The Social Security and National Insurance Trust (SSNIT) has refuted a report from the International Labour Organization (ILO) that its reserves are depleting,
SSNIT says it currently has enough funds to continue paying accrued benefits to its members.
In a media release dated April 26, SSNIT’s management said the reports circulating that it will be unable to pay pensions by 2036 due to dwindling reserves are inaccurate.
“The SSNIT scheme presently receives contributions and has enough funds to pay accruing benefits due Members,” the release said in part.
SSNIT explained that as a partially funded scheme set up by law, pension payments are financed from contributions and investment returns rather than reserves.
“There has been steady growth in contributions…and investment income has been healthy and would offset any unexpected deficits that may arise,” the statement said.
It assured that the government is up to date with its contributions on behalf of public sector workers, and modalities are in place to service any outstanding amounts owed.
SSNIT emphasized it has never defaulted on pension payments since benefits were first paid in 1991.
The Trust said it would continue prudent management of the fund to meet pension obligations beyond the speculated 2036 depletion date mentioned in the disputed reports.
