Providing Social Protection in the form of Pension Funds to the informal sector in Ghana: A Case Study of SSNIT Informal Sector Fund

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Pension reform around the world in recent decades has focused mainly on the formal sector. Consequently, many of those working in the informal sector have been left out of structured pension arrangements, particularly in developing countries – a serious problem given this group are often due to low income earners, vulnerable to economic volatility and change. However, since the turn of the millennium, efforts in a range of countries have increasingly highlighted improving pension coverage for informal sector workers. There is therefore the need to undertake a detailed review of the SSNIT Informal Sector Fund pension scheme to identify the challenges that hinder its operations and also to evaluate negative perception of the public on the scheme.This study assesses the challenges of wide coverage of workers lack of awareness), unstable cash flows and distrust of the system which threaten the operational effectiveness, viability and suitability of the scheme. For the purpose of analysis of the analysis the researcher used a combination of data for which the main sources are from the survey which was conducted (questionnaires),SSNIT publications and literature review on the subject. These constituted the primary and secondary sources of data respectively. The analytical tools used by the researcher are Statistical package for Social Scientist, Microsoft Excel 2007 and Analytical Hierarchy Process model. It is therefore commended that effective and comprehensive educational and awareness raising programmes of SSNIT Informal Sector Fund pension scheme are instituted to increase its coverage. More flexible contribution and withdrawal terms for informal sector workers will also boost the rate of contributions and enrollment of new members on to the scheme.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,