The management of the Social Security and National Insurance Trust (SSNIT) has challenged the recent report by the International Labour Organisation (ILO) which stated that the Trust would not be able to pay benefits by 2036 due to diminishing reserves.
According to the ILO, the total income, including contributions, investment income, and other sources, will not be enough to cover annual expenses, including pension payments to retirees, by 2029.
The report further highlighted that from 2029, the total income will no longer be sufficient to cover expenditures, leading to a decline in reserves. By the year 2036, the reserves are expected to run out completely.
However, SSNIT has refuted these claims in a statement released on Friday, April 26. The Trust clarified that it does not use funds from its reserves to pay pension benefits, and there has been a consistent growth in contributions.
This growth is supported by the current demographics and efforts to bring in new employers and contributors.
Furthermore, SSNIT assured the public that it has never missed a pension payment in the past three decades and that the government is currently paying contributions on behalf of its employees.
The Trust also stated that it has sound investment income that can cover any unexpected deficits that may arise.
In conclusion, SSNIT dismissed the notion that it will not be able to sustain pension payments in the future and emphasized its commitment to ensuring the financial stability of the pension scheme.
