SSNIT says pensions paid are reflection of basic salaries of workers

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SSNIT

The Social Security and National Insurance Trust (SSNIT) says pensions paid to retirees are only a reflection of the basic salaries of workers.

Dr. John Ofori-Tenkorang, Director -General of SSNIT, said pensions paid to retirees are only a reflection of the basic salaries of workers.

He said 25 per cent of workers on its scheme pay monthly contributions of GH¢55.00 or less.

“If these workers are to retire on the basic salaries of GH¢500 or less, they would earn a monthly pension of GH¢300 as their first pension,” he said.

Similarly, about 66 per cent of workers had declared basic salaries of GH¢2,000 or less to the Trust, he said.

“Pensions are a direct reflection of the basic salaries on which members’ contributions are paid. Therefore, the higher the salaries on which members contribute, the higher the pension.

“Also, the longer the period of contribution, the higher the Pension Rights (percentage of salaries) earned”, he pointed out.

He said for this reason, members who contribute for 35 years and above, earn the maximum Pension Right of 60 per cent.

Dr. Ofori-Tenkorang made these revelations at the Upper West Regional edition of stakeholders’ consultation meeting on pension issues in Wa on Thursday.

The leadership of the Trades Union Congress (TUC) in partnership with SSNIT organised the forum for workers and pensioners, as well as regional and district leaders of the TUC to help them educate workers about the Scheme

It was also to sensitise members about the benefits the Scheme offers to enable them plan effectively towards retirement.

Dr. Ofori-Tenkorang said contrary to public perception about the Scheme, it is generous.

He said although workers contribute 11 per cent of their basic salaries, the scheme guarantees members up to 60 per cent of the average of their three-year best salaries and pays them pension for life with annual increments.

He noted that the amount pensioners received was better than what they would have received if they had invested their contributions in 91-Day Treasury Bills.

“For pensioners who had been on the Pension Payroll for 15 years, they had received more than twice what they would have received from Treasury Bills”, he emphasised.  

The Director -General of SSNIT encouraged workers to focus on the value the SSNIT Scheme offers and contribute based on their correct salaries to enable them to enjoy enhanced pensions.

He explained that the SSNIT Scheme was opened to all workers in Ghana, including self-employed persons who could join and contribute to the Scheme to enjoy pension in the future.

Dr. Ofori-Tenkorang announced that SSNIT would this year roll out a comprehensive campaign to help register self-employed persons and informal sector workers onto the Scheme.

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