Austin Gamey, a labour consultant has intimated that current pension payouts are not enough to sustain many pensioners in a rebased economy.
These comments follow after the Social Security and National Insurance Trust (SSNIT) in consultation with the National Pensions Regulatory Authority (NPRA) revised the 2021 monthly pensions upward by 10 percent with immediate effect.
Formulas for calculating pensions often include the average salaries for periods of employment, usually at the end of the worker’s career, he opined, adding that for an average retiree who gets a current monthly minimum amount of GH¢ 300 as at 31st December 2020 which has been increased to GH¢334.49, this new pension payouts after the revision “can’t pay your rent, you can’t do anything in a rebased economy. Because, this class of people cannot build their own houses, and that is the bottom line”.
“We are talking about a nation that has a rebased economy. If you are talking about a rebased economy, the effects are quite huge and therefore SSNIT will have to up their game.
“If they are giving you 10% in a rebased economy, where are you, what can you buy and do with it?“.
There is a need to invest funds contributed to the Social Security and National Insurance Trust (SSNIT) in entities with good returns in order to attract good yields for subsequent payouts to beneficiaries, Austin Gamey remarked.
The Labour consultant further asserted that the pension funds must be smartly invested. “I’m speaking in the interest of us, the contributors of SSNIT. SSNIT cannot conjure money from anywhere, and so the monies should not be misused, should not be misapplied, should not be placed in portfolios that are not high yielding”.
SSNIT is charged with the responsibility of replacing part of lost income to its contributors and their dependents due to old age, invalidity, emigration or death and as such it behoves on the institution to consider ways of multiplying such monies through investments for the benefit of all as time value of money is of essence.
“And it’s up to the board people, who are also populated by the working people to ensure that they protect the interest of the contributors and not making it look as if SSNIT is part and parcel of the government, it’s not. So we really need to be very careful as a nation.”
Monthly Pensions Revised Upwards By 10%
The Social Security and National Insurance Trust (SSNIT) has intimated that pensioners on SSNIT payroll will have their monthly pension increased by a Fixed Rate of 9.34% representing the annual average price inflation. More so, such retirees are entitled to receive an additional redistributed flat amount of GH¢6.47.
The increment is in accordance with Section 80 of the National Pensions Act 2008 (Act 766) as indicated in a recent statement issued and signed by SSNIT.
Accordingly, pensioners on the current minimum monthly pension of GH¢300.00 will receive a new minimum monthly pension of GH¢334.49 from January 2021.
“This means, pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum”.
The pension scheme as administered by SSNIT has an active membership of over 1.6 million as at July 2020.