The Social Security and National Insurance Trust (SSNIT), in accordance with Section 80 of the National Pensions Act 2008 (Act 766), on Thursday said the indexed monthly pensions have been increased upwards by 10 percent in 2021.
SSNIT working in consultation with the National Pensions Regulatory Authority (NPRA) said all Pensioners on the SSNIT Pension Payroll as of December 31st, 2020 will have their monthly pension increased by a Fixed Rate of 9.34 percent representing the annual average price inflation, plus a redistributed flat Amount of GH¢6.47.
“Accordingly, Pensioners receiving the minimum pension of GH¢300.00 as at December 31st, 2020 will have their monthly pensions increased to GH¢334.49, representing an effective increase of 11.5 percent,” a statement issued by the SSNIT Public Affairs Department and Copied to the Ghana News Agency on Thursday stated.
The statement said the redistribution was a mechanism applied to the indexation rate to cushion Members on low pensions in line with the solidarity principle of social security.
SSNIT explained that the low pensions arise as a result of low basic salaries on which contributions were paid; “the minimum pension for all new Pensioners effective January 2021 will be GH¢300.00.
“This means, pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum”.
The statement recounted that; SSNIT is a Statutory Public Trust with the mandate of administering the First Tier Basic National Social Security Pension Scheme 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 dependents 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. Pensioners will be paid on the third Thursday of each month.