SSNIT increases monthly pension payment by 15% in 2024

For the year 2024, the Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 15% after consulting with the National Pensions Regulatory Authority (NPRA).

As a result, pensioners’ monthly payments have increased by 15%.

This is compliant with National Pensions Act, 2008, Section 80 (Act 766).

SSNIT reports that in addition to a redistributed flat amount of ¢79.10, every pensioner on its pension payroll will receive a monthly pension increase of a Fixed Rate of 10%.

Chief Actuary Joseph Poku stated, “The Trust is focused on expanding and deepening coverage of the basic national social security scheme to benefit workers who will be retiring in the future,” during the launch of the 2024 Pension Indexation Report.

He claims that indexation is a mandated legal process that reviews benefits to support pensioners in leading respectable lives.

Mr. Poku stated, “We use the indexation technique to adjust pensions payments to help maintain the purchasing power of pensioners.”

Giving further information, he stated that as of December 31, 2023, the monthly pension of every pensioner on the SSNIT Pension Payroll will be increased by a fixed rate of 10% in addition to a redistributed flat amount of GH¢79.10.

“Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. The SSNIT Scheme, like any other defined benefit scheme, pays pensions which mirror the earned salaries on which contributions were paid”.

He pointed out that the effective increase in pensions would therefore range from 10.05% for the highest-earning pensioner to 36.37% for the lowest-earning pensioner.

“Accordingly, the highest-earning pensioner as of December 31, 2023 will receive ¢186,777.58 per month in 2024. The lowest-earning pensioner as of December 31, 2023 will have the monthly pension increased from ¢300 to ¢409.10 in 2024”, SSNIT added in their statement.

Source: Ghanatodayonline.com