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The former president in his appeal said due to the untold hardships COVID-19 has inflicted on the majority of Ghanaians, it will be prudent for the pensions insurer to allow some workers to access some of the monies they have paid over the years.
“Social security contributions are essentially an insurance scheme made not just for pensions in old age before we die. They are also made to help contributors in times of adversities such as this.
“Not all will come out and queue for food, but as has been done in other countries like St. Lucia, I think a token payment to all contributors of a certain token sum over three months would have afforded many the assurance of feeding their families during this abnormal times,” Mahama noted at his ‘Digital Conversation’ Thursday.
Mush as this suggestion looks genuine to help mitigate the economic challenges of workers in the country, it, however, contravenes the laws set to guide SSNIT in its operations.
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NDC presidential candidate, John Dramani Mahama
In this explainer, we list the reasons why the Social Security and National Insurance Trust (SSNIT) cannot, at any time, dole out the contributions to those on the scheme till they are retired.
The management of SSNIT is founded on the National Pensions Act 2008 and it conforms to the recommendations of the International Labour Organisation (ILO Convention 102).
In the National Pensions Act, 2008, Act 766 (as amended), (sections 34, 70, 71, 72, and 73) categorically states the benefits and the conditions under which SSNIT can pay those benefits.
Section 34 (d) states that: "ensure the provision of social protection for the working population for various contingencies including old age, invalidity, and death".
In Section 70 (b), it also states the conditions under which SSNIT can pay contributors. It states: "retires voluntarily on attaining the age of fifty-five years and has contributed to the social security fund for not less than fifteen years in the aggregate or one hundred and eighty months in the aggregate is entitled to a superannuation pension."
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SSNIT Boss Dr. John Ofori-Tenkorang
Section 71 focuses on the invalidity of a person and in (a) it states: "the member has contributed to the Fund for not less than twelve months within the last thirty-six months before the occurrence of the invalidity."
In Section 72 talks about lump-sum payments where "a member of the scheme dies, a lump sum benefit is payable to the deceased’s family who (a) are dependants of the deceased; and (b) have been validity nominated as beneficiaries of the deceased."
The Management of SSNIT in response to Mahama's suggestion said it “remains firmly committed to paying over GHS 213 million in monthly pensions to the 213,173 pensioners on the SSNIT payroll as well as honoring payments to all new pensioners that apply.”