Inflation, other factors contributed to 10% pension increment – Ofori-Tenkorang

Dr. John Ofori-Tenkorang, Director-General of SSNIT Dr. John Ofori-Tenkorang, Director-General of SSNIT

Highest pensioner to receive GH¢142,564.97

Minimum pension for new pensioners will be GH¢300.00

Redistribution to cushion members on low pension

The Director-General of SSNIT, Dr John Ofori-Tenkorang has said a number of factors including inflation were considered before determining the new pension benefit.

The Trust on Tuesday, January 10, 2022 announced a 10% increment monthly pension for pensioners effective January 20, 2022.

The move according to the SSNIT follows consultation with the National Pensions Regulatory Authority (NPRA) and is in line with Section 80 of the National Pensions Act 2008 (Act 766).

Responding to questions posed by journalists in Accra, the SSNIT Director-General said, “We look at targeted inflation that is what the forecast of inflation in the year we are to pay the pensioners’. In general, if you look at the historic plot, we’ve tracked it very well. Sometimes we also look at wage inflation”.

He continued, “We use part of people’s premium that they are currently paid to also pay part of the pensions, in addition to using money from our investments, among others. So, if you don’t have contributors salaries increasing at a rate that matches your indexation or you do not have the number of people that are joining the scheme increasing, you may end up in a situation where there’s a mismatch between the premiums collected and the payments you’re making,” he said.

Meanwhile, in a press release copied to GhanaWeb, SSNIT noted that, “All pensioners on the SSNIT pension payroll as at 31st December 2021 will have their monthly pension increased by a Fixed Rate of 9.68% plus a redistributed Flat Amount of GH¢3.44.”

Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in conformity with the solidarity principle of social security.

“The effective increase in pensions would therefore range from 9.683% for the highest-earning pension to 10.83% for the lowest pension earner,” it added.

Effective January this year, the minimum pension for all new pensioners will be GH¢300.00.

Additionally, The Trust has revealed that the highest-paid pensioner in the country as of the end of December 2021 is expected to earn GH¢142,564.97 as benefits.

Read the full statement below: