The Social Security and National Insurance Trust (SSNIT) has announced that minimum pension for all pensioners in 2020 will be GH¢ 300 monthly.
As a result, pensioners on the SSNIT pension payroll as of 31st December 2019, receiving the minimum pension of GH¢ 300 will have their pension increased to GH¢ 357. 18 ( an increase of 19.06℅).
Chief Actuary of SSNIT, Stephen Yeboah, who made this known at a press said the 2020 indexation rate was determined using the percentage change in the annual average Consumer Price index for 2019, forecast of the National Annual Price Inflation, ability of the Fund to pay and the long term sustainability of the Scheme, among others.
The 11℅ rate is higher than the forecasted inflation rate of 8℅ for 2020.
Workers who turn 60 years from January 1, 2020, will no longer receive lump-sum payments from the Social Security and National Insurance Trust (SSNIT) under PNDC Law 247.
Such contributors will now have to turn to the fund managers of their second-tier contribution for lump sums.
However, the Director-General of SSNIT, Dr. John Ofori-Tenkorang, who disclosed this at a breakfast meeting with some employers in Accra yesterday, said in addition to the lump sum from the second tier, SSNIT would pay a lump sum known as “past credit” accruing from earlier contributions by such workers before the coming into force of the National Pensions Act, 2008 (Act 766), which introduced the tier two.
Even though the law was passed in 2008, it was operationalized in 2010.
Source: Kofi Atakora
