SSNIT benefits: Important notice to SSNIT contributors


SSNIT benefits: Important notice to SSNIT contributors

An important breakdown of the Social Security and National Insurance Trust (SSNIT) benefits to the contributors has been covered here for their perusal.

Social Security and National Insurance Trust (SSNIT) is a social insurance scheme where members contribute during their working life and receive benefits when they no longer earn regular income.


A breakdown of SSNIT benefits according to laid down norms has been covered in this article for all types of contributors.

READ MORE: SSNIT: What you must do before you retire

Pensions law, Act 766

The current Pensions law, Act 766 which was passed in 2008 and became operational on 1st January, 2010, introduced a Three-Tier Pension Scheme.

It includes:

(a) Tier 1: A Defined Benefit Scheme solely managed by SSNIT for the payment of monthly pension to qualified persons. Tier 1 is managed by SSNIT.

(b) Tier 2: A Defined Contributory Scheme Managed by Corporate Trustees responsible for the payment of lump sum. Eg. Enterprise Trustees, Glico, Axis Pension etc.

NOTE: SSNIT does not handle Tier 2, but Tier 1.

(c) Tier 3: Voluntary Scheme managed by Private Fund Managers. This type is optional, unlike the previous tiers which are compulsory.

Composition of funds under Act 766

1. Total Social Security Contribution Rate is 18.5% of your basic pay (excluding allowances)

2. The employer provides 13%

3. The employer deducts 5.5% from workers basic pay making 18.5%.

Distribution of funds under Act 766

1. The employer pays 5% from the total 18.5% to a Tier 2 fund manager which the company (eg. Peace FM or GNAT) has selected to manage their funds.

2. The remaining 13.5% goes to SSNIT.

3. SSNIT remits 2.5% to National Health Insurance Scheme (NHIS), leaving 11% to manage and pay monthly pension.

Past Credit

1. The Contribution Rate under the old pension law, that is PNDCL 247, was 17.5%

2. With the introduction of Act 766 in 2010, the rate that goes to SSNIT was reduced to 13.5% even be fore the Trust remits 2.5%

to NHIS.

3. So, if you deduct 17.5% from 13.5%, you will get 4%.

4. The Past Credit is the accumulation of the residual 4% right from the time the contributor joined the SSNIT Scheme and contributions were paid on their behalf up to 31st December, 2009. Kindly note that 1st January, 2010, the current pension law began operational.

National Pensions Regulatory Authority (NPRA) from 2010 to 2016 

1. When Act 766 started in 2010, the Tier 2 Fund Managers were not properly set up.

2. So, SSNIT was collecting the money, on behalf of the sector regulator, the National Pensions Regulatory Authority (NPRA).

3. Those contributions were put into the Temporary Pension Fund Account (TPFA) at the Bank of Ghana (BoG) untill 2016 when the Tier 2 Fund Managers were properly organised and well equipped to mange those funds.

3. NPRA in collaboration with employers distributed those funds to the trustees or fund managers the employers themselves have chosen to manage their Tier 2 funds. SSNIT didn’t have a hand in the distribution.

What is Tier 2?

Tier 2 is a defined Contributory Scheme Managed by Corporate Trustees responsible for the payment of lump sum. Eg. Enterprise Trustees, Glico, Axis Pension etc.

Is Tier 2 compulsory?

Yes. Tier 2 is compulsory for all workers in the formal sector but it is optional for self-employed people.

What is Tier 1?

Tier 1 is a defined Benefit Scheme solely managed by SSNIT for the payment of monthly pension to qualified persons. Tier 1 is managed by SSNIT.

Is Tier 1 mandatory?

Tier 1 is a mandatory basic contributory Social Security Scheme managed by SSNIT.

READ ALSO: SSNIT Bio-information, its usefulness, requirements and how to apply

Notice to all SSNIT contributors

  1. A retiree contributor will benefit from Tier 2 as his/her Lump Sum from trustees or fund managers.
  2. Contributors who were appointed in 2016 and beyond are not entitled to any Past Credit when they retire.
  3. Contributors “who have been born and reborn” (have different Dates of Birth at their workplace and SSNIT) whether deliberately or unintentionally, have created serious problems for themselves.
  4. Those who have the same dates as mentioned above, but have different dates of birth on their National ID (Ghana) Card, have problems similar to those mentioned above. This is because with any different Date of Birth, the system will recognize it as a different person; and as such, your accumulated contribution will be suspended in that account searching for its rightful owner who has metamorphosized with date of birth.
  5. With a different Date of Birth on your Ghana Card which might be accidental, you cannot claim your benefits after retirement.
  6. Contributors who have problems as mentioned above should correct all those anomalies in time before pension so that all the dates are commensurate (tally) for easy claiming of benefits.
  7. Periodically, contributors are urged to update their beneficiaries to effect the necessary changes.
  8. Tier 2 became operational without contributors being made to input any beneficiary as it pertains to SSNIT. This means many contributors below the age of 60, have died in the last two years; and their Tier 2 Lump Sum was not claimed by any beneficiary due to that lapse.
  9. Your SSNIT beneficiaries are not necessarily the same ones to be used for your Tier 2. You can make, omissions, insertions, maintain them all, or overhaul them.
  10. If the number of your beneficiaries exceeds FIVE (5), request an additional Form.
  11. There is NO limitation to the number of beneficiaries. However, ensure that your allocation of benefits sums up to 100%.
  12. If all the beneficiaries are minors, ensure that you include one adult  (probably the mother/father of the children) who can make claims in your “catastrophic absence” through a Letter of Consent.
  13. Without any adult among the beneficiaries, in case of any misfortune (death of contributor), your Tier 2 Lump Sum will be withheld in your account till any of the minor beneficiaries attain the age of eighteen (18).
  14. Ensure that you input the correct Date (s) of Birth of your beneficiaries that correspond to those on their Birth Certificates, or the same dates used on the Form above will be used in the processing of the “ID (Ghana Card). Otherwise, they cannot make claims.
  15. Tier 3, which is voluntary by the contributor, shouldn’t exceed 16.5% of the contributor’s basic salary.



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