Dr. John Ofori-Tenkorang
THE SOCIAL Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has adjusted upwards the monthly pension benefits of pensioners by 10 per cent for 2022.
The adjustment is in line with Section 80 of the National Pensions Act 2008 (Act 766) which mandates the Trust to regularly increase the benefits of pensioners so as to maintain their purchasing power.
The increment was announced Tuesday at a media briefing in Accra by Dr. John Ofori-Tenkorang, SSNIT’s Director General.
Thus, all pensioners on the SSNIT Pension Payroll, as at 31st December, 2021 will have their monthly pension increased by a fixed rate of 9.68% plus a redistributed flat amount of GH¢3.44, said Dr. Ofori-Tenkorang.
He explained that re-distribution is a mechanism applied to the indexation rate to cushion members on low pensions in conformity with the solidarity principle of social security.
Low pensions arise as a result of low basic salaries declared to SSNIT on which contributions are paid.
The effective increase in pensions would therefore range from 9.683% for the highest earning pension to 10.83% for the lowest pension earner.
This, in effect, would mean that the highest earning pensioner as at 31st December, 2021 will receive GH¢ 142,564.97 and pensioners receiving the minimum pension of GH¢300.00 as at 31st December, 2021 will have their monthly pensions increased to GH¢332.48.
The minimum pension for all new pensioners, effective January 2022, will be GH¢300.00. This means that pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum.
Mr. Ofori-Tenkorang disclosed that all eligible pensioners would be paid on the third Thursday of every month.
He said his outfit was committed to paying the pension benefits of all pensioners “accurately, correctly and promptly.”
He also disclosed that his outfit had paid about GH¢3.6 billion in various forms of SSNIT benefits as at December 2021. This meant that the Trust paid about GH¢300 million, equal to about $50 million per month.
SSNIT is a statutory public trust with the mandate of managing the Basic National Social Security Scheme to cater for the first tier of the contributory three-tier pension scheme, and to provide for related matters under the National Pensions Act 2008 (Act 766).
SSNIT is charged with the responsibility of replacing part of lost income to its contributors and their dependants due to old age, invalidity, emigration or death.
The pension a member enjoys under the First Tier Scheme is dependent on the basic salary (on which contributions were made) and the number of months one has contributed to the scheme.
BY Nii Adjei Mensahfio