SSNIT Exits Non Performing Investments

THE management of the Social Security and National Insurance Trust (SSNIT) has announced its decision to exit some of its investments that are not performing to expectation.

Though SSNIT recorded growth in its total investment portfolio, it observed that some of its essential investments in some distressed unlisted companies in various sectors of the economy were not performing.

The total investment portfolio of SSNIT as at the end of 2008 had increased by more than 32 percent from GH¢1.6 billion in the previous year to GH¢2.2 billion.

Speaking at the 5th stakeholder' forum in Accra, Kwasi A. Boatin, the Director General of SSNIT, noted that management of the trust had decided to explore various exit strategies for its non-performing investments to enhance the financial health of the scheme in future.

“We have directed the managements of the various companies involved to seek strategic partners to ensure a turn around,” he said.

Investment is one of the critical functions of the Trust in the management of funds that accrue from the contributions of stakeholders.

The scheme seeks to maximize returns on the contributions of its members to meet the payment of their benefits and cost of running it.

Kwame Peprah, Chairman of the Board of Trustees of SSNIT, admitted that the trust recorded progress, adding that some economic conditions in the second half of 2008 had affected the results of SSNIT.  

He stated that there was an increase in active contribution membership from 803,582 to 843,676, representing a 5 percent increase over the 2007 active contributor population.

Later in a question and answer session, the issue of the new pension reforms featured prominently as the stakeholders including workers, employers, fund managers, trustees and staff of SSNIT wanted to know more about the implementation of the three-tier Pension scheme.

The new pension law, which was promulgated in December 2008, is yet to become operational, as the legislative instrument that would give it the legal backing was not ready.

The SSNIT contributors had many unanswered questions about the new pension law and were a bit nervous about it.

However, the chairman of National Pension Authority (NPA), Kwame Asante told the gathering that his outfit would soon roll out an educational campaign to create public awareness.

In the meantime, he noted, SSNIT would manage the funds until the new pension reforms start in 2010.

Mr. Asante encouraged the trust to maintain proper accounts for contributors in order to ensure a smooth transfer.

He called on employers to comply with the statutory obligation by ensuring that all deductions were done and paid promptly, adding, “If we do not have any thing in the kitty, it would be impossible to run the scheme.”

Mr. Asante therefore urged stakeholders to corporate with the NPA as “it carries out its mandate for the mutual benefit of all.”

By Emelia Ennin Abbey