Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security. Aside the mandatory Tier 1 & 2 schemes, it is important for you to take advantage of the tax relief under Tier 3. The Asantehene, Otumfuo Osei Tutu II, has commended the Board of Trustees and Management of Social Security and National Insurance Trust (SSNIT) for working tirelessly to improve the operations and image of the Trust. This is in a accordance to the means testing method of paying social benefits. The member must have contributed for 12 months within the last 36 months preceeding the incidence of the invalidity. This implies that, contributors get exactly what they put in. the steps to continue. You must have made a minimum contribution of 240 months in aggregate. The member who retires at age 60, which is the compulsory retirement age, and has contributed for not less than 180 months in aggregate, is entitled to a full pension. When a member retires voluntarily on attaining age 55 or more, but below 60 years and has contributed for not less than 180 months in aggregate, he is entitled to a reduced pension. Dr. Ofori-Tenkorang speaking. The minimum pension payment is based on fifty per cent (50%) of the average annual salary for the three best years of a members working life. 240 months guarantee you 50% and every additional month attracts an additional 0.125%. When a member retires voluntarily on attaining age 55 or more, but below 60 years and has contributed for not less than 180 months in aggregate, he is entitled to a reduced pension. You will be made to appear before a Medical Board for examination. You can earn a pension right between 50% and 80% depending on the number of months contributed at the time of retirement. The contribution amount due is 13.5% of the employee’s basic monthly salary. So, effectively employers will pay their … Inform the nearest SSNIT Branch Office at least three (3) clear months before your retirement. the 0.5%. SSNIT to pay GH¢3bn pension benefits in 2019. SSNIT increases pension benefits by 11% for 2020 SSNIT increases pension benefits by 11% and pays GHS300 as minimum pension benefit to new pensioners while old pensioners receive GH¢357.18 as minimum "SSNIT has seen somepositive changesduring the tenure of the current Board", he said. Submit your completed form to the SSNIT Branch Office as early as possible. A dependant(s) may call at SSNIT Branch Office to collect, complete and submit an Application Form to which he will attach the following, The Membership Certificate of the deceased if available, SSNIT will process the application and a lump sum payment will be made.. The 2020 indexation rate was determined using the percentage change in the annual average Consumer Price Index (CPI) for 2019, forecast of the 2020 National Annual Price Inflation, ability of the Fund to pay and the long-term sustainability of the Scheme among others. Complete the form and attach two of your recent passport-size photographs. If you have not made the minimum contribution period, you will receive a pension based on 50% of the average of your best three years salary. It has, therefore, called on the public to rest assured that the Trust will not do anything that will negatively affect contributors. For early retirement from 55 and below 60, the pension is computed as follows, Whether you qualify for a full/reduced pension, you could choose to collect, 25% of your 12 years pension as a lump sum. Ghana election 2020- Who wins and what awaits the next government? The employer pays 13% and the employee pays 0.5%. Are you a Contributor to the Social Security fund? Submit your completed forms and photographs to the SSNIT Branch Office as, After you have been certified invalid you will be entitled to a pension as follows. SSNIT Pension Scheme . The new indexation rate will increase SSNIT’s liability for 2020 by GH¢ 243 million. The benefit is paid in a lump sum to the nominated dependants of a member upon his/her death. You must have made a minimum contribution of 12 months within, You must have been declared permanently invalid and incapable, by a qualified and recognised medical officer and. Consumer inflation drops to 9.8% in November – What it means to your pocket, Meet the Chairperson of the Electoral Commission – Madam Jean Mensa, Fuel prices to rise by mid December, this is how much you’ll pay for fuel- IES. It is charged with the mandate of overseeing the administrative functions of Ghana’s National Pension Scheme. SSNIT has four main benefits under ACT 766, however, the majority of beneficiaries fall under what is known as the Superannuation/Old Age Pension; … In 2019, it has paid GH¢200 million in paying pension benefits to the over 200,000 pensioners per month. Their monthly pension benefits shall be paid by SSNIT. The Social Security and National Insurance Trust (SSNIT) has announced in a 11% increase in the monthly benefit of pensioners. Officials of SSNIT have, on many occasions, explained to contributors and the public that the SSNIT Pension Scheme is a contributory Scheme with a fixed rate of contributions and defined benefits. Where a member dies having satisfied the minimum contribution period of 240 months, in aggregate, a lump sum payment of the earned pension of the deceased member for a period of 12 years will be made at the present value using the prevailing Treasury Bill Rate. The Social Security and National Insurance Trust (SSNIT) has increased the benefits of pensioners by 11 per cent. Complete the forms and attach two (2) recent passport size photographs. This was contained in a press release earlier on in the year. New pensioners retiring from 1st January 2020 under the SSNIT Tier one arrangements will however receive GH¢300 as minimum pension. The issue of minimum pension comes as a boost to those who by virtue of low salaries paid low contributions and thus earn less than the GH¢300. This education article covers only the Superannuation Pension/ Old age Pension popularly knows as a retirement benefit. Ghana votes today: Allying with peace for stable business growth and development, Make better financial decisions in 2020; here is a guide, How you may spend on Food in January 2020. In a release that seems to suggest Mr Mahama is clueless about pension benefit payments, SSNIT gave an … You must be at least 60 years and You must have made a minimum contribution of 240 months in aggregate. He said, three factors are considered in the computation, which included the age at which one retires, the average of best three years’ basic salaries on which one contributed and the number of months of contributions. These are Superannuation Pension/ Old age Pension, Invalidity Pension, Survivor’s Lump sum, and Emigration benefit. The Chairman of the Board of Trustees of Social Security and National Insurance Trust (SSNIT), Dr. Kwame Addo-Kufuor has called on members of the National Association of Pensioners (NPA) to support the Trust’s effort in educating the public on the SSNIT Scheme. This benefit is paid to dependants of members under the following conditions, When the member, while a pensioner, dies before. The member who retires at age 60, which is the compulsory retirement age, and has contributed for not less than 180 months in aggregate, is entitled to a full pension. The same rate was applied for 2019, however the 2020 indexation of 11% is higher than the forecasted inflation rate of 8%. SSNIT pays only the monthly pension of the beneficiary and the Fund Managers who manage the Second Tier with the 5% contribution rates will pay the lump sum. The Third-Tier is a voluntary, fully-funded by members and a privately managed provident fund and personal pension scheme. Note that the employee gets a tax relief on the percentage he/she personally contributed — i.e. The Social Security and National Insurance Trust (SSNIT) paid close to GH¢ 2.5 billion in pension benefits in 2018. SSNIT. The report further noted that “the SSNIT Pension is low because SSNIT has misinterpreted the Pension Law, which has resulted in low payment of pensions, thus making the contributors worse off.” INSET: A cross section of Organized Labor THE SOCIAL Security and National Insurance Trust (SSNIT) has announced its The GHC 55,800 will be divided by your pension right credit which is currently 55.63% 5. To use the Portal ID for the first time, click on the SIGN Saves GH₵130m after payroll clean-up 11,000 non-existent pensioners deleted The Social Security and National Insurance Trust (SSNIT) has saved GH₵200million in legacy investment-related costs after undertaking value-for-money audits and ensuing renegotiations, Director-General of SSNIT, Dr. John Ofori-Tenkorang has said. When the three-tier pension scheme was introduced in 2010 part of the contribution to SSNIT was hived off and paid into privately managed second-tier pension schemes. The Act is for both the public and private sector workers. SSNIT increased the benefit in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766). Report to the nearest SSNIT Branch Off ice with the Medical report from a recognised Medical Practitioner certifying your incapacitation. you will then receive a residual pension. On receiving information of the death of a member, SSNIT will request the nominated dependant(s) to apply for the benefit. Social Security Number as username and the corresponding These are. Superannuation Pension/ Old age Pension. IN icon on the top right corner. re-enrolment process. He must have been certified by a Medical Board as being incapable of any normal gainful employment due to a permanent physical or mental disability. Where your incapacitation is confirmed by the Medical Board, you will obtain Social Security Application Forms from the Branch Office. You can also call the SSNIT Contact Centre for assistance. The Director- General of SSNIT stressed that the Trust is the only institution that guarantees Social Security benefits ranging from the Old age retirement pension, Old-Age Lump sum, Invalidity Pension and Survivor’s Benefits for a sign-on contribution amount of just 11% of a basic monthly salary. SSNIT pays only the monthly pension of the beneficiary and the Fund Managers who manage the Second Tier with the 5% contribution rates will pay the lump sum. The first of these is fairly straightforward: if you work for an employer for 30 years, then 30 is used as one of the factors in your benefit calculation. Answer the security question, Key in your current Share. SSNIT, in a statement on Wednesday, 27 November 2019 in response to a press conference addressed by The Forum for Public Sector Registered Pension Schemes (The FORUM) who accused the state pension management body of cheating its beneficiaries, said it will “accurately and promptly” pay all benefits due members effective 1 January 2020. You must be 55 and above but below 60 years of age. Where you have not made the minimum contribution period of 240 months, but have qualified in age, you will be entitled to a lump sum payment of your. The Pension Manager, Mr Joseph Poku, took participants through SSNIT benefits computation. This give pensioners a real increase of 3% on their benefits. The SSNIT Branch Office will then supply you with an Application Form for Payment of Pension for completion. If you so opt, however. The Social Security and National Insurance Trust (SSNIT) appears to have taken former President John Mahama on a tutorial over pension benefit payments. Free SHS programme, NABCO and COVID-19 relief packages – An insight into Akufo Addo’s re-election. Be alert to your Social Security Responsibilities for a better service from SSNIT. BENEFITS UNDER THE SSNIT SCHEME. The contributions for any given month are due no later than 14 days after the end of that month. The TUC explained that under the Provisional National Defense Council (PNDC) Law 247, retirees received lump-sum payment equal to 25 percent of their total pension benefit. If your answer to any of the questions above is NO, then kindly contact the nearest SSNIT Branch for advice and remedial action. This benefit is paid monthly to a retired member of the Scheme. SSNIT increases pension to cater for inflationary pressures in the benefit. This could happen when the member dies whilst in service or during retirement but not after age 75 years. With this redistribution, lowest earning pensioners currently earning GHS300.00 will have their pensions increased to GH¢357.18 (an increase of 19.06%). Report the death of a member to the nearest SSNIT Branch Office with any one of the following evidences of Death. If you are logging in as an Employer Representative, enter The SSNIT Pension Scheme is Ghana's foremost pension scheme and is a social insurance scheme providing income protection for workers in both government and private sectors as well as for those in the informal sector (who voluntarily choose to join). The decision, according to SSNIT was taken after considering the rate of increase of prices of goods and services, adjustment in public sector salaries, as well as available funds with the company. Per the current adjustments 70% of pensioners will receive 11% or more as effective increase in their pensions. This will be paid to you at the, present value based on the prevailing Treasury Bill Rate. Most defined benefit pension plans use a formula that calculates three factors: the number of years of service of the employee; the final average salary of the employee; and a benefit multiplier. Where a pensioner dies before attaining age 72, a lump sum payment based on the present value of his unexpired pension will be made to his beneficiaries. The overall indexation amount was redistributed at a Fixed Rate of 6.6% and a Flat Amount of GH¢ 37.38 for all Pensioners on the SSNIT Pension Payroll as at 31st December, 2019 (SSNIT Website). 98% of pensioners will receive an effective increase equal to or above the targeted inflation rate for 2020. Invalidity Pension. SSNIT provides 4 types of benefits to members or contributors. Story By Dave Alamisi On Dec 18, 2019. Survivor’s Lump sum. 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