SSNIT sensitises NTC workers
Social Security and National Insurance Trust (SSNIT) contributors have been urged to ensure that their employers are deducting the correct contributions, to update their beneficiary lists.
The Public Relations Officer (PRO), Ms Priscilla Akpene Zancoh, who made the call also advised contributors to periodically check their statements to ensure that contributions were being paid.
This proactive approach according to the SSNIT officials, would ensure hard-earned savings were secured providing a sense of “financial stability” for the future.
She was making a presentation to the staff of the New Times Corporation (NTC) in Accra yesterday, as part of the SSNIT’s outreach programme to educate them on the benefits and operations of SSNIT, promoting awareness and understanding of the scheme.
Speaking on issues related to pension, Ms Zancoh said contributors to the scheme were entitled to five core benefits, including old age pension, invalidity pension, survivorship pension, emigration benefit, and lump sum payment.
“The old age pension is the most familiar benefit, which is paid to contributors who have reached the age of 60 and have made at least 15 years of contributions.
“This pension amount is determined by three factors namely, earnings, length of contribution, and age,” she stated
Ms Zancoh explained that contributors who had worked for 15 years earned a minimum percentage of 37.5 per cent of their average salary, while those who had worked for 20 years earn a higher percentage.
The SSNIT PRO also said the scheme applied an age reduction factor for contributors who opted for a “reduced pension” before reaching the age of 60, meaning contributors who retired earlier would receive a lower pension amount.
Ms Zancoh also disclosed that over 318,000 contributors declare salaries below GH¢500, paying an average of GH¢55 per month in contributions.
Despite this, she said SSNIT paid a minimum pension of GH¢300 per month to these contributors, subject to annual indexation.
Survivor’s lump sum she explained, was paid to beneficiaries of deceased members or pensioners, while the Emigration Lump Sum, was paid to foreign nationals who had worked in Ghana and were returning to their home country.
According to Ms Zancoh, contributors who have made at least 15 years of contributions are entitled to a monthly pension and the pension amount is determined by the contributor’s earnings, length of contribution.
“What you put in determines what you receive in the end. If your salary is high and your contribution is high, definitely your pension will also be high,” she explained.
The PRO also emphasised that contributors who invested their funds in treasury bills would exhaust their resources within nine years of retirement, whereas SSNIT provided a lifetime pension encouraging the public to embrace the scheme.
She also touched on the “invalidity pension” which she said was paid to contributors who had suffered permanent disabilities.
“Currently, over 1,700 people are receiving invalidity pensions, with the highest paid pensioner receiving GH¢19,783 monthly,” she revealed.
A breakdown of the Social Security and National Insurance Trust (SSNIT) contributions according to the officials revealed that employees are required to contribute 5.5 per cent of their basic salary, while employers subsidise with 13 per cent to make a total of 18.5 per cent
According to SSNIT officials, this total contribution had increased from 17.5 per cent under the old law to 18.5 per cent under the new law.
“Of the 18.5 per cent contribution, 13.5 per cent is paid to SSNIT, known as the first tier, which is responsible for paying monthly pensions with the remaining five per cent managed by a separate fund manager, known as tier two, which pays out lump sums to contributors,” she added.
BY CYNTHIA ASAMPANA
