Stephen Boakye, the General Secretary of the National Pensioners Association (NPA), has expressed his satisfaction with the pension payment increment, while noting that his outfit was taken aback upon hearing the announcement.

According to the General Secretary of the National Pensioners Association, the association was expecting less than the 10 percent increment pensioners received last year due to the current economic challenges. He thus, expressed his appreciation to the Social Security and National Insurance Trust (SSNIT) for the bold decision amidst the current economic difficulties the country finds itself in.

“We are very grateful to SSNIT. We were not expecting that we will get this percentage. To be frank, looking at COVID-19 and its related problems coupled with the current air that is blowing in the whole world economically, we were even thinking that we will get less than the 10% we had last year, but surprisingly, this is 25% which is about 150% of last year’s. We are very grateful.”
Stephen Boakye

Mr Boakye, moreover, noted that all legitimate pensioners on the SSNIT pension payroll as of the end of December 2022, will have their monthly pensions increased by a fixed rate of 19 per cent, plus a redistributed flat amount of GH¢73.58. He thus attributed the increment to the work of God. “God has listened to our prayers; we are very happy, and our people too will be happy,” he stated.

It can be recalled that the Social Security and National Insurance Trust (SSNIT) on Friday, January 15, 2023, announced a 25% increment in the monthly pension payments.

Indexation Rate to Cushion Low-Earning Pensioners

Mr. Joseph Poku, the Chief Actuary at SSNIT, explaining the mechanisms at a press briefing, said the redistribution was a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. He disclosed that the review was informed by wage inflation, the consumer price index for the year, liquidity, and long sustainability.

The Chief Actuary at SSNIT noted that the effective increase in pensions would therefore range from 19.05 per cent for the highest-earning pensioner to 43.53 per cent for the lowest-earning pensioner. “Accordingly, the highest-earning pensioner as of December 31, 2022, will receive GH¢169,725.89 per month in 2023,” he added.

Mr. Joseph Poku indicated they would be reaching out to employers because most of them have not been paying their employees’ pension deductions and this could affect them after retirement. “We call on all workers to take this exercise seriously and add up their pension contribution if the need is to be able to benefit soon,” he said.

The Chief Actuary at SSNIT disclosed that a total of GH¢5 billion will be distributed by the pension scheme this year to beneficiaries.