By Paul Mamattah
The Social Security and National Insurance Trust, SSNIT, has increased monthly pensions by 10 per cent for the year 2022.
The increment was done in consultation with the National Pensions Regulatory Authority in accordance with Section 80 of the National Pensions Act 2008 (Act 766)
All pensioners on the SSNIT Pension Payroll as at December 31, 2021, will have their monthly pension increased by a fixed rate of 9.68 percent plus a redistributed flat amount of GH¢3.44.
This was disclosed by the Chief Actuary of SSNIT, Joseph Opoku in Accra at a press conference to announce the new indexation of pension for pensioners for 2022.
He explained that redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in conformity with the solidarity principle of social security.
He added that low pensions arise as a result of low basic salaries that were declared to SSNIT on which contributions were paid.
Mr Opoku stated that the effective increase in pensions would therefore range from 9.683 percent for the highest earning pension to 10.83 percent for the lowest pension earner.
According to him, the highest earning pensioner as at 31st December 2021 will receive GH¢142,564.97 and pensioners receiving the minimum pension of GH¢300.00 as at 31st December, 2021 will have their monthly pensions increased to GH¢332.48
He noted that the minimum pension for all new pensioners effective January 2022, will be GHc300.00 saying; pensioners whose computed monthly pensions fall below GHc300.00 will be placed on this minimum.
Answering questions from journalists, the Director-General of SSNIT, Dr. John Ofori-Tenkorang, assured that management of the Trust will continue to work hard to guarantee positive annual indexation for pensioners for the long term sustainability of the Scheme.
He reiterated that the Trust remains committed to paying all legitimate benefits accurately and timorously disclosing that the projected expenditure on pension for the year 2022 is GH¢ 3.5 billion.
Dr. Ofori-Tenkorang emphasized that the lowest earning pensioners will get an indexation rate of 10.83 percent indicating that all pensioners will receive an increase equal to or above the targeted inflation rate for 2022.
He explained that the Indexation is a technique to adjust income payments in order to maintain the purchasing power of the public and cushion the vulnerable against inflation.
