SSNIT increase pensioner’s pay by 10% effective January 20
The Social Security and National Insurance Trust (SSNIT), has increased the monthly payment of pensioners by 10%.
The increment followed consultations with the National Pensions Regulatory Authority (NPRA) and is expected to take effect January 20, 2022.
This means that all pensioners on the SSNIT Pension Payroll as of 31st December, 2021 will enjoy the increment.
According to a press release issued by SSNIT, all pensioners “will have their monthly pension increased by a fixed rate of 9.68% plus a redistributed flat amount of ¢3.44.”
The highest earning pensioner as of 31st December, 2021 will receive a payment of ¢142,564.97 every month.
Pensioners receiving a minimum pension of ¢300 as of 31st December, 2021 will have their monthly pensions increased to ¢332.48.
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However, the minimum pension for all new pensioners, effective January 2022 will be ¢300.
Addressing the media, Director General of SSNIT, Dr. John Ofori-Tenkorang, said his outfit considered a number of factors including inflation before determining the new benefit.
“We looked at targeted inflation, that is, what the forecast of inflation in the year will be and what we are to pay the pensioners’. In general, if you look at the historic plot, we’ve tracked it very well. Sometimes we also look at wage inflation”.
“We use part of people’s premium that they are currently paid to also pay part of the pensions, in addition to using money from our investments, among others. So if you don’t have contributors salaries increasing at a rate that matches your indexation or you do not have the number of people that are joining the scheme increasing, you may end up in a situation where there’s a mismatch between the premiums collected and the payments you’re making,” he said.
SSNIT increases minimum pension payments by 10% in 2021
It is only a year ago that SSNIT increased minimum pension payments to pensioners to Ghs 300.00.
The increment in minimum pension payment reflected a 10 per cent increment in monthly pension payments by SSNIT.
SSNIT in a press release on Thursday, January 7, 2021, indicated that all pensioners on the SSNIT Pension Payroll as at December 31, 2020, will have their monthly pension increased by a Fixed Rate of 9.34 per cent.
The increment according to the release, “represents the annual average price inflation, plus a redistributed flat amount of Ghs 6.47.”
“Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security. Low pensions arise as a result of low basic salaries on which contributions were paid,” added SSNIT.
SSINT further stated the new Ghs 300 minimum pension which is in accordance with Section 80 of the National Pensions Act 2008 (Act 766), and set to take effect from January 2021 will paid to all pensioners.
This implies pensioners whose computed monthly pensions fall below Ghs 300 will be placed on this new minimum.
Also, Pensioners already receiving the minimum pension of Ghs 300 as of December 31, 2020, will have their monthly pensions increased to Ghs 334.49, representing an effective increase of 11.5 per cent.
