SSNIT contributions: 50% of active contributors earn GHC1,100 or less
SSNIT says low pensions arise as a result of low basic salaries on which contributions were paid and has nothing to do with the Trust’s investment portfolio
The Social Security and National Insurance Trust (SSNIT) says it cannot be blamed for low pension payments in the country.
Speaking on the Asaase Breakfast Show on Wednesday (7 April 8, 2021), John Ofori-Tenkorang, director general of SSNIT said, “35% of all SSNIT contributors are contributing on salaries of GHC700 or less. 66% of all active SSNIT contributors are contributing on salaries of GHC1800 or less. 50% of all SSNIT contributors are contributing on salaries of GHC1,100 or less and only 5% of all SSNIT contributors are contributing on salaries of GHC5,000.”
Ofori-Tenkorang said, “…So this goes to show why people say their pensions are low…so the issue of low pension is not with SSNIT and it doesn’t even got to do with SSNIT investment portfolio because it’s legislated. Come rain or shine, COVID or no COVID, investment returns or not SSNIT will have to pay [pension claims].”
He added, “So the fundamental pillar of low or high pensions, is how much are you coming to us [SSNIT] to insure. The rest as to how much we’re going to give you on indexation or whether we can give you a little more juice when we do the annual indexation or not depends on how much we have in the liquidity.”
Ofori-Tenkorang said there are currently about 1.6 million active SSNIT contributors up from about 1.2 million active contributors in 2017.
Increase in 2021 pension pay
Meanwhile, SSNIT, per section 80 of the National Pensions Act 2008 (Act 766), said the indexed monthly pensions have been increased upwards by 10% for 2021.
SSNIT working in consultation with the National Pensions Regulatory Authority (NPRA) said all pensioners on the SSNIT pension payroll as of 31 December 2020 will have their monthly pension increased by a fixed rate of 9.34% representing the annual average price inflation, plus a redistributed flat amount of GHC6.47.
“Accordingly, pensioners receiving the minimum pension of GHC300.00 as of 31 December 2020 will have their monthly pensions increased to GHC334.49, representing an effective increase of 11.5%,” a statement issued by the SSNIT said.
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, adding “ the minimum pension for all new pensioners effective January 2021 will be GHC300.00.
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