The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has indexed monthly pensions upward by 25%.
The increment was effected in line with Section 80 of the National Pensions Act 2008 (Act 766).
The indexation means that the highest-earning pensioners would witness a 19.10% increment in the pensions, while low-earning pensioners will see a 43.53% increment in their pensions in the year 2023.
The Chief Actuary, Mr. Joseph Poku, made this known to the media at a conference in Accra last Friday.
“All Pensioners on the SSNIT Pension Payroll, as at 31st December, 2022, will have their monthly pension increased by a Fixed Rate of 25% plus a redistributed Flat Amount of GH¢73.58.The effective increase in pensions would therefore range from 19.10% for the highest-earning pensioner to 43.50% for the lowest pension earner,” Mr. Poku said.
He explained that the “Redistribution is a mechanism applied to the indexation rate to cushion Members on low pensions in conformity with the solidarity principle of social security.”
Accordingly, the highest earning pensioner as at 31st December 2022 would receive GH¢169,725.89, an increase of GH¢27,160.92 over the 2022 figure, and the lowest-earning Pensioner will receive GH¢430.58, an increase of GH¢130.58 over 2022 minimum pension of GH¢300.00.
According to the Chief Actuary, “the minimum pension for all new Pensioners effective January 2023 will be GH¢300.00.” “This means, Pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum,” he stressed.
He also assured pensioners that they will receive their monthly pensions on the third Thursday of every month without fail.
Meanwhile, it is expected to cost the state pension provider some GH¢850 million as compared to the GH¢305 million estimated for the previous year.
Pensions are influenced largely by basic salaries of contributors and the number of months contributions were made. Generally, pensions are low as a result of low basic salaries (workers declared to SSNIT) for the payment of their 13.5% (of basic salaries) contributions.
As at November 2022, the Trust had paid GH¢3,805,128,416.00 to some 234,455 pensioners and other beneficiaries.
