Monthly pensions payment hiked by 15% for 2024
The Social Security and National Insurance Trust (SSNIT), in collaboration with the National Pensions Regulatory Authority (NPRA), has announced a significant 15% upward adjustment in monthly pensions for the year 2024.
The increment aligns with the stipulations outlined in Section 80 of the National Pensions Act, 2008 (Act 766), underscoring a concerted effort to enhance the welfare of pensioners.
The increment encompass a fixed rate increment of 10%, supplemented by a redistributed flat amount of GH¢79.10, aimed at ameliorating the financial standing of pensioners.
Joseph Poku, the Chief Actuary at SSNIT, elucidated the intricacies of the pension indexation during the launch of the 2024 Pension Indexation Report. He emphasized the salient role of indexation as a pivotal mechanism to preserve the purchasing power of pensioners, ensuring that their livelihood remains commensurate with prevailing economic conditions.
He delineated the redistributive strategy, elucidating its function in cushioning low-earning pensioners in alignment with the solidarity principle intrinsic to social security frameworks.
Impact on Pensioners
The ramifications of this increment manifest variably across pensioners, with the highest-earning beneficiaries witnessing a 10.05% increment, while their lowest-earning counterparts experience a substantial 36.37% increase.
The tangible implications translate into a monthly pension of ¢186,777.58 for the most affluent pensioner and an increase from ¢300 to ¢409.10 for the least affluent beneficiary.
Fiscal Implications and Expenditure Projections
From a fiscal perspective, the 15% indexation rate necessitates an additional pension expenditure amounting to GHS 697.64 million, culminating in a total outlay of GHS 5,387.72 million for pensioners as of December 31, 2023.
Furthermore, projections indicate a surge in the total benefit expenditure from GHS 5,445.91 million in 2023 to an anticipated GHS 7,023.43 million in 2024, encapsulating the escalating financial commitments associated with pension disbursements.
In summary, SSNIT’s proactive approach in augmenting monthly pensions by 15% for 2024 underscores a commitment to upholding the welfare of pensioners in conformity with legislative mandates. The delineation of redistributive strategies and fiscal implications elucidates a comprehensive framework aimed at fostering financial inclusivity and ameliorating the socio-economic conditions of retirees. As pensioners anticipate the forthcoming increments, the overarching objective remains anchored in ensuring dignified livelihoods and economic stability for this demographic cohort.
