SSNIT increases monthly pension payment by 15%

The Social Security and National Insurance Trust (SSNIT), in collaboration with the National Pensions Regulatory Authority (NPRA), has decided to raise the pension payment by 15% per month starting in 2024.

Chief Actuary of SSNIT, Joseph Poku, stated during a press conference in Accra on Thursday, January 11, that beneficiaries would witness a redistribution of GHC73.10p for both low and high pension payers, in addition to a flat rate of 10% on all of their monthly pensions starting on January 18, 2024.

“The indexation is a technique we use to adjust pensions payment to help maintain the purchasing power of pensioners”, Mr. Poku said.

SSNIT increases monthly pension payment by 15%

Providing more details, he said all pensioners on the SSNIT Pension Payroll as of December 31, 2023 will have their monthly pension increased by a Fixed Rate of 10% plus a redistributed flat amount of GH¢79.10.

He pointed out that the effective increase in pensions would therefore range from 10.05% for the highest-earning pensioner to 36.37% for the lowest-earning pensioner.

“The 15% indexation rate will result in an additional pension expenditure of ¢697.64 million. The total expenditure in 2024 for pensioners on the Pension Payroll as at 31st December 2023 will be ¢5,387.72 million”.

“Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. The SSNIT Scheme, like any other defined benefit scheme, pays pensions which mirror the earned salaries on which contributions were paid,” Mr Poku said.

Akosua Boatemaa

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