SSNIT increases pension

The Social Security and National Insurance Trust (SSNIT) on Monday announced a 16.2 per cent increase in pensions across board and an additional flat amount of GH 4.93 cedis for every SSNIT pensioner.

A statement signed by Mr Kwaku Osei Bimpong, Head of Public Relations, SSNIT in Accra said the increases take effect from January 2009 and would apply to only pensioners on the pension payroll as at December 31, 2008.

The statement said the overall increase in pensions was based on the average increase in the salaries of active contributors to the SSNIT scheme in 2008.

“The new minimum pension for 2009 for new pensioners will be GH¢ 26.00, an increase of 17.6 per cent. The current minimum pension for new pensioners is GH¢ 22.00,” the statement said.

According to the statement, the review in pensions was in line with Social Security Law 1991, PNDC Law 247, which provided for a review of pensions annually.

“The critical factor which affects the level of pensions for newly retired contributors is the salary on which a member contributes to the social security scheme.

The other factors are the number of months of contribution to the scheme by the member and the age at which a member retires for the old age pension,” it said.

SSNIT has reviewed pensions annually since 1992 based on the average increase in salaries of contributions during the previous years.

Source: GNA