Performance of SSNIT in Ghana from 1995-2005

The performance of the SSNIT pension scheme from 1995-2005 has been mixed. This is because while funding status, contributions received and benefits paid had improved over the years, other indicators like investment income, coverage rate, dependency ratio and processing time have not fared as well. Agency problems exists in the operations of SSNIT. This is due to the fact that there are political interferences that negatively affect the choice of investment and investment income. The book showed that the method of computing the pensionable income is an indication of poor scheme design because it can easily expose the scheme to abuse. SSNIT should review the use of the best three years average to ensure a more equitable system. The average of total years of contribution should be used. SSNIT should approach the government to review the legal and regulatory framework to resolve the politically based agency problem eminent in the running of the pension scheme.