Government has reiterated its commitment to absorb shortfalls in lump-sum payments by the Social Security and National Trust Fund (SSNIT) to public workers due to retire this year.
The first badge of public workers set to retire under the new National Pensions Act, Act 766, are expected to receive lump-sum payments from corporate trustees and monthly payments from SSNIT.
Speaking at the 10th anniversary celebration of the National Pensions Regulatory Authority (NPRA), Deputy Minister for Employment and Labour Relations, William Owureko Aidoo, stated that government is committed to ensuring that the first badge of public workers are satisfied with their pension payments.
The 3 tier pension scheme comprise a compulsory 13.5 percent contribution of salary managed by SSNIT, 5 percent contribution managed by corporate trustees and the third tier, which is a voluntary scheme and includes all Provident Funds and all other pension funds outside Tiers I and II.
Meanwhile, private sector pension contributions according to the Central Bank has seen a decline from February to September this year.
According to Bank of Ghana, the reduction in private sector contributions to pensions is attributed to Covid-19 related job losses.
Number of workers in the priavate sector contributing to pensions decreased from over 800,000 to 650,000 with contributions also declining from Ghs 250 million in February to Ghs 180 million in September, 2020.
