Published on 03 January, 2020.

The Social Security and National Insurance Trust (SSNIT) has, in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766), indexed monthly pensions for the year 2020.

The Social Security and National Insurance Trust (SSNIT) has, in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766), indexed monthly pensions for the year 2020.

The 2020 indexation rate was determined using the percentage change in the annual average Consumer Price Index (CPI) for 2019, forecast of the 2020 National Annual Price Inflation, ability of the Fund to pay and the long term sustainability of the Scheme among others.

The approved overall indexation rate of 11% for 2020 is higher than the forecasted inflation rate of 8.0% for 2020. The overall indexation amount was redistributed at a Fixed Rate of 6.6% and a Flat Amount of GH¢ 37.38 for all Pensioners on the SSNIT Pension Payroll as at 31^st December, 2019.

With this redistribution, lowest earning pensioners will get an effective increase of 19.06%.

70% of pensioners will receive 11% or more as effective increase in their pensions.

98% of pensioners will receive an effective increase equal to or above the targeted inflation rate for 2020.

Redistribution is a mechanism applied to the indexation rate to cushion Members on low pensions in line with the solidarity principle of social security. Low pensions arise as a result of low basic salaries on which contributions were paid.

Accordingly, Pensioners on the SSNIT Pension Payroll as at 31^st December, 2019 receiving the minimum pension of GHS300.00 will have their pensions increased to GH¢357.18 (an increase of 19.06%).

The minimum pension for all new Pensioners for 2020 will be GH¢300.00.

The new indexation rate will increase the current pensions paid by GH¢ 243 million for the year 2020.   

About SSNIT

The Social Security and National Insurance Trust is a Statutory Public Trust with the mandate of administering the First Tier Basic National Social Security Pension Scheme under the National Pensions Act 2008 (Act 766).

SSNIT is charged with the responsibility of replacing part of lost income to its contributors and their dependants due to old age, invalidity, emigration or death.

The pension a member enjoys under the First Tier Scheme is dependent on the Basic Salary (on which contributions were made) and the number of months one has contributed to the Scheme.

The Trust, in December 2019, paid a total of about GHS224 Million to about 216,000 Pensioners on the payroll bringing its total expenditure on benefits payment for the year 2019 to about GHS3 Billion.

The Management of SSNIT wishes its cherished Pensioners a fulfilling New Year.