The Social Security And National Insurance Trust: Is There The Need For Reforms

"This paper provides an assessment of the long-term financial viability of SSNIT based on the Auditor-General's reports for 1994 and 1997. It discusses some of the factors that adversely affect the long-term viability of the Trust as well as the issue of whether there is the need for reforms. It is suggested in the paper that the long term viability of the SSNIT is threatened by the high administrative costs, bad investments and the changing demographic structure of Ghana's population, which is exacerbated by the HIV/AIDS pandemic. It concludes by noting that these problems are a result of 'the incentive structure' associated with the scheme coupled with the government's excessive interference in the running of the Trust. It therefore lends support to the idea of breaking SSNIT's monopoly and recommends a Chilean-type scheme for Ghana."