The Social Security and National Insurance Trust (SSNIT) in Ghana has announced a significant increase of fifteen per cent in pension benefits for pensioners enrolled in the scheme. This adjustment reflects the minimum monthly pension for existing pensioners, which has been raised to GH¢409.10 in 2024 from GH¢300.00 in 2023.
Dr. John Ofori-Tenkorang, the Director-General of SSNIT, revealed this development during a press conference held in Accra. The 2024 pension indexation rate, as announced by Dr. Ofori-Tenkorang, was executed in collaboration with the National Pensions Regulatory Authority (NPRA) in compliance with Section 80 of the National Pensions Act, 2008 (Act 766).
The purpose of this pension increment, explained Dr. Ofori-Tenkorang, is to use the “indexation of pension” to maintain the purchasing power of pensioners and ensure the sustainability of the scheme. Approximately 243,575 members stand to benefit from this increase, resulting in an additional pension expenditure of GH¢ 697.64 million.
Dr. Ofori-Tenkorang elaborated that the total benefit expenditure is projected to rise from GH¢ 5,445.91 million in 2023 to GH¢ 7,023.43 million in 2024. This substantial financial commitment underscores the commitment to support retirees and honor their contributions.
The implementation of the new increment involves a fixed 10 per cent increase plus a flat amount (five per cent redistributed) for all pensioners on the SSNIT Pension Payroll as of 31st December 2023, resulting in an additional GH¢79.10 to their pension. This redistribution mechanism aims to cushion low-earning pensioners in line with the solidarity principle of social security.
It is important to note that SSNIT’s pension scheme, akin to other defined benefit schemes, mirrors the earned salaries on which contributions were made. Consequently, the effective increase in pensions will range from 10.05 per cent for the highest-earning pensioner to 36.37 per cent for the lowest-earning pensioner. This equitable approach ensures that those with limited means receive a proportionally higher increase.
Dr. Ofori-Tenkorang emphasized the importance of enrolling in the SSNIT pension scheme, especially for workers in the informal sector, to secure retirement income. He highlighted the unique feature of the SSNIT Pension scheme, wherein members receive pension payouts until their passing after retirement.
Furthermore, Dr. Ofori-Tenkorang disclosed that the total monthly benefit of GH¢480 million, involving 19,100 members, had been withheld since 2018 due to beneficiaries not validating their membership with the scheme. This underscores the crucial role of active participation and compliance in ensuring timely receipt of pension benefits.
Stephen Boakye, the General Secretary of the National Pensioners Association, praised SSNIT for the robust 15 per cent increase, exceeding the initial expectations of a ten per cent indexation rate. The positive reception of this development underscores the tangible impact it will have on pensioners’ livelihoods.
The move by SSNIT to elevate pension benefits stands as a testament to the commitment to uphold social security and honor the contributions of Ghanaian workers. It also sends a powerful signal of reassurance to current and future pensioners, affirming the stability and reliability of the pension scheme.
