SSNIT ANNUAL REPORT O6 i

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					                                                  KOFORIDUA AREA OFFICE (Eastern & Volta)
                                                  Area Office                       P.O. Box 586        (081) 22445/23101/23106/23086/22294
                                                  Area Manager                      P.O. Box 586        (081) 23252 (Direct) • Fax: 23125
                                                  Deputy Area Manager                            “      (081) 22701
                                                  Branch Manager, Koforidua         P.O. Box 586        (081) 23173 (Tel/Fax)



2006
                                                  Koforidua Branch                               "      (081) 22445/23101/23106/23086/22294
                                                  Kade Branch                       P.O. Box 96(0882) 2855


ANNUAL
                                                  Asamankese Day Office             P.O. Box 96-
                                                  Nkawkaw Branch                    P.O. Box 48(0842) 22143/22540/22541

REPORT                                                                                                  Fax: (0842) 22421
                                                  Donkokrom Day Office              P.O. Box 48-
                                                  Branch Manager, Nkawkaw                        "      (0842) 22421 (Tel/Fax)
                                                  Akim Oda Branch                   P.O. Box 197        (0882) 2203 (Direct), 2586
                                                  Akim Oda Branch Manager           P.O. Box 197        (0882) 2585 (Tel/Fax)
                                                  Somanya Branch                    P.O. Box 75(0872) 22220
                                                  Branch Manager, Mampong Akwapim   P.O. Box 91(0872) 22017 (Tel/Fax)
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                  Mampong Akwapim Branch            P.O. Box 91(0872) 22019
                                                  Nsawam Day Office                 P.O. Box 91-
                                                  Ho Branch                         P.O. Box 321        (091) 26657/26658
                                                  Ho Branch Manager                              “      (091) 26457 (Direct) • Fax: (091) 26571
                                                  Hohoe Branch                      P.O. Box 20(0935) 22089
                                                  Hohoe Branch Manager              P.O. Box 20(0935) 22020 (Tel/Fax)
                                                  Nkwanta Day Office                P.O. Box 1          (0935) 2020


                                                  TAMALE AREA OFFICE (Northern, Upper East & West)
                                                  Area Manager, Tamale              P.O. Box 390        (071) 23789 (Direct)
                                                  Area Office, Tamale               P.O. Box 390        (071) 22095/22266 • Fax: (071) 22266
                                                  Tamale Branch Manager                          "      (071) 23747
                                                  Tamale Branch                                  “      (071) 22096 • Fax: (071) 22509
                                                  Damongo Day Office                             “      -




                                                                                                                                                  2006
                                                  Salaga Day Office                              “      -
                                                  Yendi Branch Manager              P.O. Box 46(0744) 22197
                                                  Yendi Branch                      P.O. Box 46(0744) 22111
                                                  Bimbila Day Office                P.O. Box 46-
                                                  Branch Manager, Wa                P.O. Box 81(0756) 22435/6 • Fax: (0756) 22434




                                                                                                                                                  ANNUAL
                                                  Wa Branch                                      “      (0756) 22435/6
                                                  Tumu Day Office                                “      -




                                                                                                                                                  REPORT
                                                  Lawra Branch                      P.O. Box 64(0756) 22819/50502 • Fax: (0756) 22819
                                                  Bolgatanga Branch                 P.O. Box 82(072) 22370/23025/22266
                                                  Sandema Day Office                             “      -
                                                  Branch Manager, Bolgatanga                     “      (072) 23031 • Fax (072) 22222
                                                  Branch Manager, Bawku             P.O. Box 100        (0743) 22197 • Fax: (0743) 22189
                                                  Bawku Branch                      P.O. Box 100        (0743) 22276
  41                                              Zebilla Day Office                P.O. Box 100        -
                                                  Branch Manager, Gambaga           P.O. Box 28(071) 23029
                                                  Gambaga Branch                    P.O. Box 28(071) 24125
                                                  Walewale Day Office               P.O. Box 28-
                                                                                                                           KUMASI AREA OFFICE (Ashanti)
                                                                                                                           Area Manager                     P.O. Box 4270   (051) 23220 (Direct) • Fax: (051) 27242
                                                                                                                           Deputy Area Manager                       “      (051) 27227 (Direct) • Fax: (051) 27227
                                                                                                                           Area Office, Kumasi                       “      (051) 27210, 27211, 27218, 24927/24902
                                                                                                                           Branch Manager, Adum                      "      (051) 27226 (Direct) • Fax: (051) 27243




2006                                                                                                                                                                                                                            2006
                                                                                                                           Deputy Manager, Adum                      "      (051) 27219
                                                                                                                           Information Desk, Adum                    "      (051) 27218
                                                                                                                           Adum Branch                               “      (051) 24902
                                                                                                                           Asafo Branch Manager                      "      (051) 23345 • Fax (051) 22763

ANNUAL                                                                                                                                                                                                                         ANNUAL
                                                                                                                           Asafo Branch                              “      (051) 22266/23085 • Fax: (051) 22763


REPORT                                                                                                                                                                                                                         REPORT
                                                                                                                           Konongo Branch Manager           P.O. Box 82     (0531) 24202 • Fax: (0531) 24552
                                                                                                                           Konongo Branch Office            P.O. Box 82     (0531) 24470
                                                                                                                           Dunkwa Branch Manager            P.O. Box 239    (0372) 28252 • Fax: (0372) 28418
                                                                                                                           Dunkwa Branch                    P.O. Box 239    (0372) 28256/28285

                                                     CORPORATE VISION AND                                                  Branch Manager, Obuasi
                                                                                                                           Archives Manager, Obuasi
                                                                                                                                                            P.O. Box 165
                                                                                                                                                            P.O. Box 165
                                                                                                                                                                            (0582) 41726 • Fax: (0582) 42497
                                                                                                                                                                            (0582) 41792

                                                     MISSION STATEMENTS                                                    Obuasi Branch
                                                                                                                           Mampong Ashanti Branch
                                                                                                                                                            P.O. Box 165
                                                                                                                                                            P.O. Box 35
                                                                                                                                                                            (0582) 41727/40272
                                                                                                                                                                            (0561) 22318 • Fax: (0561) 22171
                                                                                                                           Mampong Ashanti Branch Manager   P.O. Box 35     (0561) 22170
                                                                                                                           Atebubu Day Office               P.O. Box 35     -
      SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                      SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                           Sefwi-Wiawso Branch              P.O. Box 187    (0392) 22065
                                                                                                                           Bibiani Day Office               P.O. Box 187    -
                                                                                                                           Bekwai Branch                    P.O. Box 210    (0572) 20297
                                                     Our Vision                                                            Bekwai Branch Manager            P.O. Box 210    (0572) 20208 (Tel/Fax)


                                                     To develop SSNIT into a World-Class Financial Institution dedicated   SUNYANI AREA OFFICE (Brong Ahafo)
                                                     to the promotion of Economic Security of the Ghanaian Worker.         Area Manager, Sunyani            P.O. Box 411    (061) 27258 • Fax: (061) 27197
                                                                                                                           Sunyani Area Office              P.O. Box 411    (061) 23665
                                                                                                                           Area Accountant                  P.O. Box 411    (061) 28363
                                                                                                                           Sunyani Branch                   P.O. Box 411    (061) 23665
                                                                                                                           Sunyani Branch Manager                    “      (061) 23532 • Fax: (061) 27239

                                                     Our Mission
                                                                                                                           Dormaa Day Office                P.O. Box 411    -
                                                                                                                           Wenchi Agency                    P.O. Box 65     (0652) 22205
                                                                                                                           Wenchi Agency Manager            P.O. Box 65     (0652) 22353
                                                                                                                           Goaso Branch Manager             P.O. Box 91     (061) 28267
                                                     SSNIT is committed to providing Cutting-Edge Income Replacement
                                                                                                                           Goaso Branch                              “      (061) 28267
                                                     Schemes to Ghanaian Workers and their dependants in the event of      Techiman Branch                  P.O. Box 7      (0653) 91697 • Fax: (0653) 22091
                                                     Old Age, Permanent Disability or Death through a Motivated Staff      Techiman Branch Manager          P.O. Box 7      (0653) 91487 • Fax: (0653) 22091
                                                     and Diligent Leadership.                                              Kintampo Day Office              P.O. Box 7      -


                                                                                                                           TAKORADI AREA OFFICE (Western & Central)
                                                                                                                           Area Office, Takoradi            P.O. Box 611    (031) 23565-6, 21994/22108
                                                                                                                           Area Manager                     P.O. Box 611    (031) 24787 (Direct) • Fax: 24246
                                                                                                                           Takoradi Branch Manager          P.O. Box 611    (031) 24628 Direct
                                                                                                                           Takoradi Branch                  P.O. Box 611    (031) 23565/6 • Fax: 24685
                                                                                                                           Tarkwa Branch                    P.O. Box 224    (0362) 20332 • Fax: 20880
                                                                                                                           Asankragua Day Office            P.O. Box 224    -
                                                                                                                           Tarkwa Branch Manager            P.O. Box 224    (0362) 20881
                                                                                                                           Axim Branch                      P.O. Box 61     (0342) 22303/22238
                                                                                                                           Half Assini Day Office           P.O. Box 61     -
                                                                                                                           Axim Branch Manager              P.O. Box 61     (0342) 22302

  i                                                                                                                                                                                                                                                                  40
                                                                                                                                                            Fax: 22327
                                                                                                                           Cape Coast Branch                P.O. Box 602    (042) 32991/5, 30381, 300382-4
                                                                                                                           Cape Coast Branch Manager                 “      (042) 32841/32843 (Direct)
                                                                                                                                                                            Fax (042) 32843
                                                                                                                           Assin Fosu Branch                P.O. Box 134    (0372) 26682, 28979
                                                                                                                           Twifo Praso Day Office           P.O. Box 134    -
                                                                 SSNIT AREA & BRANCH OFFICES

                                                                                         Address           Telephone



2006                                                                                                                                                                                                               2006
                                                  ACCRA AREA OFFICES
                                                  Area Office                            P.O. Box MB.149
                                                                                                  “       (021) 506224/506227/506211

ANNUAL                                                                                                                                                                                                            ANNUAL
                                                  Area Manager                                    “       (021) 506230 • Fax: 506230
                                                  Adabraka Branch                                 “       (021) 669493, 669504, 683142

REPORT                                                                                                                                                                                                            REPORT
                                                  Adabraka Branch Manager                         “       (021) 675761 (Direct) • Fax: (021) 667762
                                                  Deputy Branch Manager, Adabraka                 “       (021) 693120
                                                  Network Computer                                “       (021) 667652
                                                  Customer Care Service                           “       (021) 669557
                                                  Accra Industrial Area Branch                    “       232997/232998 • Fax: 232999
                                                  Accra Industrial Area Branch Manager            “       222661 (Direct) • Fax: 232999
                                                  Accra Central Branch                            “       664987, 664988, 663903,
                                                  Accra Central Branch Manager
                                                  Accra Central Customer Care Service
                                                                                                  “
                                                                                                  “
                                                                                                          (021) 664421 • Fax: 665791
                                                                                                          (021) 662100 (TUC Number)                          CONTENTS
                                                  I.T. Network                                    “       (021) 664259
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                         SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                  Legon Branch                                    “       (021) 506224/506226-9
                                                  Legon Branch Manager                            “       (021) 506210
                                                  Weija Branch                           P.O. Box WJ 318                                                   I CORPORATE VISION AND MISSION STATEMENTS
                                                                                                          (021) 850215/6 • Fax 850219
                                                  Weija Branch Manager                            “       (021) 850220
                                                  Weija Deputy Branch Manager                     “       (021) 850217                                     I BOARD OF DIRECTORS AND REGISTERED OFFICE
                                                  Achimota Branch                        P.O. Box MB.149
                                                                                                          (021) 400489 (Direct)                            I EXECUTIVE TEAM
                                                                                                          402210/402300 • Fax: 401530
                                                  Kokomlemle Branch                      P.O. Box MB. 149
                                                                                                          (021) 237691 • Fax: 233792
                                                  Kokomlemle I.T. Network                         “       (021) 237678
                                                  Kokomlemle PABX                                 “       (021) 237743, 237773
                                                  Korle-Bu Branch                                 “       660172/664831 • Fax: 660174                        REPORTS
                                                  Agona Swedru Branch                    P.O. Box 399
                                                                                                          (041) 20399/20985, 20986
                                                  Agona Swedru Branch Manager                     “       (041) 20984
                                                  Breman Asikuma Branch                  P.O. Box 98      (041) 20985                                        I Chairman of SSNIT Board of Directors

                                                  TEMA AREA OFFICES                                                                                          I Director General’s Report
                                                  Area Office                            P.O. Box 713, Tema
                                                                                                            (022) 204007, 213507, 213509
                                                  Area Manager                                    “         (022) 204155                                        •   Investment Report
                                                  Osu R.E. Branch                                 “         (022) 774216, 760846/760847
                                                                                                            774217 • Fax: (022) 760848
                                                  Osu R.E. Branch Manager                          “        (022) 760847, 774216                                •   Finance Report
                                                  Osu R.E. Customer Service                        “        (022) 760848
                                                  Tema C.2 Branch Manager                P.O. Box 713, Tema
                                                                                                                                                                •   Auditors’ Report
                                                                                                            (022) 204565/205350 • Fax: (022) 205349
                                                  Tema C.2 Branch Deputy Mgrs                      “        (022) 213508
                                                  Tema C.2 Branch                        P.O. Box 713, Tema                                                     •   Financial Statement
                                                                                                            (022) 204007/204155/
                                                                                                            (022) 213507/213509Tema Harbour Branch
                                                                                                  “         (022) 206802/207375 - 80 • Fax: (022) 206653     I Notes to the Financial Statement
                                                  Tema Harbour Branch Manager                      “        (022) 206234 Direct
                                                  Tema Harbour Branch Deputy Mgr.                  “        (022) 207381 Direct
                                                                                                                                                             I Location of SSNIT Area & Branch Offices
  39                                                                                                                                                                                                                                                    ii
                                                  Tema Harbour, Secretary                         “         (022) 206653
                                                  Tema Information Desk                  P.O. Box 713, Tema (022) 210805
                                                  Tema East Branch                                “         (021) 7012081/7012083
                                                  Tema East Branch Manager                         “        (021) 7012082 • Fax: 7012082
                                                  Denu Branch                            P.O. Box 82        (0962) 30319, 30945, 30946, 30497
                                                  Denu Branch Manager                    P.O. Box 82        (0962) 30327 • Tel/Fax; 020 2012095
                                                  Teshie/Nungua Branch                   P.O. Box MB.149 (021) 711022, 711023, 711024, 711025
                                                                       BOARD OF DIRECTORS                                              REPORT AND FINANCIAL STATEMENTS-2006


                                                                                                                                       8.   Ghana Education Trust Fund
                                                                                                                                            The Ghana Education Trust Fund had made available to The Trust a total amount of ¢264.180 billion for
                                                                                                                                            onward lending to students under the Students Loan Scheme.




2006                                                                                                                                                                                                                                                                        2006
                                                                                                                                       9.   Contributions
                                                                                                                                                                                                                                    2006               2005


ANNUAL                                                                                                                                                                                                                                                                     ANNUAL
                                                                                                                                                                                                                               ¢'million           ¢'million


REPORT                                                                                                                                                                                                                                                                     REPORT
                                                                                                                                            Total contributions receivable                                                    3,298,230            2,234,908
                                                                                                                                            Cash received                                                                   (2,867,914)          (1,905,767)
                                                     MR. JOHN SAKA ADDO            NANA ADU GYAMFI 1             MR. KWASI OSEI                                                                                             ---------------     ---------------
                                                                                                                                            Outstanding Contributions                                                           430,316              329,141
                                                                                                                                                                                                                           =========           =========

                                                                                                                                       10. Investment Income
                                                                                                                                            Government and Registered Bonds                                                       44,875               2,470
                                                                                                                                            Term Deposits and Treasury Bills                                                    372,306             437,291
                                                                                                                                            Students Loan                                                                         21,599              72,062
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                  SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                            Corporate Loans                                                                     108,903             101,390
                                                                                                                                            Rent                                                                                  32,783              26,393
                                                                                                                                            Dividends                                                                           112,927               78,222
                                                                                                                                            Miscellaneous                                                                       619,903               47,791
                                                                                DR. ANTHONY AKOTO OSEI                                                                                                                         ------------        -----------
                                                                                                                                                                                                                              1,313,296             765,619
                                                                                                                                                                                                                              =======              ======


                                                                                                                                       11. Pensions
                                                  HON. JOE KINGSLEY HACKMAN                                 MRS. ROSE KARIKARI-ANANG
                                                                                                                                            Old age and invalidity                                                              657,718             496,991
                                                                                                                                            Death and survivors                                                                 140,987             133,249
                                                                                                                                                                                                                                -----------        -----------
                                                                                                                                                                                                                                798,705             630,240
                                                                                                                                                                                                                                ======             ======


                                                                                                                                       12. General and Administrative expenses
                                                                                                                                            General and Administrative expenses include:
                                                                                MR. ABRAHAM T. DJAN OKINE                                   Depreciation of fixed assets                                                         21,877              19,898
                                                                                                                                            Auditors remuneration                                                                   500                 480
                                                                                                                                            Directors emoluments                                                                    485                 458
                                                                                                                                                                                                                                ======              ======

                                                                                                                                       13. Transfer to National Health Insurance Scheme
                                                                                                                                            Transfers made are in accordance with National Health Insurance Act, 2003 (ACT 650) Section 78 (1b) which
                                                                                                                                            requires 2.5% of each member's 17.5% contribution to the SSNIT Pension Fund be paid into the National
                                                                                                              ALHAJI YAKUBU ZIBLIM          Health Insurance Fund.
                                                  MR. KWASI ADU-AMANKWAH

                                                                                                                                       14. Tax
                                                                                                                                            Under Section 17 of the Social Security Law, 1991 (PNDCL 247) the Trust is exempt from Corporate tax and
                                                                                MR. WILSON KUSI-ATANSAH                                     such other taxes and duties as may be determined by the Minister of Finance.


                                                                                                                                       15. Contingent Liabilities and Commitments
                                                                                                                                            There were a number of legal proceedings outstanding against the Trust at 31 December 2006. These are
                                                                                                                                            pending litigations that may result in a material liability to the Trust. It is estimated that the maximum amount

  1                                                                                                                                         would not exceed ¢60.218 billion (2005 -¢2.24 billion).
                                                                                                                                                                                                                                                                                                                 38




                                                  MR. T. K. ABU BAKR BIBILAZU   DR. MAHAMADU BAWUMIA           MRS. GINA AMA BLAY
                                                  REPORT AND FINANCIAL STATEMENTS-2006
                                                                                                                                                      BOARD OF DIRECTORS
                                                                                              2006             2005
                                                                                                                           1. MR. JOHN SAKA ADDO
                                                                                           ¢'million        ¢'million
                                                                                                                              Chairman of the Board of Directors and Government Representative.
                                                    Properties


2006                                                                                                                                                                                                                                         2006
                                                                                                                              Chairman of Prudential Bank Limited and a Member of the Council of State.
                                                    Commercial                              332,763           135,032
                                                    Residential housing                     145,148           144,046      2. NANA ADU GYAMFI 1 (Dr Edmund O. T. Prempeh)
                                                                                            -----------      -----------
                                                                                            477,911           279,078         Government Representative.

ANNUAL                                                                                                                                                                                                                                      ANNUAL
                                                                                            -----------      -----------      Legal Practitioner and Business Executive.


REPORT                                                                                                                                                                                                                                      REPORT
                                                    Associated Units
                                                                                                                           3. *HON. JOE KINGSLEY HACKMAN
                                                    GICEL                                         908            2,908
                                                                                                                              Government Representative.
                                                    SSNIT Hospital                            45,601            54,877        A Member of Parliament and a Building Engineer
                                                    Others                                    32,853            34,983
                                                                                              ---------        ---------
                                                                                              79,362            92,768     4. *MRS. GINA AMA BLAY
                                                                                              ---------        ---------      Government Representative and Managing Director of Western
                                                                                                                              Publications, President of the Private Newspaper/Publishers Association of Ghana
                                                    Bonds
                                                                                                                              (PRINPAG)
                                                    HFC Mortgage Bonds                      170,206           151,286
                                                    Corporate Bonds                         353,044
                                                                                          -------------    -------------   5. DR. ANTHONY AKOTO OSEI
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                            543,646           171,682         Representative of Ministry of Finance.
                                                                                          -------------    -------------
                                                                                          6,695,086         5,497,451         A Minister of State.
                                                                                          =======          =======
                                                                                                                           6. MRS. ROSE KARIKARI-ANANG
                                                    (b) Short Term Investments                                                Representative of Ghana Employers’ Association.
                                                    Call Deposits                           556,266           213,738         Executive Director, Ghana Employers’ Association.
                                                    Term Deposits/Treasury Bills          4,033,567        2,878,004
                                                    Corporate Loans                           13,635           13,636      7. MR. KWASI ADU-AMANKWAH
                                                                                         --------------   --------------      Representative of Trades Union Congress.
                                                                                          4,603,468        3,105,378
                                                                                         ========         ========            Secretary-General of Trades Union Congress.

                                                  4. Real Estate under Construction                                        8. *MR. ABRAHAM T. DJAN OKINE
                                                    Balance at 1 January                    706,372           621,204         Representative of Trade Union Congress; Director of the Labour Enterprise Trust
                                                    Transfer to Fixed Assets              (201,672)                    -
                                                    Additions during the year               148,722             85,168     9. ALHAJI YAKUBU ZIBLIM
                                                                                           -----------       -----------      Representative of the Civil Servants’ Association.
                                                    At 31 December                         653,422           706,372          President, Civil Servants’ Association of Ghana and a Director
                                                                                           ======            ======
                                                                                                                              of Administration, Ghana Civil Service
                                                  5. Inventory
                                                    Stationery                                 6,506            4,502      10. MR. WILSON KUSI-ATANSAH
                                                    Fuel and lubricants                          319               625         Representative of Ghana National Association of Teachers.
                                                                                               -------          -------        Deputy General Secretary, Ghana National Association of Teachers.
                                                                                               7,658            5,956
                                                                                               ====             ====
                                                                                                                           11. MR. THOMPSON KUDUO ABU BAKR BIBILAZU
                                                  6. Receivables                                                               Representative of Ministry of Manpower Development.
                                                    Investment income                         44,832            46,085         Director of Management Dev. & Productivity Institute, (MDPI).
                                                    Staff debtors                             87,327            61,743
                                                    Prepayments                                 2,673            2,258     12 *DR. MAHAMADU BAWUMIA
                                                    Advances to contractors                   55,159            20,570        Representative of Bank of Ghana. Deputy Governor, Bank of Ghana
                                                    Deposits for houses                        1,954             5,973
                                                                                                                           13. MR. KWASI OSEI
                                                    Sundry debtors                            58,262            60,242
                                                                                            -----------      -----------       Director-General, SSNIT.
                                                                                            250,207           196,871
                                                                                            ======           ======

                                                  7. Payables                                                              *   Joined the Board on 21st November, 2006.
  37                                                Retention Fees                            16,431            3,125                                                                                                                                                             2
                                                                                                                           • Mr. Emmanuel Asiedu-Mante, a Representative of the Bank of Ghana retired from the Board in May 2006
                                                    Suppliers and accrued liabilities       150,803            59,854
                                                    Rent received in advance                      276           4,062
                                                    Sundry payables                           55,455           30,349
                                                                                            -----------       ---------
                                                                                            222,965            97,390
                                                                                            ======            =====
                                                                      REGISTERED OFFICE                          REPORT AND FINANCIAL STATEMENTS-2006



                                                                                                                 2. Property, Plant & Equipment
                                                  COMPANY SECRETARY          -   Mrs Lucy G. Lamptey
                                                                                                                                            Land &                      Furniture &         Motor      Capital Work



2006                                                                                                                                                                                                                                                 2006
                                                                                                                                          Buildings     Equipment           Fittings      Vehicles       In Progress           Total
                                                  SOLICITOR                  -   Mrs Lucy G. Lamptey               Cost                   ¢'million      ¢'million        ¢'million      ¢'million         ¢'million        ¢'million



ANNUAL                                                                                                                                                                                                                                              ANNUAL
                                                                                                                                            50,233         64,126           26,247         36,641            16,328          193,575
                                                  REGISTERED OFFICE          -   PENSION HOUSE
                                                                                                                   Additions                        -               -         3,884        12,796            16,175            32,855

REPORT                                                                                                                                                                                                                                              REPORT
                                                                                 PENSION ROAD
                                                                                                                   Disposals                        -      (1,070)             (552)       (3,166)                    -        (4,788)
                                                                                 ACCRA
                                                                                                                   Transfer                   2,479         27,596                   -             -       (30,075)                   -
                                                                                                                                            ---------      ----------       ----------    ----------       -----------      -----------
                                                                                                                                            52,712          90,652           29,579        46,271              2,428         221,642
                                                  AUDITORS                   -   Deloitte & Touche                                          =====         ======           ======          =====           ======           ======
                                                                                 Chartered Accountants
                                                                                                                   Depreciation
                                                                                 4 Liberation Road
                                                                                                                   At 1 January             17,602         45,268           20,202         24,853                     -      107,925
                                                                                 P. O. Box GP 453                  Charge for the year          919          9,979            3,331         7,648                     -        21,877
                                                                                 Accra                             Disposals                        -         (968)            (413)       (3,070)                   -         (4,451)
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                           SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                            ---------      ---------        ---------     ----------           -------      -----------
                                                                                                                   At 31 December           18,521         54,279           23,120         29,431                    -       125,351
                                                                                                                                            ---------      ---------        ---------     ----------           -------      -----------

                                                                                                                   Net book value
                                                                                                                   31 December 2006                                                                                           96,291
                                                  PIX                                                                                                                                                                         =====
                                                                                                                   31 December 2005                                                                                           85,650
                                                                                                                                                                                                                              =====


                                                                                                                   Disposal Schedule
                                                                                                                                                                           Accum.                                              Profit
                                                                                                                                                             Cost           Depn.            NBV           Proceeds       on disposal
                                                                                                                                                         ¢'million        ¢'million      ¢'million         ¢'million        ¢'million

                                                                                                                   Motor Vehicle                             3,166          (3,070)             96             1,252            1,156
                                                                                                                   Equipment                                 1,070             (968)          102                119               17
                                                                                                                   Furniture & Fittings                        552             (413)          139                237               98
                                                                                                                                                           ---------        ---------         -----            -------          -------
                                                                                                                                                             4,788          (4,451)           337              1,608            1,271
                                                                                                                                                           =====            =====             ===              ====             ====


                                                                                                                 3. Investments 2006
                                                                                                                                                                                                                2005            2005
                                                                                                                                                                                                           ¢'million        ¢'million
                                                                                                                   (a) Long Term Investments
                                                                                                                   Equities
                                                  BANKERS:                                                         Listed Companies                                                                       2,857,985        2,067,037

                                                                             •   SG-SSB Limited                    Unlisted Companies                                                                       718,101           758,365
                                                                                                                                                                                                         --------------   --------------
                                                                             •   Ghana Commercial Bank Ltd.                                                                                               3,576,086        2,825,402
                                                                                                                                                                                                         --------------   --------------
                                                                             •   Merchant Bank (Ghana)Ltd
                                                                                                                   Corporate Loans
                                                                             •   The Trust Bank Limited
                                                                                                                   Gross                                                                                  1,060,313        1,247,589
                                                                             •   Agricultural Development Bank     Provision                                                                              (278,574)         (266,848)
  3                                                                                                                                                                                                                                                                                       36
                                                                             •   Standard Chartered Bank Ltd.                                                                                             -------------    -------------
                                                                                                                                                                                                            781,739           980,741
                                                                             •   Barclays Bank Limited                                                                                                    -------------    -------------
                                                                             •   Ghana International Bank PLC
                                                                             •   Ecobank (Ghana) Limited           Students Loan                                                                         1,236,342         1,147,780
                                                                                                                                                                                                         -------------    --------------
                                                                             •   HFC Bank Limited                                                                                                              2005              2005
                                                  REPORT AND FINANCIAL STATEMENTS-2006
                                                                                                                                                                                                                       HIGHLIGHTS
                                                    e) Valuation of Investments
                                                       Investments are included in the net assets statements as follows:                                                      I A total amount of ¢2,868 billion was collected as contributions in 2006 as against ¢1,906 billion in 2005,




2006                                                                                                                                                                                                                                                                                                   2006
                                                       Investments quoted on the Ghana Stock Exchange are valued at mid-market price at the close of business on                 representing an increase of 50.47%.
                                                       the balance sheet date. The difference between the opening and closing mid market prices for the year is dealt
                                                       with in the movement of net assets statement in the revenue account.
                                                                                                                                                                              I Total arrears owed by establishments were ¢430.32 billion.

ANNUAL                                                 Unquoted investments are shown at cost and a provision is only made where, in the opinion of the Directors,
                                                                                                                                                                                                                                                                                                      ANNUAL
REPORT                                                                                                                                                                                                                                                                                                REPORT
                                                       there is a permanent diminution in value. Where there has been a permanent diminution in the value of an
                                                                                                                                                                              I Average monthly salary was ¢2,052,876.77.
                                                       investment, it is recognised as an expense in the period in which the diminution is identified.

                                                       A general provision for corporate loan impairment is established to cover losses that are judged to be present
                                                                                                                                                                              I The contributing membership as at December 2006 was 1,211,620.
                                                       in the lending portfolio at the balance sheet date, but which have not been specifically identified as such. This
                                                       provision is based on an analysis of the circumstances of the borrower.
                                                                                                                                                                              I Total number of claims processed were 86,093, an increase of 10.18% over 2005.
                                                       When a loan is deemed uncollectible, it is written off against the related provision for impairments. Subsequent
                                                       recoveries are credited to the income statement, if previously written off.
                                                                                                                                                                              I Total value of benefits payments ¢798.71 billion.
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                             SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                       HFC Bonds are stated at fair value based on the inflation adjustments. All gains and losses realised from the
                                                       inflation adjustments are reported as movements in the net assets statements.
                                                                                                                                                                              I Average benefits processing time – 49 days.
                                                    (f) Investment Properties
                                                        Investment properties are treated as long term investments and carried at market values determined
                                                        periodically. Investment properties are not subject to depreciation. Increases in their carrying amounts are          I Total number of pensioners was 73,311, an increase of 6.36% over 2005.
                                                        credited to the movements of net assets. Decreases that offset previous increases of the same asset are charged
                                                        against the movement of net assets. All other decreases are charged to the revenue account.
                                                                                                                                                                              I A total number of 25,132 establishments were covered under the Scheme; 25,017 private and
                                                    (g) Foreign Currency Transactions                                                                                            115 subvented.
                                                        Transactions in foreign currencies during the year are converted into cedis at prevailing rates on the dates of
                                                        the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date
                                                        are translated into cedis at the rates of exchange ruling on that date. The resulting gains and losses are dealt      I Pension was indexed by an average of 20.0%
                                                        with in the revenue account.

                                                                                                                                                                              I Minimum Survivors Benefit ¢12,551,479.23
                                                    (h) Actuarial Position
                                                        The financial statements summarise the transactions and net assets of the Scheme. The financial statements
                                                        do not take account of liabilities to pay pensions and other benefits in the future.                                  I Monthly Pension Benefit ranged between ¢150,000 and ¢76,843,629.26 in year 2006.

                                                       The financial and actuarial status of the Scheme is assessed triennially by an independent consulting actuary.
                                                                                                                                                                              I 25% Lump Sum option ranged between ¢4,141.61 and ¢1,434,610,492.30
                                                    (i) Property, Plant & Equipment
                                                        Land and buildings are stated at fair values after revaluation less depreciation. All other fixed assets are stated
                                                        at their historical cost less depreciation.                                                                           I Fund size increased by 27.2% from ¢9.29 trillion - ¢11.82 trillion.


                                                       Depreciation of assets is calculated to write off the cost or revalued amount on a straight line basis over the
                                                                                                                                                                              I 2nd Stakeholders forum was held in October 2006
                                                       expected useful lives of the assets concerned.

                                                       The principal rates used are as follows:
                                                                                                                                                                              I SSNIT held shares in 23 out of 31 companies listed on the Ghana Stock Exchange.
                                                       Freehold properties                              5%
                                                       Leasehold properties                  Over     the unexpired period of the lease
                                                       Motor vehicles                                 25%                                                                     I Total value of SSNIT’s listed shares - ¢2, 857.98 billion.
                                                       Furniture                                      25%
  35                                                   Equipment                                      20%                                                                                                                                                                                                                                   4
                                                                                                                                                                              I Real return on investment was 4.3%.
                                                    (j) Inventory
                                                        Inventory is valued at the lower of cost and net realisable value. Cost includes all direct expenditure
                                                        incurred in bringing the goods to their present location.
                                                                EXECUTIVE TEAM                        REPORT AND FINANCIAL STATEMENTS-2006



                                                                                                      Fund Account
                                                                                                                                                                                                          2006            2005




2006                                                                                                                                                                                                                                            2006
                                                                                                                                                                                               Note    ¢'million       ¢'million
                                                                                                      Income
                                                                                                      Contributions received                                                                     9    2,867,914        1,905,767


ANNUAL                                                                                                                                                                                                                                         ANNUAL
                                                                                                      Investment Income                                                                         10    1,313,296          765,619
                                                                                                      Other Income                                                                                        34,154          12,119

REPORT                                                                                                                                                                                                                                         REPORT
                                                                                                                                                                                                      -------------   -------------
                                                                                                                                                                                                      4,215,364        2,683,505
                                                                                                                                                                                                      -------------   -------------
                                                                                                      Expenditure
                                                   MR. KWASI OSEI             MR. B. K. GLYMIN JNR.   Benefit Paid /Pensions                                                                    11      798,705          630,240
                                                                                                      General and Administrative Expenses                                                       12      518,287          401,033
                                                                                                                                                                                                      -------------   -------------
                                                                                                                                                                                                      1,316,992        1,031,273
                                                                                                                                                                                                      -------------   -------------

                                                                                                      Surplus of Income over Expenditure                                                              2,898,372        1,652,232
                                                                                                      Transfer to National Health Insurance Scheme                                              13     (409,702)       (272,252)
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                      SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                                                      -------------   -------------
                                                                                                      Net Surplus                                                                                     2,488,670        1,379,980
                                                                                                                                                                                                      =======         =======
                                                                                                      Movement in Net Assets
                                                                                                      Surplus of Income over Expenditure                                                              2,488,670       1,379,980
                                                                                                      Net Increase/(Decrease) in the value of Investments                                                 39,207       (868,032)
                                                                                                                                                                                                      -------------     -----------
                                                                                                      Net current year movement                                                                       2,527,877          511,948
                                                                                                                                                                                                      =======         =======
                                                                                                      The Accounting policies and notes form an integral part of these financial statements.

                                                  MR. KWASI BOATIN            MRS. GIFTY ANTERKYI


                                                                                                      Notes to the Financial Statements
                                                                                                      For the year ended 31st December, 2006
                                                                                                      1. Accounting Policies
                                                                                                           The following are the principal accounting policies adopted and applied consistently by the Trust.

                                                                                                           (a) Basis of Accounting
                                                                                                               The Financial Statements are prepared under the historical cost convention as modified by the revaluation of
                                                                                                               certain fixed and investment assets and in accordance with the Ghana National Accounting Standards and
                                                                                                               relevant International Financial Reporting Standards.

                                                                                                           (b) Contributions
                                                  MRS. LUCY LAMPTEY         MR. KWABENA OSEI BOATEN            Contributions are accounted for on a cash basis. An accrual basis is not considered appropriate because it
                                                                                                               would result in substantial debtor accounts which may not be recoverable.

                                                                                                                The contributions rates used are stipulated in the Social Security Law, 1991(PNDCL 247) and are as follows:
                                                                                                                Workers                                           5% of Consolidated Salary
                                                                                                                Employers' contribution                           12.5% of Consolidated Salary


                                                                                                           c) Investment Income
                                                                                                              Investment securities include debt and equity securities which management intends to hold until maturity and

  5                                                                                                                                                                                                                                                                                  34
                                                                                                              are stated at cost. Interest earned on investment securities is reported as interest income. Dividends received
                                                                                                              are included separately individend income.


                                                                                                           d) Benefits Paid
                                                                                                              Benefits paid represent all valid benefit claims paid during the year. These include lump sum payments made
                                                   DR. DARIUS OSEI           MR. O. K. ABBU-BONSRA            under the old Provident Fund Scheme.
                                                  REPORT AND FINANCIAL STATEMENTS-2006




                                                                           FNANCIAL STATEMENT 2006

2006                                                                                                                                                                                                                                                                                             2006
                                                                                                                                                                                                                EXECUTIVE TEAM
                                                  FINANCIAL STATEMENT
ANNUAL                                                                                                                                                                                                                                                                                          ANNUAL
                                                  For the year ended 31st December, 2006
REPORT                                                                                                                                                                                                                                                                                          REPORT
                                                                                                                                                                            MR KWASI OSEI                         -        DIRECTOR-GENERAL


                                                  Net Assets Statement
                                                                                                                                         2006                       2005
                                                                                                                                                                            MR B. K. GLYMIN JNR.                  -        GENERAL MANAGER, INVESTMENT AND
                                                                                                                     Note           ¢'million               ¢'million
                                                                                                                                                                                                                           DEVELOPMENT
                                                  Non-Current Assets
                                                  Property, Plant & Equipment                                            2             96,291                  85,650
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                       SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                  Long Term Investments                                               3(a)         6,695,086               5,497,451
                                                  Real Estate under Construction                                         4           653,422                706,372         MR KWASI BOATIN                       -        GENERAL MANAGER, FINANCE
                                                                                                                                     -----------            -----------
                                                                                                                                  7,444,799                6,289,473
                                                                                                                                     -----------            -----------     MRS GIFTY ANTERKYI                    -        GENERAL MANAGER, HUMAN RESOURCES
                                                  Current Assets
                                                  Inventories                                                            5              7,658                       5,956
                                                  Receivables                                                            6           250,207                 196,871
                                                                                                                                                                            MRS LUCY LAMPTEY                      -        GENERAL MANAGER, ADMIN/LEGAL
                                                  Investments-Short Term                                              3(b)         4,603,468               3,105,378
                                                  Cash & Bank Balances                                                                    920                 55,922
                                                                                                                                  -------------           -------------
                                                                                                                                  4,862,253                3,364,127
                                                                                                                                  -------------           -------------     MR KWABENA OSEI BOATEN                -        GENERAL MANAGER, MANAGEMENT
                                                  Current Liabilities
                                                  Payables                                                               7         (222,965)                 (97,390)                                                      INFORMATION SYSTEM

                                                  Ghana Education Trust Fund                                             8          (264,180)              (264,180)
                                                                                                                                   -------------          -------------
                                                                                                                                   (487,145)               (361,570)
                                                                                                                                   -------------          -------------
                                                                                                                                                                            DR DARIUS OSEI                        -        GENERAL MANAGER, MEDICAL SERVICES
                                                  Net Current Assets                                                               4,375,108               3,002,557
                                                                                                                                  --------------          -------------
                                                  Total Assets Less Current Liabilities                                          11,819,907                9,292,030
                                                                                                                                  --------------          -------------
                                                  Represented By                                                                                                            MR O. K. ABBU-BONSRA                  -          GENERAL MANAGER, OPERATIONS


                                                  Net Assets at 1st January                                                       9,292,030                8,780,082
                                                  Current Year Movement                                                            2,527,877                 511,948
                                                                                                                                  --------------          -------------
                                                  Net assets at 31st December                                                    11,819,907                9,292,030        • Mr Ras Boateng, Deputy Director General was seconded by the Government of Ghana to the National Health
                                                                                                                                  --------------          -------------        Insurance Secretariat as its Executive Secretary.

                                                  The financial statements were approved by the Board of Directors on 11th October, 2007 and were signed on its

  33                                                                                                                                                                                                                                                                                                                                  6
                                                  behalf by:



                                                        ------------------------------                                             ------------------------------
                                                        Chairman of the Board                                                           Director-General
                                                                           THE CHAIRMAN’S REPORT                                                                                REPORT AND FINANCIAL STATEMENTS-2006



                                                                                                                                                                                Independent Auditors Report to the Members of the
                                                                                                                  Investment income grew by 71.53% from ¢765.62
                                                                                                                                                                                Trust on the Social Security and National Insurance Trust

2006                                                                                                                                                                                                                                                                                                                   2006
                                                                                                                  billion in 2005 to ¢1,313.30 billion in 2006. The total
                                                                                                                  income from investment accounted for 31.15% of the
                                                                                                                                                                                We have audited the accompanying financial statements of Social Security and National Insurance Trust as at 31st
                                                                                                                  total revenue of ¢4,215.36 billion that accrued to the

ANNUAL                                                                                                                                                                                                                                                                                                                ANNUAL
                                                                                                                                                                                December, 2006.
                                                                                                                  Trust.


REPORT                                                                                                                                                                                                                                                                                                                REPORT
                                                                                                                  The Trust is showing consistently improved performance
                                                                                                                                                                                Directors' responsibility for the financial statements
                                                                                                                  in its investment activities to preserve the financial        The directors are responsible for the preparation and fair presentation of these financial statements in accordance with
                                                                                                                  health of the social security scheme. The (geometric)         the Companies Code 1963, (Act 179). These responsibilities include: designing, implementing and maintaining
                                                                                                                  mean real investment return over the past five years was      internal controls relevant to the preparation and fair presentation of financial statements that are free from material
                                                                                                                  6.9%.                                                         misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
                                                                                                                                                                                accounting estimates that are reasonable in the circumstances.
                                                                                                                  Indeed, the Social Security Fund continued its steady
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                             SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                  growth through the year 2006 with a year end Fund size
                                                                                                                                                                                Auditors' responsibility
                                                                                                                  of ¢11.82 trillion, a growth of 27.23% from December
                                                                                                                                                                                Our responsibility is to express an opinion on these financial statements based on our audit. We conduct our audit
                                                                                                                  2005.
                                                                                                                                                                                in accordance with International Standards on Auditing. Those standards require that we comply with ethical

                                                                                                                  As part of efforts aimed at promoting the private equity      requirements and plan and perform the audit to obtain reasonable assurance as to whether the financial statements
                                                                                                                  and venture capital industry, we executed an agreement        are free from material misstatement.
                                                                                                                  in 2006 with Fidelity Capital Partners (FCP) to outsource

                                                                  MR. JOHN SAKA ADDO                              $US5 million to Fidelity Equity Fund II, a private equity     Basis of opinion
                                                                                                                  and venture capital fund, managed by FCP. We expect           An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
                                                                                                                  to benefit from FCP’s professional fund management
                                                                                                                                                                                statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of
                                                  I am pleased to present to you the report of the                expertise.
                                                                                                                                                                                material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the
                                                  performance of the Trust for the financial year 2006.
                                                                                                                                                                                auditor considers internal controls relevant to the entity's preparation and fair presentation of the financial statements
                                                                                                                  To enhance efficiency in the management of our real
                                                                                                                                                                                in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
                                                  The year saw the Trust recording significant growth in          estate investments, we signed an agreement with BROLL
                                                                                                                  Ghana Limited, a professional real estate management          an opinion on the effectiveness of the entity's internal controls. An audit also includes evaluating the appropriateness
                                                  investment income and contribution collection.
                                                                                                                  company in December 2006, to manage seven of our              of accounting policies used and the reasonableness of accounting estimates made by management, as well as

                                                  As many would recall, in 2005 the Trust recorded a              commercial properties.                                        evaluating the overall presentation of the financial statements.

                                                  marked reduction in investment income due to a
                                                                                                                  The Trust continued with its policy of providing needed       We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
                                                  significant decline in interest rates and also the relatively
                                                                                                                  liquidity to the financial sector by way of lending to the
                                                  lacklustre performance of the stock market. These no                                                                          opinion.
                                                                                                                  private sector through selected financial institutions. For
                                                  doubt affected the overall investment returns. In spite of
                                                                                                                  example, to assist the building industry, SSNIT made
                                                  the downturn in 2005, the Trust remained strong                                                                               Opinion
                                                                                                                  available ¢100.0 billion to the HFC Bank Limited for on
                                                  financially. We are happy to report that the results for                                                                      In our opinion, the Trust has kept proper accounting records and the financial statements are in agreement with the
                                                                                                                  lending to estate developers to construct houses at the
                                                  the financial year 2006 saw impressive overall                                                                                records in all material respects and give in the prescribed manner, information required by the Companies Code
                                                                                                                  Dunkonah Housing Development site.                By this
                                                  investment returns.                                                                                                           1963, (Act 179) and the Social Security Law, 1991(PNDCL 247). The financial statements give a true and fair view of
                                                                                                                  arrangement, we benefit directly from the credit
                                                                                                                  management expertise of the banks and leasing                 the financial position of the Trust as at 31 December 2006, and of its financial performance for the year then ended,
                                                  The Trust recorded a positive real return of 4.3% in            companies.                                                    and are drawn up in accordance with the Ghana National Accounting Standards issued by the Institute of Chartered
                                                  2006, showing a recovery from the negative 8.4% real
  7                                                                                                                                                                                                                                                                                                                                                         32
                                                                                                                                                                                Accountants, Ghana and relevant International Financial Reporting Standards.
                                                  return made in 2005. This improved performance was              The Fifth Triennial Actuarial Valuation of the SSNIT
                                                  due partly to gains from the revaluation of some major          scheme was carried out by the Social Security
                                                                                                                                                                                DELOITTE & TOUCHE
                                                  equity investments such as Ecobank Transnational                Department of the International Labour Organisation
                                                                                                                                                                                Chartered Accountants
                                                  Incorporated and partly to improved dividend and                (ILO) and we are happy to state that the report confirmed
                                                                                                                                                                                Accra, Ghana
                                                  interest income.                                                the financial soundness of the SSNIT Scheme.
                                                                                                                                                                                         We strongly believe that with this trend, stakeholders are   The Student Loans Programme has always been a thorny
                                                  REPORT AND FINANCIAL STATEMENTS-2006
                                                                                                                                                                                         assured of a financially healthy social security scheme      issue for the Trust and a diversion from the Trust’s core
                                                                                                                                                                                         capable of discharging its obligation to members for the     mandate. Fortunately, a new Student Loan Trust has been
                                                  5. Pensioners                                                                                                                          foreseeable future.                                          set up by the Government to operate a loan scheme for
                                                      During the year, the number of pensioners increased from 68,925 to 73,311(2005:63,030 to 68,925).                                                                                               students. This organisation will eventually take over the




2006                                                                                                                                                                                                                                                                                                                           2006
                                                                                                                                                                                                                                                      entire student loan administration in the country. For
                                                                                                                                                                                         The year 2006 witnessed a phenomenal growth in
                                                                                                                                                                                                                                                      now, SSNIT is assisting the new Student Loan Trust to set
                                                  6. Actuarial Valuation                                                                                                                 contributions. The Trust collected an amount of ¢2,868
                                                                                                                                                                                                                                                      up the requisite administrative structures to operate the
                                                      It is the policy of The Trust to arrange for an external actuarial valuation of the Scheme every three years. The last             billion as against the ¢1,906 billion collected in 2005.

ANNUAL                                                                                                                                                                                                                                                                                                                        ANNUAL
                                                                                                                                                                                                                                                      scheme.
                                                      valuation was as at 31st December, 2005. The Actuary's principal conclusion was that the Scheme as at                              This represents an increase of 50.47%. The increase


REPORT                                                                                                                                                                                                                                                                                                                        REPORT
                                                      31st December, 2005 was financially sound. The Directors considered the Scheme as at 31st December, 2005 to                        resulted from the receipt of outstanding contributions for   Towards the end of the financial year, the board of
                                                      be adequate to pay pensions and other benefits in future.                                                                          previous years due from some key stakeholders.               directors of the Trust was reconstituted and this saw the
                                                                                                                                                                                                                                                      arrival of four new members. We welcome these new
                                                  7. Investments                                                                                                                         While we have enjoyed the co-operation of the majority       members and hope that the scheme will benefit from
                                                      The Trust is the only legally authorised Institution to operate a social insurance pension scheme in Ghana and                     of our member employers in terms of compliance, there        their experiences. I wish to take this opportunity to thank
                                                      consequently has the responsibility, amongst others, for investing the Scheme's resources in order to fulfil its                   are still a sizable number who have not regularly met        my colleagues who served their term dutifully and have
                                                      obligations to current and prospective pensioners. This entails diversified investment of the Scheme's resources                                                                                left.
                                                                                                                                                                                         their statutory obligations. The Trust will continue to
                                                      into promising areas of the Ghanaian economy, in particular, the financial, manufacturing and service sectors,                     aggressively pursue these employers to retrieve the




                                                                                                                                                                                                                                                                                                                     SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                      The Government’s White Paper on the new pension
                                                      and residential and commercial properties.                                                                                         contribution arrears they owe the Trust. Currently, these
                                                                                                                                                                                                                                                      reforms has come out and we are co-operating with the
                                                                                                                                                                                         arrears amount to ¢430.32 billion, representing 3.64% of
                                                                                                                                                                                                                                                      Pension Reform Implementation Committee in its work
                                                      The Investment portfolio is mostly locally invested and structured into short, medium and long term investments.                   the fund.                                                    to craft the necessary legislations to give legal backing to
                                                      Foreign earnings which are quite small are invested in fixed deposits overseas as and when received. The main
                                                                                                                                                                                                                                                      the recommended reforms.
                                                      categories of the investments are Government stocks, bonds, equities, residential and commercial properties,                       I need to indicate that the top 100 delinquent enterprises
                                                      loans and short term cash deposits. The composition of the Scheme's Investment portfolio at 31st December,                         accounted for 57.55% (or, ¢247.64 billion) of the total      The Trust continued to enjoy the support and
                                                      2006 was as follows:                                                                                                               indebtedness. The Trust is engaged in discussion with the    collaboration of international bodies such as the
                                                                                                             2006                                    2005                                                                                             International Social Security Association and the
                                                                                                                                                                                         Accountant General in respect of the arrears owed by
                                                                                                                                    Rate of                                Rate of                                                                    International Labour Organization.
                                                                                                                                                                                         institutions that are state owned.
                                                                                                         Portfolio                  Return       Portfolio                 Return
                                                                                                                 %                        %              %                         %                                                                  On behalf of the Board, I would like to thank the
                                                                                                                                                                                         Student loan recoveries have continued to improve over
                                                                                                                                                                                                                                                      Management and Staff and all the Stakeholders for
                                                                                                                                                                                         the last few years. We have recovered ¢236.6 billion,
                                                                                                                                                                                                                                                      helping the Board achieve its objective of building a
                                                      Short Term Investments                                  38.5                       12.1         33.3                       16.7
                                                                                                                                                                                         representing 15.84% of the amount due, through outright      sustainable social security scheme for the workers of this
                                                      Long Term Investments                                   41.0                       18.7         42.4                       (5.8)   payments, social security contributions and deductions       country.
                                                      Students Loans                                          10.3                       10.3         12.3                       15.1    from guarantors’ benefits. We are recovering at the rate

                                                      Associated Units                                          0.7                         -           1.4                          -   of ¢5 billion monthly.                                       Thank you

                                                      Properties                                                9.5                      14.5         10.6                       17.9
                                                                                                            --------                                --------
                                                                                                            100.0                                   100.0
                                                                                                            --------                                --------
                                                  The Trust has equity holdings of 5% and above in 53 companies incorporated in Ghana.



                                                  By order of the Board:




                                                        ------------------------------                                                          ------------------------------
                                                        Chairman of the Board                                                                      Director-General

  31                                                                                                                                                                                                                                                                                                                                                                8
                                                         11th October, 2007                                                                               11th October, 2007
 REPORT AND FINANCIAL STATEMENTS-2006

Report of the Directors


                                                                                                                                     2006
The Directors submit their Report together with the audited Financial Statements of the Social Security and National
Insurance Trust for the year ended 31st December 2006.


1. The Trust                                                                                                                        ANNUAL
                                                                                                                                    REPORT
   The Trust manages the Social Security and National Insurance Trust (SSNIT) and operates the Social Security
   Pensions Scheme in accordance with the Social Security Law 1991, PNDCL 247. Employees of Companies
   operating in Ghana are required by Law to be members of the Scheme. The Directors particular responsibilities
   include the administration of membership records, the collection and payment of contributions into The Fund,
   the payment of benefits and the management of assets of the Scheme.


2. Statement of Directors' Responsibilities
   The Directors are responsible for the preparation of the Financial Statements for each financial year which give a




                                                                                                                           SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
   true and fair view of the state of affairs of the Trust. In preparing the Financial Statements, the Directors have
   selected suitable accounting estimates that are reasonable and prudent and have followed Ghana National
   Accounting Standards.


   The Directors are responsible for ensuring that the Trust keeps proper accounting records that disclose with
   reasonable accuracy at any time the financial position of the Trust. The Directors are also responsible for
   safeguarding the assets of the Trust and taking reasonable steps for the prevention and detection of fraud and other
   irregularities.


3. Changes in Directorship
   On the 21st of November, 2006 a newly constituted board was inaugurated by the President of the Republic of
   Ghana.The following were appointed to the Board:
   Dr. Mahamadu Bawumia
   Mr. Abraham T. D. Okine
   Hon. J. K. Hackman
   Mrs. Gina Ama Blay


   Dr. Mahamadu Bawumia and Mr. Abraham T. D Okine represented the Bank of Ghana and the Trades Union
   Congress respectively. The new Government representatives on the Board are Hon. J. K. Hackman and Mrs.
   Gina Ama Blay.


   Mrs. Faustina Mensah and Messrs E. Asiedu Mante and Napoleon Kpoh retired from the Board.


4. Contributing Membership
                                                                                              2006               2005
   Membership at 1st January                                                            1,144,493          1,068,546
   New Members                                                                              90,906             96,414
                                                                                         ------------       ------------
                                                                                        1,235,399          1,164,960
   Withdrawals                                                                            (23,779)           (20,467)
                                                                                        -------------      -------------                                                  30
   Membership at 31st December                                                          1,211,620          1,144,493
                                                                                        =======            =======

   Active members of the Scheme (ie members who have made at least one contribution within the last twelve
   months) was 854,761.
                                            DIRECTOR-GENERAL’S REPORT

                                                                                   Membership

                                                                                                                                                         2006
REPORT AND FINANCIAL                                                               The contributing membership grew from 1,144,493 to


   STATEMENTS-2006                                                                                                                                      ANNUAL
                                                                                   1,211,620. The year also recorded 90,906 new members


                                                                                                                                                        REPORT
                                                                                   and 23,779 withdrawals.




                                                                                   Contributions Received

                                                                                   The total contributions collected in 2006 was ¢2,868
                                                                                   billion representing an increase of 50.47% over the




                                                                                                                                               SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                   amount of ¢1,906 billion in 2005.      The increase in
                                                                                   contributions was due principally to the increase in
                                                                                   salaries and receipts of some outstanding arrears from
                                                                                   the previous year. The total contributions received was
                                                                                   made up of ¢1,434.83 billion (or 50.03%) from the
                                                                                   Private Establishments, ¢1,214.34 billion (or 42.34%)
                                            MR. KWASI OSEI                         from   the    Controller   and   Accountant     General’s
                                                                                   Department and ¢218.74 billion (or 7.63%) from
                       The year 2006 was another exciting year in the annals of    Subvented Establishments.        In 2006, the average
                       the Trust.   The Trust recorded phenomenal strides in       monthly contributions received was ¢241.50 billion.
                       critical areas such as investment and contributions
                       collection and a steady improvements in other               The average compliance in respect of membership
                       operational areas.                                          contribution to the Social Security Fund was 77.52%.




                       Table 1: Contribution Received For The period 2002 - 2006


                          Year                        Contributions                Increase In Amount
                                                      (¢’b)                        of contributions (¢’b)               %Increase


                          2002                           1,002                             274                             37.64


                          2003                           1,340                             338                             33.73


                          2004                           1,633                             293                             21.87


                          2005                           1,906                             273                             16.72                                                              10

                          2006                           2,868                             962                             50.47
                                                  DIRECTOR-GENERAL’S REPORT




2006
ANNUAL
REPORT
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                  Salaries on which Contributions were paid

                                                  The average monthly salary of contributors as at December 2006 was ¢2,052,876.77.           Employees of Private
                                                  Establishments registered the highest average monthly salary of ¢2,286,395.75 followed by Subvented Establishments
                                                  of ¢1,902,145.23.


                                                  Table 2: Minimum Wage, Minimum Salary And Average Contribution


                                                     Year                       National                        Minimum Salary                 Average monthly
                                                                                Minimum wage                    of Contributors                Contribution Per
                                                                                (monthly)*                      (Monthly)                      Contributor


                                                     2002                       193,050                         11,000                          83,879
                                                     2003                       248,400                         20,000                         114,172
                                                     2004                       302,400                         20,000                         131,304
                                                     2005                       364,500                         34,400                         175,140
                                                     2006                       432,000                         40,000                         359,253

                                                  * Minimum wage for 27 working days.



                                                  Establishments Covered (Private & Subvented)

                                                  At the end of 2006, a total number of 25,132 establishments were covered under the scheme of which 25,017 were
                                                  Private Establishments and 115 subvented establishments. This showed a 8.64% increase over the 2005 figure of

  11                                              23,134 for establishments covered under the scheme, 23,026 for private establishments and 108 for subvented
                                                  establishments. The Accountant- General’s Department was the single largest payer.


                                                  Accra Area accounted for 34.10% of the number of Private establishments. It was followed by Tema and Kumasi with
                                                  24.11% and 14.55% respectively.
                                                                                  OUTLOOK FOR 2007                                                                            DIRECTOR-GENERAL’S REPORT


                                                  We expect new listings of both stocks and bonds on the Ghana Stock Exchange in the year 2007. This coupled with             Table 3: Private Establishments from whom Contributions were Received
                                                  the continued downward trend in interest rates is expected to increase investor confidence in the stock market in




2006                                                                                                                                                                                                                                                                                                      2006
                                                  2007. However, the load management exercise, which commenced in August 2006, if not checked, may adversely                     Area                          Total Establishments         Political Jurisdiction
                                                  affect the performance of Companies in the country. We therefore expect a steady but slow rise in the performance
                                                  of the Ghana Stock Market. We intend to take advantage of available opportunities on the local and regional markets            Accra                              8,530                   Greater Accra Region & Part of Central Region

ANNUAL                                                                                                                                                                                                                                                                                                   ANNUAL
                                                  particularly in the emerging sovereign bond instruments and special purpose regional infrastructural investment


REPORT                                                                                                                                                                                                                                                                                                   REPORT
                                                  funds.                                                                                                                         Tema                               6,032                   Parts of Greater Accra and Volta Region

                                                                                                                                                                                 Kumasi                             3,639                   Ashanti Region
                                                  In line with the policy of triennial revaluation of our real estate investments the Trust will soon embark on revaluation
                                                  of these assets. The exercise would reflect the current market values of these assets.                                         Koforidua                          2,242                   Eastern and Part of Volta Region

                                                                                                                                                                                 Takoradi                           1,787                   Parts of Western & Central Regions
                                                  We are also constantly reviewing the asset allocation policy to ensure the portfolio achieves its target returns without
                                                  compromising on safety, liquidity and social responsibility.
                                                                                                                                                                                 Tamale                             1,506                   Northern, Upper East & Upper West Regions
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                                 Sunyani                            1,281                   Brong Ahafo Region

                                                                                                                                                                                 Total                             25,017




                                                                                                                                                                              Table 4: Establishments Covered by Type ( 2002 – 2006)


                                                                                                                                                                                 Year                Private                    Subvented                 Total                  % Change


                                                                                                                                                                                 2002                17,370                           99                  17,469                  13.14


                                                                                                                                                                                 2003                18,540                           98                  18,638                   6.69


                                                                                                                                                                                 2004                20,987                           103                 21,090                  13.16


                                                                                                                                                                                 2005                23,026                           108                 23,134                   9.69


                                                                                                                                                                                 2006                25,017                           115                 25,132                   8.64




                                                                                                                                                                              Economic Activities of Covered Private Establishments

                                                                                                                                                                              The economic activity with the highest number of establishments and contributors was the services sector which
                                                                                                                                                                              accounted for 56.22% and 70.56% of the total number of establishments and contributors respectively. The sector
                                                                                                                                                                              continued to record steady increase in 2006 and accounted for 53.6% of establishments and 69.5% of contributors
                                                                                                                                                                              in 2005.



  27                                                                                                                                                                                                                                                                                                                                           12
                                                  DIRECTOR-GENERAL’S REPORT                                                                                       DIRECTOR-GENERAL’S REPORT


                                                  Table 5: The table below shows the number of active contributors and private establishments by sector.




2006                                                                                                                                                                                                                                                                                         2006
                                                     Economic Activity                      Establishment                           Contributors
                                                                                            No.                     %               No.                     %



ANNUAL                                                                                                                                                                                                                                                                                      ANNUAL
                                                     Agriculture                                  535             2.14               23,751                3.03


REPORT                                               Commerce                                   3,946            15.77               62,032                7.91
                                                                                                                                                                                                                                                                                            REPORT
                                                     Construction                               4,290            17.15               36,601                4.67

                                                     Domestic Assistants                           38             0.15                    383              0.05

                                                     Heavy Manufacturing Industry                 238             0.95               18,156                2.31

                                                     Light Manufacturing Industry               1,336             5.34               51,653                6.59
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                     Mining                                       130             0.52               18,575                2.37

                                                     Power                                        104             0.42                8,301                1.06

                                                     Services                                 14,065             56.22              553,377            70.56

                                                     Transport                                    335             1.34               11,465                1.46

                                                     Total                                    25,017             100.0              784,294           100.00
                                                                                                                                                                                          GROWTH OF THE FUND
                                                                                                                                                                  The total investment portfolio of SSNIT as at December 2006 grew by about 28% from ¢9,327.5 billion to ¢11,952
                                                                                                                                                                  billion in 2006.




  13                                                                                                                                                                                                                                                                                                                              26
                                                  DIRECTOR-GENERAL’S REPORT                                                                                                 DIRECTOR-GENERAL’S REPORT



                                                                                                                                                                                                                    INDEBTEDNESS

2006                                                                       INVESTMENT INCOME TO GENERAL AND                                                                 The total indebtedness of establishments to SSNIT at the end of 2006 was ¢430.32 billion, an increase of 30.74%
                                                                                                                                                                                                                                                                                                                   2006
ANNUAL                                                                                                                                                                                                                                                                                                            ANNUAL
                                                                                                                                                                            over the ¢329.14 billion in 2005. Of this amount, the Controller and Accountant General’s Department owed
                                                                         ADMINISTRATIVE EXPENSES COVERAGE RATIO

REPORT                                                                                                                                                                                                                                                                                                            REPORT
                                                                                                                                                                            ¢122.86 billion (or 28.55%), Private Establishments owed ¢291.29 billion or (67.69%) and Subvented Establishments
                                                                                                                                                                            owed ¢16.17 billion (or 3.76%).
                                                  Table: 18

                                                                                                                                                                            This cumulative indebtedness to the scheme represents 3.64% of the net assets of ¢11.82 trillion.
                                                     Ratio                  Minimum          10-Year           5-Year           3-Year          Previous       Current

                                                                            Standard         Mean              Mean             Mean            Year           Year         Some measures have been put in place to recover the arrears due from the indebted institutions. These include:

                                                                                             1997-2006         2002-2006        2004-2006       2005           2006
                                                                                                                                                                               • Aggressive enforcement of Compliance activities
                                                     Investment
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                         SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                               • Publication of names of defaulting employers in the newspapers
                                                     Income/                                                                                                                   • Aggressive Prosecution of defaulting employers.
                                                     General &
                                                                                                                                                                            An amount of ¢61.31 billion was recovered through court action.
                                                     Administrative          1:1             3.3:1             3.4:1            2.9:1           0.9:1          3.1:1

                                                     Expenses

                                                     (Times)                                                                                                                TABLE 6: Indebtedness/Fund Analysis For the Period 2002 - 2006


                                                                                                                                                                               YEAR              PRIVATE            GOV’T &              TOTAL              FUND SIZE            INDEBTEDNESS
                                                  On the average, SSNIT’s Investment Income to General and Administrative Expenses has generally exceeded the                                    EST.               SUB -ORGS.           (¢ ‘b)             (¢ ‘b)              TO FUND (%)
                                                  minimum standard coverage ratio of 1:1. This is a positive development regarding the fund’s sustainability. On the                             (¢ ‘b)             (¢ ‘b)
                                                  basis of this, the corpus of the fund remained intact and investment income has added on to the corpus of the fund.
                                                                                                                                                                               2002                 65.8               134.7              200.5              3,701.60                  5.4
                                                                                                                                                                               2003                 91.5               103.9              195.4              6,215.02                  3.1
                                                                                                                                                                               2004               143.3                163.0              306.3              8,751.28                  3.5
                                                                        SSNIT LISTED EQUITY RETURNS VERSUS GHANA                                                               2005               216.0                113.2              329.1              9,292.03                  3.5
                                                                                 STOCK EXCHANGE RETURNS                                                                        2006              291.29              139.03              430.32             11,820.00                  3.6


                                                  SSNIT continued to be a major player on the Ghana Stock Exchange (GSE) during the year. The Trust held shares in
                                                  23 out of the 31 companies listed on the GSE at the close of 2006. The total market value of SSNIT-held listed equities
                                                  stood at ¢2,857.98 billion, constituting 2.54% of the GSE total market capitalization of ¢112,496.01 billion.                                    STATEMENTS OF ACCOUNT
                                                  The chart below shows that, with the exception of year 2006, SSNIT-held listed equities have outperformed the GSE
                                                  over the past five years. These comparisons represent share price movements only. Perhaps, we need to mention that,       The Trust embarked on an ambitious programme to distribute comprehensive Statements of Account directly to
                                                  in the main, it was our holdings in Ghana Commercial Bank Limited, SG-SSB Bank Limited and Produce Buying                 contributors at their work places. This was a bold step to help the Trust build a highly reliable data on all contributors
                                                  Company Limited that pulled our listed equity portfolio performance below that of the GSE in 2006. This                   and also update the contributors on the contribution history and where necessary make appropriate corrections prior
                                                  notwithstanding, we believe the said stocks still hold long-term value for SSNIT.                                         to retirement. It is expected that all contributors will personally go through their statements and make enquiries at

  25                                                                                                                                                                        SSNIT if need be. Our records indicate that approximately 70% of active contributors have personally received their                                                         14
                                                                                                                                                                            statements. With the updated records on Contributors, including their addresses, the Trust expects to be able to mail
                                                                                                                                                                            subsequent statements directly to contributors.
                                                  DIRECTOR-GENERAL’S REPORT                                                                                                   DIRECTOR-GENERAL’S REPORT



                                                                                                     BENEFITS

2006                                              For the year 2006, the Trust processed 18,510 applications for various benefits showing 10.18% increase over the                    SUMMARY MEAN PORTFOLIO RETURNS FOR SSNIT INVESTMENTS
                                                                                                                                                                                                                                                                                                                2006
ANNUAL                                                                                                                                                                                                                                                                                                         ANNUAL
                                                  2005 figure of 16,800 in 2005. The total value of benefits processed was ¢798.71 billion as compared to ¢630.24


REPORT                                                                                                                                                                                                                                                                                                         REPORT
                                                  in 2005 showing an increase of 26.73%.                                                                                      The ten, five and three-year geometric mean returns presented in the table below provide the long, medium and short
                                                                                                                                                                              term view of the investment portfolio performance.
                                                  Out of the total benefits paid in 2006, Old Age/Invalidity pension and survivors’ benefits accounted for ¢621.91
                                                  billion and ¢140.99 billion respectively. We also paid ¢35.81 billion for Old Age Lumpsum/Refund.                           Table: 16


                                                  The total benefits payments of ¢798.71 billion was 27.85% of total contribution collected for the year.                                                 10-Year            5-Year            3-Year           Previous           Current
                                                                                                                                                                                                          Mean               Mean             Mean              Year            Year
                                                  The low level of salaries continued to impact negatively on the level of benefits. It is hoped that before long the issue                               (1997-2006)        (2002-2006)       (2004-2006)      2005               2006
                                                  of incomes will be reviewed comprehensively to make pension more substantial particularly at the lower end of the
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                      SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                  range .
                                                                                                                                                                                 Nominal Return           24.7%              23.9%             17.9%            5.4%               15.7%
                                                  Lowest Pension                    -           ¢ 150,000.00
                                                                                                                                                                                 Avg. Inflation           19.5%              15.9%             12.9%            15.1%              11.0%
                                                  Highest Pension                   -           ¢ 76,843,629.26
                                                  Average Pension                   -           ¢ 1,075,200.37 (Awarded in 2006)                                                 Real Return              +4.3%              +6.9%             +4.4%            -8.4%              4.3%
                                                  Lowest Reported Salary            -           ¢40,000.00.
                                                  Highest Reported Salary           -           ¢187,550,000.00
                                                  Average Salary                    -           ¢ 2, 052,876.77                                                               Note:
                                                                                                                                                                              At 2% positive real return on the investment, the Scheme would be sustainable over a 50-year period (i.e. 2004-
                                                  Table 7: Value of Claims Paid (in ¢’B) by Type of Benefit (2002 – 2006)                                                     2054), if the number of contributors were to increase at a minimum of 3% per annum. – Source: 2004 SSNIT Pension
                                                                                                                                                                              Fund Actuarial Valuation
                                                     YEAR               OLD AGE/                OLD AGE/          SURVIVORS’           TOTAL           % INCREASE
                                                                        LUMPSUM                 INVALIDITY        BENEFIT
                                                                        REFUND                  PENSION                                                                       It is pertinent to note that, on the average, SSNIT’s Investment portfolio real returns have exceeded the actuarially
                                                                                                                                                                              determined benchmark real return over the long, medium and short term (see table above).

                                                     2002                   10.08                105.90             44.32              160.30               50.1
                                                     2003                   11.36                166.51             70.37              248.24               54.9
                                                     2004                   15.49                325.74            106.12              447.35               80.2
                                                     2005                   29.43                456.04            144.77              630.24               40.9
                                                                                                                                                                                                         FIVE-YEAR TREND IN PORTFOLIO RETURNS
                                                     2006                   35.81                621.91            140.99              798.71              26.73
                                                                                                                                                                              Table: 17

                                                  Table 8 : Benefits Paid

                                                                                                                                                                                                          Mean      (2002-2006)       2006          2005         2004         2003            2002
                                                     YEAR                               BENEFITS                        INCREASE IN                     % INCREASE
                                                                                        (¢’B)                           BENEFITS PAID                                            Nominal Return (%)               23.9             15.7           5.4          34.4         45.1             22.7
                                                                                                                               (¢’B)
                                                                                                                                                                                 Average Inflation (%)            15.9             11.0           15.1         12.7         26.7             14.8


  15                                                                                                                                                                                                                                                                                                                                                 24
                                                     2002                                160.30                              53.47                            50.1
                                                                                                                                                                                 Real Return (%)                  6.9              4.3            (8.4)        19.2         14.5             6.9
                                                     2003                                248.24                              87.94                            54.9
                                                     2004                                447.35                             199.11                            80.2
                                                     2005                                630.24                             182.89                            40.9
                                                     2006                                798.71                             168.47                           26.73
                                                  DIRECTOR-GENERAL’S REPORT


                                                  TABLE 14: SUMMARY OF SSNIT INVESTMENT PORTFOLIO PERFORMANCE (2006/2005)

                                                     INVESTMENT               2006                                            2005



2006                                                                                                                                                                                                                                                                                                      2006
                                                                              Proportion              Weighted                Proportion             Weighted
                                                                              (%)                     Average                 (%)                    Average


ANNUAL                                                                                                                                                                                                                                                                                                   ANNUAL
                                                                                                      Return (%)                                     Return (%)



REPORT                                               Listed Equity            23.9                    0.9                     22.2                   (5.6)
                                                                                                                                                                                                                                                                                                         REPORT
                                                     Unlisted Equity          6.0                     6.0                     7.8                    0.2

                                                     Fixed Income             59.9                    7.3                     58.0                   9.1

                                                     Real Estate              9.5                     1.5                     10.6                   1.9

                                                     Economically             0.7                     -                       1.4                    -
                                                     Targeted
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                     Investments

                                                     Total                    100.0                   15.7                    100.0                  5.4



                                                  TABLE 15: PORTFOLIO REAL RETURNS (2006/2005)


                                                     Return                           2006                       2005

                                                     Nominal                          15.7                         5.4

                                                     Average Inflation                11.0                       15.1

                                                     Real                              4.3                        -8.4
                                                                                                                                                                                                                        PENSIONERS

                                                  The total investment income realized in the Financial Year 2006 was ¢1,313.3 billion. This represented an increase          The total number of pensioners at the end of 2006 was 73,311 an increase of 6.36% of the 2005 figure of 68,925.
                                                  of 71.5% as compared to the 2005 investment income of ¢765.6 billion.
                                                                                                                                                                              Annual pensioners population has increased by an average of 9.63% for the past five years.
                                                  The nominal return on SSNIT’s investment portfolio increased from 5.4% in 2005 to 15.7% in 2006. After accounting
                                                  for inflation, the portfolio posted a real return of positive 4.3% (see Table ‘15’), showing a recovery from the negative   Table 9: Pensioners
                                                  8.4% real return made in 2005.

                                                                                                                                                                                 YEAR                         NUMBER                          ABSOLUTE                      % INCREASE
                                                  The significant increase in the nominal portfolio return from 5.4% in 2005 to 15.7% in 2006 was due mainly to
                                                                                                                                                                                                                                              INCREASE
                                                  extraordinary gains of ¢599.0 billion, arising from the revaluation and subsequent listing of Ecobank Transnational
                                                  Incorporated (ETI) shares on the Ghana Stock Exchange and partly to improved dividend and interest incomes
                                                  received from other investments.                                                                                               2002                          51,576                            5,083                          10.93

                                                                                                                                                                                 2003                          60,637                            8,951                          17.35
                                                  In line with SSNIT’s policy of triennial revaluation of its unlisted equities, independent professionals revalued 25 of
                                                  our unlisted equities. The exercise generated a contingent value of ¢1,196.6 billion, indicating a gain of ¢767.6              2004                          63,030                            2,503                           4.14
                                                  billion. In line with accounting standards, this gain was not included in arriving at the overall portfolio return for
                                                                                                                                                                                 2005                          68,925                            5,895                           9.35
                                                  2006. Had it been included, the portfolio nominal return would have been 38.5% and real return of 24.8%. The
  23                                              revaluation gains are indicative of appreciation in values of our unlisted equity holdings.                                    2006                          73,311                            4,386                           6.36                                                          16

                                                  In order to recognize such revaluation gains in the future, we would continue with efforts at encouraging SSNIT-held
                                                  unlisted equity companies to consider listing on the Ghana Stock Exchange.
                                                  DIRECTOR-GENERAL’S REPORT                                                                                            DIRECTOR-GENERAL’S REPORT


                                                                                                                                                                       The table below shows how SSNIT’s actual asset mix compared with its target asset mix for 2006 and 2005.
                                                  Area Distribution of Pensioners




2006                                                                                                                                                                                                                                                                                          2006
                                                  The Accra Area ranked the highest with 28.22% of the pensioners as at the end of 2006, followed by Koforidua with
                                                                                                                                                                                        SUMMARY ASSET MIX 2006/2005 (ACTUAL VRS TARGET)
                                                  20.06% and Kumasi with 17.47%. Sunyani Area had 4.63% of the pensioners, the lowest in 2006. The trend in 2005


ANNUAL                                                                                                                                                                                                                                                                                       ANNUAL
                                                  was similar except that the percentages were Accra 27.8%, Koforidua 20.1% and Kumasi 17.6%. Sunyani Area had
                                                                                                                                                                       Table 13
                                                  4.5%, still maintaining its position in 2005.

REPORT                                                                                                                                                                    ASSET               TARGET        RE-BAL.         AS AT 31/12/2006                AS AT 31/12/2005
                                                                                                                                                                                                                                                                                             REPORT
                                                  Interestingly, only 3.71% of all active pensioners on the payroll at the end of 2006 did not opt for 25% lump sum.      CLASS               OR            RANGE
                                                  For instance, 51.76% were on normal retirement (i.e. full pension) with 25% lump sum, 43.60% were on early                                  POLICY                        ACTUAL       VARIANCE           ACTUAL       VARIANCE
                                                  retirement (i.e. reduced pension) with 25% lump sum, whilst 0.93% were on invalidity pension with 25% lump sum.                             MIX                           ASSET                           ASSET
                                                                                                                                                                                                                            MIX                             MIX

                                                  Old Age Pension beneficiaries continued to dominate the pensioners population by 98.96%. Invalidity Pensioners
                                                  constitute 1.04%.                                                                                                       Listed Equity       25.0%         +/-10%          23.9%           1.1%            22.2%           2.8%
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                    SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                          Unlisted Equity      4.0%          +/-3%           5.9%          -1.9%             7.8%          -3.8%
                                                  Table 10a : Distribution Of Pensions Amounts As At Dec 2006

                                                                                                                                                                          Fixed Income        51.0%          +/-4%          59.9%          -8.9%            58.0%          -7.0%
                                                                                                           %                                          %
                                                     PENSION (¢’)                         TOTAL         TOTAL         CUMMULATIVE            CUMMULATIVE
                                                                                                                                                                          Real Estate         15.0%          +/-7%           9.5%           5.5%            10.6%           4.4%

                                                       150,000                               141         0.19               141                     0.19
                                                                                                                                                                          ETI                  5.0%          +-/0%           0.7%           4.3%             1.4%           3.6%

                                                       150,001     -   180,000               401         0.55               542                     0.55
                                                                                                                                                                          Total              100.0%                       100.0%                           100.0%
                                                       180,001     -   200,000               218         0.30               760                     0.30

                                                       200,001     -   300,000            25,742        35.11            26,502                    35.11

                                                       300,001     -   400,000            18,575        25.34            45,077                    25.34                                  CHART OF SUMMARY ASSET ALLOCATION 2006/2005
                                                                                                                                                                                                      (ACTUAL VRS TARGET)
                                                       400,001     -   500,000             7,814        10.66            52,891                    10.66

                                                       500,001     -   700,000             8,069        11.01            60,960                    11.01

                                                       700,001     -   900,000             4,082         5.57            65,042                     5.57

                                                       900,001     - 2,000,000             6,425         8.76            71,467                     8.76

                                                     2,000,001     - 4,000,000              1306         1.78            72,773                     1.78

                                                     Above 4,000,000                         538         0.73            73,311                     0.73

                                                     TOTAL                                73,311        100%                                      100%



  17                                                                                                                                                                                                                                                                                                                               22
                                                                                                                                                                            DIRECTOR-GENERAL’S REPORT


                                                                                                                                                                            Table 10b




2006                                                                                                                                                                                                                                                                                                           2006
                                                                                                                                                                                        AREA DISTRIBUTION OF PENSIONERS AS AT THE END OF 2006

                                                                                                                                                                               Area              Full           Full Pens.   Reduced         Reduced    Invalidity    Invalidity   Total     % of

ANNUAL                                                                                                                                                                                           pension        Plus 25%     Pension         Plus 25%   Pension       Plus 25%               total
                                                                                                                                                                                                                                                                                                              ANNUAL
REPORT                                                                                                                                                                                                                                                                                                        REPORT
                                                                                                                                                                                                                LS                       LS                           LS


                                                                                                                                                                               Accra                521         11,328         527            8,063        25              228     20,692    28.22

                                                                                                                                                                               Tema                     92           2,658      74            2,468          4               65      5,361    7.31

                                                                                                                                                                               Kumasi                   88           6,594     106            5,920        16                81    12,805    17.47

                                                                                                                                                                               Sunyani                  54           1,719      94            1,491          6               27      3,391    4.63
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                                     SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                               Takoradi             182              5,124     236            4,895          8             104     10,549    14.39

                                                                                                                                                                               Koforidua            185              7,548     292            6,570          9             105     14,709    20.06

                                                                                                                                                                               Tamale                   74           2,977     110            2,557        15                71      5,804    7.92

                                                                                                                                                                               TOTAL             1,196          37,948       1,439           31,964        83              681     73,311    100.0

                                                                                                                                                                               % OF TOTAL         1.63               51.76    1.96            43.60      0.11              0.93    100.00

                                                                                                                                                                            The ratio of contributors to pensioners was 11:1 in 2006 as against the ratio of 13:1 in 2005.



                                                                                            INVESTMENTS                                                                     Table 11: Maximum and Minimum New Pension Awards


                                                                                                                                                                               YEAR                     HIGHEST                 GROWTH                     MINIMUM                 GROWTH
                                                                                                                                                                                                        PENSIONS                RATE                       PENSION                 RATE
                                                  Investment is a critical function in the management of the Social Security Scheme. As a partially funded scheme with
                                                                                                                                                                                                        (¢‘M)                   (%)                        (¢)                     (%)
                                                  contributors directly responsible for approximately one-third of the total cost of their benefits, we are challenged to
                                                  maximize the returns on our investments to enable us meet payment of benefits as they become due.
                                                                                                                                                                               2002                          10.88                     4.2                   50,000                  233.3

                                                  The Trust Investment Policy objectives include the following:                                                                2003                          21.88                   101.1                   90,000                   80.0

                                                                                                                                                                               2004                          34.59                    58.1                 100,000                    11.1
                                                     •    To implement Optimal Asset Allocation Policy.
                                                     •    To maintain a long-term Optimum Fund Ratio.                                                                          2005                          66.80                    93.1                 125,000                    25.0
                                                     •    To protect the corpus of the assets in the scheme and the value of those assets.
                                                     •    To achieve a real return on investment of at least +2.0% per annum.                                                  2006                          51.11               (23.49)                   150,000                    20.0
                                                     •    To endeavour to attract, train and retain competent investments talents.


  21                                              In achieving the investment objectives, SSNIT is guided by the following basic principles that govern the investment
                                                                                                                                                                                                                                                                                                                                                    18
                                                  of social security funds: safety, yield, liquidity, diversification, social and economic utility.


                                                  The Trust has implemented an asset allocation policy designed to achieve an actuarially determined real return on
                                                  investment of at least +2.5% for the year 2006.
                                                                                                                                                                   DIRECTOR-GENERAL’S REPORT


                                                                                                                                                                   Table 12: Loan Repayment Performance As At 31st December, 2006




2006                                                                                                                                                                                                                                                                                               2006
                                                                                                                                                                      YEAR                AMOUNT          INTEREST      TOTAL      RECOVERIES       OUTSTANDING          %
                                                                                                                                                                      2006                DISBURSED       ACCRUED       (¢‘B)                                            PERFOR
                                                                                                                                                                                          (¢‘B)           (¢‘B)                                                          MANCE

ANNUAL                                                                                                                                                                                                                                                                                            ANNUAL
REPORT                                                                                                                                                                                                                                                                                            REPORT
                                                                                                                                                                      Continuing
                                                                                                                                                                      Students               564.8           233.2       798.0           0.0              798.0               0.0


                                                                                                                                                                      Students
                                                                                                                                                                      Graduated              329.5           364.3       693.8         257.3              436.5              37.1


                                                                                                                                                                      SUBTOTAL               894.3           597.5     1,491.8         257.3            1,234.5              37.7


                                                                                                                                                                      Government                             527.5       527.5
   SOCIAL SECURITY AND NATIONAL INSURANCE TRUST




                                                                                                                                                                                                                                                                                         SOCIAL SECURITY AND NATIONAL INSURANCE TRUST
                                                                                                                                                                      Direct                                                             3.9                                  0.7


                                                                                                                                                                      Sub-Total                              527.5       527.5           3.9              523.6               0.7


                                                                                                                                                                      Grand Total            894.3         1,125.0     2,019.3         261.2            1,758.1              12.9




                                                                                                                                                                                              THE INFORMAL SECTOR

                                                                                                                                                                   A pilot programme to introduce a retirement scheme for the informal sector was in its second year of operation. The
                                                                                                                                                                   Informal Sector Scheme was developed based on extensive research to cater for the peculiar needs of workers
                                                                                                                                                                   operating in the informal sector of the economy.


                                                                                      STUDENT LOAN                                                                 Since 2005, the Trust has piloted the scheme in Accra, Koforidua, Takoradi and Kumasi. The scheme is due for a
                                                                                                                                                                   comprehensive review in 2007.


                                                  As at December, 2006 the Trust had recovered ¢ 261.2 billion of the amount ¢1,494.0 billion due from Students’   The Informal Sector Scheme is a voluntary money purchase scheme based on the individual equivalence principle
                                                  loan beneficiaries.   ¢257.3 billion was recovered from Students and ¢3.9 billion was recovered direct from      which means that each member of the scheme is entitled to benefits based exclusively on the accumulated savings
                                                  Government.                                                                                                      in an individual account plus any interest accruing thereon.


                                                                                                                                                                   A member has two accounts namely: Occupational Scheme Account and Retirement Account. Whilst a member may
                                                                                                                                                                   withdraw part of the accumulated savings in his/her Occupational Account after five months of membership, the
                                                                                                                                                                   amount accruing in the Retirement Account cannot be withdrawn until specific contingencies occur.


  19                                                                                                                                                               From the commencement of the pilot programme in June 2005 the informal sector scheme              recorded a total                                                   20
                                                                                                                                                                   membership of 9,399 as at December 2006 . Indications are that the number will rise sharply in the ensuing years.
                                                                                                                                                                   Within the same period the Trust mobilized ¢5.2 billion.

				
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