Diverting SSNIT funds to health insurance could jeopardize workers pension

The International Monetary Fund (IMF) has taken issue with government over its planned diversion of one seventh of workers' social security contributions into the National Health Insurance Fund (NHIF).

According to the IMF, such a move "would further weaken the ability of the Social Security and National Insurance Trust (SSNIT) to cover its long term pension liabilities."

The Fund's position vindicates that of organized labour, which has persistently challenged government on the matter.

Government maintains that SSNIT will be able to meet all its obligations over the next 20 years without needing to raise workers' contribution rates, assuming the recent improvement in the Trust's investment returns was sustained.

Organised labour, led by the Trades Union Congress (TUC), which has vehemently kicked against the plan, is however not satisfied with this explanation and has not ruled out sending the matter to court should the Kufuor administration persist in this direction.

Government cancelled at the last minute plans to launch the National Health Insurance Scheme (NHIS) last week reportedly due to a chieftancy dispute at Nungua, venue for the launch.

From all indications, it is clear that government is adamant and prepared to go ahead with the diversion of the SSNIT funds, a move, which is certainly going to lead to a bitter show down with organized labour.

Trades Union Congress Secretary General, Kwasi Adu Amankwah told Public Agenda on Wednesday that the TUC's stand remains unchanged.

Most union members enjoy some form of health provision from their employers and union leaders have challenged government to find alternative means of funding the NHIS.

The TUC is currently working on transforming existing medical provisions of members into a private mutual health insurance, Adu Amankwah said.

Government's confidence to go ahead irrespective of organized labour's position is partly informed the poor turn out at a demonstration organized by the TUC to protest over the matter. Interpreting the low turn out to mean workers are not in support of the leaders position is erroneous, say sources close to the unions. They explained that when government representatives and union leaders met on Monday, September 22,2003 to discuss the matter, no deadlock was expected.

Following the deadlock and, given the speed with which the NPP administration was proceeding to pass the Health Insurance Bill [in 1993], organized labour had only a day to organize before going on its demonstration to publicly register their resentments.

The TUC, with a membership of about 400,000, accounts for almost half of the 900,000 contributors to SSNIT. Organised labour, that is the TUC, the Ghana National Association of Teachers, the Civil Servants' Association, the Ghana Registered Nurses Association and the Judicial Services Staff Association of Ghana, constitute the bulk of contributors to the scheme.