Pensions Allowance Goes Up By 15%

Pensions Allowance Goes Up By 15%

In cooperation with the National Pensions Regulatory Authority (NPRA), the Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 15% starting in 2024.

As a result, retirees now receive a 15% higher monthly stipend.

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

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

Chief Actuary Joseph Poku stated during the introduction of the 2024 Pension Indexation Report that the Trust is concentrated on broadening and improving the scope of the fundamental national social security program in order to assist employees who would eventually retire.

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

“The indexation is a technique we use to adjust pensions payment to help maintain the purchasing power of pensioners”, Mr. Poku said.

Giving further information, he stated that beginning of December 31, 2023, the monthly pension of every retiree 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 said that as a result, the effective pension rise will vary from 10.05% for the pensioner with the greatest income to 36.37% for the pensioner with the lowest income.

“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”, an additional statement from SSNIT said.

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