percent of SSNIT\u2019s output now is trending towards negative returns. That is frightening.\u201d<\/p>\n “SSNIT\u2019s most profitable area is actually to go and compete with the Banks because when you look at its portfolio, it is the loans and things that are doing well. So we need to start reconfiguring the entire portfolio investment approach of SSNIT. That is very critical.\u201d<\/p>\n Mr. Simons explained\u00a0that SSNIT, on paper, is in a good enough position to provide enough security to pensioners given Ghana has a huge advantage, with one beneficiary to almost 10 active contributors, but SSNIT \u201cpays out benefits almost half of what it receives as contributions.\u201d<\/p>\n Among questions, he queried why, “it [SSNIT] has over four million members but of that, only about 1.5 to 1.6 million are active contributors.\u201d<\/p>\n He attributed this to government indebtedness, indicating that, “the government of Ghana owed SSNIT, for a while, nearly $150 million dollars and were defaulting and the private sector had only about 15 percent of the default rate and yet still, SSNIT had no strategy to go after the public sector.\u201d<\/p>\n Mr. Simons’ assessment resembled Vice President, Dr. Mahamudu Bawumia’s bleak projections in 2016 when he promised an urgent review of SSNIT investments and costs to ensure its financial sustainability.<\/p>\n Dr. Bawumia held that pensioners were under threat and that the World Bank in its 2016 report on\u00a0governance 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.<\/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.<\/p>\n –<\/p>\n By: Delali Adogla-Bessa\/citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Vice President of IMANI Africa, Bright Simons, is advising Social Security and National Insurance Trust (SSNIT) to urgently change its investment strategies it is to see a turnaround from its current bleak standing. Speaking on Eyewitness News, Mr. Simons noted that about half of the money SSNIT has invested is generating negative returns. [contextly_sidebar id=”91qdXg5HgkjXGp8ivFhkfB8Ezl0EqQzA”]”When […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,10,11],"tags":[10638,10639,8844],"yoast_head":"\n