SSNIT ups monthly pensions by 10 per cent

The Social Security and National Insurance Trust (SSNIT) has indexed monthly pensions upwards by 10 per cent for the year 2022.

This was done in consultation with the National Pensions Regulatory Authority and in line with Section 80 of the National Pensions Act 2008 (Act 766).

The factors that informed the 2022 Indexation Rate are the percentage change in the annual average Consumer Price Index (CPI) for 2021, the percentage change in average Wage of Active Contributors in 2021, long term sustainability of the Scheme and the Liquidity–ability of the Fund to pay.

Dr John Ofori-Tenkorang, the Director-General of SSNIT, who announced the Indexation of Pensions 2022, said all Pensioners on the SSNIT Pension Payroll as at December 31, 2021, would have their monthly pension increased by a fixed rate of 9.68 per cent plus a redistributed flat amount of GH¢3.44.

Indexation is a technique used to adjust pensions to maintain the purchasing power of pensioners, while redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in conformity with the solidarity principle of social security.

He said the low pensions arose because of low basic salaries (that were declared to SSNIT) on which contributions were paid.

The Director-General said the effective increase in pensions would, therefore, range from 9.683 per cent for the highest-earning pension to 10.83 per cent for the lowest pension earner.

Accordingly, the highest-earning pensioner as at December 31, 2021, would receive GH¢ 142,564.97 compared to GH¢ 129,979.51 in the previous year.

Meanwhile, pensioners receiving the minimum pension of GH¢300.00 as at December 31, 2021, would have their monthly pensions increased to GH¢332.48.

Dr Ofori-Tenkorang said the minimum pension for all new pensioners effective, January 2022, would be GH¢300.00, meaning pensioners whose computed monthly pensions fell below GH¢300.00 would be placed on this minimum.

Mr Joseph Poku, the Chief Actuary at SSNIT, said the lowest earning pensioners would get an indexation rate of 10.83 per cent, with all pensioners receiving an increase equal to or above the targeted inflation rate for 2022.

He said the projected expenditure on pension for 2022 was GH¢ 3.5 billion.

The Chief Actuary said Management of the Trust would continue to work hard to guarantee positive annual indexation for pensioners bearing in mind the long-term sustainability of the Scheme.

“The Trust remains committed to paying all legitimate benefits accurately and timeously,” he added.