Story by Tilda Acorlor
The Chief Actuary of Social Security and National Insurance Trust (SSNIT), Mr. Joseph Poku has stressed the need for workers, especially those in the informal sector to contribute to the scheme to enjoy its pension benefits when they retire.
He said the SSNIT Scheme is the best and most generous compared to other insurance schemes.
Mr. Poku revealed that even though workers contribute 11% of their basic salaries, the Scheme guarantees them up to 60% of the average from their three years’ best salaries and pays them a pension for life in annual increments.
The Chief Actuary said this in Ho when he was addressing a consultative forum on behalf of the Director General of SSNIT, Dr. John Ofori Tenkorang in the Volta region for regional and district leaders of the Trades Union Congress (TUC).
The forum, which forms part of an effort to improve public knowledge of the operations of the scheme, was in collaboration with the National leadership of TUC and SSNIT.
Mr. Poku further noted that if these workers were to retire with the basic salaries of GHS 500 or less, they would earn a monthly pension of GHS 300.00.
He explained that pensions are a direct reflection of the basic salaries on which contributions are paid, therefore the higher the salaries on which members contribute, the higher the pension. He also added that the longer the period of contribution, the higher the pension right earned, therefore members who contribute for 35 years and above earn the maximum pension right of 60%.
He encouraged participants to focus on the value the SSNIT Scheme offers and contribute to their correct salaries to enjoy enhanced pensions.
The Chief Actuary further revealed that SSNIT will this year roll out a comprehensive campaign to register self-employed persons and informal sector workers onto the Scheme through an App.
“The Trust will soon launch a SSNIT App and Mobile Money payment platform to ease doing business with members, especially the self-employed,” Mr. Poku said.
The Deputy Secretary General of TUC, Mr. Joshua Ansah urged SSNIT to implement measures that will help their members track their contributions from the first day of joining the Scheme till the day they retire.
“The Trust is hopeful that the engagement with members of the Congress will also help to deepen the knowledge of stakeholders about the Scheme, and the value it offers and increases the level of awareness among Members,” Mr. Ansah said.
The Chairman of the Health Services Workers Union for Volta/Oti region, Mr. Emmanuel Gator commended SSNIT for partnering with the TUC to educate members about the Scheme.
He said there was the need for similar engagements to be held continuously so that more workers could be better informed about the Scheme.
The forum was well attended by both National and Regional Executives of TUC and the Management of SSNIT respectively.
The Social Security and National Insurance Trust (SSNIT) is a statutory public institution charged under the National Pensions Act, 2008 (Act 766 as amended by Act 883) with the administration of Ghana’s Basic National Social Security Scheme. Its mandate is to cater for the First-Tier of the Three-Tier Pension Scheme. Currently, the Trust is the largest non-bank financial institution in Ghana.
The SSNIT Scheme replaces part of the lost income of Members due to Old Age, Invalidity or upon the death of a Member, where nominated dependant(s) receive a lump sum payment. It also pays Emigration benefits to non-Ghanaian Members who are leaving Ghana permanently.
The SSNIT Pension Scheme has an active membership of over 1.7 million. In June 2022, the Trust paid a total of GH¢277.13 million to some 228,367 pensioners. The highest pension earner receives GH¢142,564.97 per month, while the lowest-earning pensioner gets GH¢300.00.