The country’s teacher unions are calling for a total overhaul of the management of the Social Security and National Insurance Trust ( SSNIT).
This follows a recent ILO report which predicted that SSNIT will not be able to pay contributors in full by 2036.
Speaking to JoyNews, the President of the National Association of Graduate Teachers (NAGRAT), Angel Cabonu said the move will help to prevent a total collapse of the scheme.
“I don’t think I would ever support any increment, I would rather call for the change in the governance structure of SSNIT and make the contributors more representative on the board of SSNIT and ensure that SSNIT follows the rules and regulations in investing people’s money. That is what I will call for”, he said.
His comment follows a report by the International Labour Organisation (ILO), which projected a complete depletion of SSNIT’s reserve by 2036.
According to ILO, total income including contributions, investment income and other income, will no longer be sufficient to pay for annual expenditures including benefit payments to pensioners by 2029.
Among the major recommendations, the research suggested that contributions be increased.
SSNIT’s Chief Actuary, Joseph Poku, said although this was a good idea, SSNIT must follow some laid-down procedures before it can enforce any new increase beyond the current 18.5% of workers' pay from their basic salary.
However, the NAGRAT President says they will kick against any attempt to increase contribution.
“Why would you want us to increase the contribution rate when the outcome of your management is an indication that you have failed?
“How do we call for increment when an international body has determined that you have not prudently managed the institution?
“The little that we have given you, you have not been able to render account on your stewardship and you are calling for more money?”
Meanwhile, the teacher unions say they would go ahead with their threats to strike if a meeting between the government and the unions over tier-two contribution payments doesn’t favour the workers.
Credit: Mavis Sekyibea Addo