The Social Security and National Insurance Trust (SSNIT) has reviewed monthly pensions upwards by 10 per cent for 2022.
This move, according to the scheme, is to help boost the purchasing power of pensioners amidst soaring inflation levels and the high cost of living in the country.
This adjustment is as a result of a consultation between SSNIT and the National Pensions Regulatory Authority (NPRA) and in line with Section 80 of the National Pensions Act 2008 (Act 766) where they agreed to index monthly pensions upwards by 10% for the year 2022.
Section 80 of the Act states that “the Trust shall annually review the pension payment which shall be indexed to wage inflation rates of active contributors or another rate determined by the Trust in consultation with the Board of the Authority.”
According to the Trust, effective December 31, 2021, all pensioners on the SSNIT Pension Payroll in addition to the 10% fixed percent will also get a redistributed flat sum of GHS3.44.
Redistribution is a mechanism applied to the indexation rate to buffer Members with low pensions in conformity with the solidarity principle of social security.
Accordingly, the highest-earning pensioner as at 31st December 2021 will receive GHS142,564.97 and pensioners receiving the minimum pension of GHS300.00 as at 31st December, 2021 will have their monthly pensions increased to GHS332.48.
SSNIT explained that low pensions come about as a result of low basic salaries (that were declared to SSNIT) on which contributions were paid.
SSNIT Open to all sectors of the economy
The Director-General of SSNIT, Dr. John Ofori-Tenkorang, decried the misconception that SSNIT is primarily for government employees. Rather, he stated that SSNIT is for all workers who are willing to join and contribute a portion of their legally earned income to ensure their retirement security.
“SSNIT is not only for government workers. As self-employed, you can join SSNIT and also enjoy the benefits that government workers enjoy as SSNIT contributors. With SSNIT, you are not only saving towards retirement but also for contingencies; incapacity to work due to unforeseen situation.”
Dr. John Ofori-Tenkorang
A proportion of the Ghanaian population believes that SSNIT is for public sector workers alone, hence Dr. Ofori-Tenkorang’s advocacy to clarify the issue to ensure that all workers, especially the self-employed join the SSNIT Scheme.
Only 3% of workers in the informal sector are covered by any structured social security scheme, according to the Ministry of Employment and Labour Relations.
As a result, very few workers in the informal sector have joined the SSNIT Scheme or any other private scheme over the years, portraying a grim picture of their future, hence SSNIT’s move to woo the self-employed to join its Scheme.
Dr. Ofori-Tenkorang encouraged the informal sector players to join SSNIT telling them “Know that one day, you will become old. You cannot continue doing what you are doing today. You will need support. Will you be ready? Why don’t you join SSNIT and insure your income?
Old Age Pension, Invalidity Pension, Survivor’s Lump Sum Benefit, and Emigration Benefit are the four main benefits of the SSNIT Scheme, according to him, and the calculation of the SSNIT benefits is not complicated, as it only depends on the amount of money you contributed and the length of time you contribute.
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