What are the features of the scheme?

Published on 01 December, 2015.

  1. It is a 3-tier scheme.
  2. The first two are mandatory for all workers.
  3. The Third-Tier is a voluntary, fully-funded by members and a privately managed provident fund and personal pension scheme.
  4. SSNIT pays only the monthly pension of the beneficiary and the Fund Managers who manage the Second Tier with the 5% contribution rates will pay the lump sum.
  5. The Act is for both the public and private sector workers.
  6. Minimum contribution rate – 18.5% of the approved monthly minimum wage (13.5% – SSNIT 1st Tier; 5% – 2nd Tier).
  7. Maximum Contribution – a maximum amount will be determined by SSNIT in consultation with the NPRA periodically. Currently, the maximum contribution is on a salary of GH¢25,000.00.
  8. Minimum contribution period is 180 months in aggregate or 15 years.
  9. Entry age/Maximum Age – New minimum age is 15 years and the maximum age for a new entrant is 45 years.
  10. Age Exemption – those who were 55 years and above before the commencement of Act 766 were exempted from this new scheme. On the other hand, a person who is 55 years and above exempted from the Act may opt to join the scheme.
  11. The new scheme includes almost all the various pensions systems in the country.