We’re committed to paying Past Credit — SSNIT

The management of the Social Security and National Insurance Trust (SSNIT) says it is fully committed to paying all Past Credit based on an agreement reached by the Ministry of Employment and Labour Relations, the Ministry of Finance, the National Pensions Regulatory Authority (NPRA), SSNIT and representatives of the Forum for Public Sector Registered Pension Scheme (FORUM).

It said pursuant to the agreement reached by the parties, “SSNIT had recomputed the Past Credit of members using 100 per cent Treasury bill rate compounded quarterly as captured in that agreement, and that the result of this Past Credit computation is currently shown on members’ statements of account”.

The SSNIT stated this in reaction to the press conference held last Monday by the FORUM.

Concerns of FORUM

The FORUM had accused the SSNIT of foot-dragging with the implementation of the modalities for the Past Credit.

It said SSNIT was reluctant to "come out with modalities for the calculation on Past Credit earned as of December 2009, based on a 100 per cent Treasury bill rate compounded quarterly, and the issuance of statements to each contributor”.

The forum further opined that it saw the stance of SSNIT as a tactical move to sabotage the smooth implementation of the three-tier pension scheme which was scheduled to be fully operational with effect from January 1, 2029.

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Detailed statements

But a statement issued from the Public Affairs Unit of SSNIT yesterday explained that SSNIT was currently providing detailed statements on Past Credit to all members who contributed to the scheme prior to January 2010.

It said there had been a series of meetings involving the Ministry of Employment and Labour Relations, the NPRA, SSNIT and representatives of the FORUM on the implementation of Past Credit.

 “Contrary to the statement by the FORUM, SSNIT does not intend to derail the full implementation of the three-tier pension scheme. That is why the trust has continuously engaged the parties on the subject matter,” the statement said.

Full disclosure

It said SSNIT had provided full disclosure of how it computed the Past Credit to the NPRA, as well as how payment of Past Credit would be implemented from January, 2020, adding that “this the trust has made the FORUM aware of”.

“The Trust, as an operator of the first-tier pension scheme, is fully implementing the provisions of the National Pensions Act (Act 766) relating to the first-tier and effective January 1, 2020, all members who qualify for pension will be processed and paid under the National Pensions Act.

“The trust wishes to assure all SSNIT members that it is committed and ready to pay all benefits with SSNIT when they fall due, in accordance with the National Pensions Act, 2008 (Act 766 as amended by Act 883), it said.