SSNIT to Increase monthly pension payments by 15%
SSNIT office
The Social Security and National Insurance Trust (SSNIT) has announced a 15% increase in monthly pension payments, in accordance with the 2024 indexation rate. This adjustment, mandated by Section 80 of the National Pensions Act, 2008 (Act 766), will benefit all valid pensioners on the SSNIT pension payroll as of the end of December 2023.
Under the revised rates, pensioners will see their monthly pensions rise by a fixed rate of 10%, along with an additional redistributed flat amount of ¢79.10. This means that even the minimum-wage pensioner will now receive GHC409.10, representing a significant 36.37% increase compared to the minimum pension payment in 2023.
On the other end of the spectrum, the highest-earning pensioner will receive a monthly pension of GH¢186,777.58 following the adjustment. These revised rates aim to strike a balance between addressing the rising cost of living and sustaining the pension scheme.
Joseph Poku, Chief Actuary at SSNIT, explained that the 15% increment was determined in collaboration with the National Pensions Regulatory Authority (NPRA). The objective is to safeguard pensioners from the impact of increasing living expenses while ensuring the long-term viability of the scheme.
Speaking at the launch of the 2024 Pension Indexation Report, Joseph Poku noted that the adjustment was made in response to a forecasted 20% wage inflation for active contributors and a projected inflation rate of 23.16% for 2024, as estimated by SSNIT.
As a result of the increase, the average monthly pension will rise from ¢1,527.29 in 2023 to ¢1,756.38 in 2024. This 15% indexation rate will lead to an additional pension expenditure of ¢697.64 million. The total expenditure for pensioners on the Pension Payroll as of 31st December 2023 is projected to reach ¢5,387.72 million in 2024.
This adjustment in pension payments reflects SSNIT’s commitment to ensuring that pensioners are able to cope with the changing economic landscape, considering both inflation and wage trends. It is expected to provide some relief to retirees and contribute to their financial well-being in the coming year.
SOURCE: Coverghana.com.gh
