Dr. John Ofori-Tenkorang
THE SOCIAL Security and National Insurance Trust (SSNIT) has explained that pensions are a direct reflection of the basic salaries on which contributions are paid.
According to the trust, the higher the salaries on which members contribute, the higher their pension.
This was revealed by the Director General of SSNIT, Dr. John Ofori-Tenkorang, at a forum organised by the leadership of the Trades Union Congress (TUC) in collaboration with SSNIT in Takoradi.
He said “Currently over 800,000 workers, representing 43 per cent of active SSNIT members have declared basic salaries of GH¢1,000 or less.”
“These workers pay a monthly contribution of GH¢110 or less to SSNIT. If these workers were to retire on these basic salaries, they would earn a monthly pension of GH¢600.00 or less,” he added.
He, therefore, encouraged workers to engage their employers to consider consolidating their salaries adding “This will guarantee workers a better pension when they retire.”
He also challenged the union’s executives to take full advantage of the Three-tier pension Scheme.
He explained that SSNIT manages only the first- tier of the Three-tier Scheme and pays monthly pensions.
However, the Tier 2 and Tier 3 schemes are managed by corporate trustees who pay members a one-time lump sum.
“Therefore, contributing to all three-tiers go a long way to enhance your pension at retirement.
“This is because it provides a very good tax advantage for everyone and enhances members’ benefits at retirement,” he stated.
He said currently, the SSNIT Pension Scheme has an active membership of over 1.7 million.
“The highest pension earner receives GH¢142,564.97 per month, while the lowest-earning pensioner gets GH¢300.00,” he disclosed.
“The trust will soon launch a SSNIT App and Mobile Money payment platform to enable members, especially the self-employed, easily transact business with the trust,” he mentioned.
The Deputy Secretary-General of the TUC, Joshua Ansah, commended management of SSNIT for improving transparency and entreated participants to take full advantage of the engagement in order to gain better understanding and clarity of the scheme.