You must be at least 60 years and You must have made a minimum contribution of 240 months in aggregate. Per the current adjustments 70% of pensioners will receive 11% or more as effective increase in their pensions. Ghana votes today: Allying with peace for stable business growth and development, Make better financial decisions in 2020; here is a guide, How you may spend on Food in January 2020. Officials of SSNIT have, on many occasions, explained to contributors and the public that the SSNIT Pension Scheme is a contributory Scheme with a fixed rate of contributions and defined benefits. These are Superannuation Pension/ Old age Pension, Invalidity Pension, Survivor’s Lump sum, and Emigration benefit. The Social Security and National Insurance Trust (SSNIT) appears to have taken former President John Mahama on a tutorial over pension benefit payments. The Social Security and National Insurance Trust (SSNIT) says it does not and will not cheat pensioners in the payment of pension benefits. You can earn a pension right between 50% and 80% depending on the number  of months contributed at the time of retirement. the sign in details that were emailed to you when you enrolled. This implies that, contributors get exactly what they put in. The Director- General of SSNIT stressed that the Trust is the only institution that guarantees Social Security benefits ranging from the Old age retirement pension, Old-Age Lump sum, Invalidity Pension and Survivor’s Benefits for a sign-on contribution amount of just 11% of a basic monthly salary. The Social Security and National Insurance Trust (SSNIT) has announced in a 11% increase in the monthly benefit of pensioners. SSNIT, in a statement on Wednesday, 27 November 2019 in response to a press conference addressed by The Forum for Public Sector Registered Pension Schemes (The FORUM) who accused the state pension management body of cheating its beneficiaries, said it will “accurately and promptly” pay all benefits due members effective 1 January 2020. Free SHS programme, NABCO and COVID-19 relief packages – An insight into Akufo Addo’s re-election. The Pension Manager, Mr Joseph Poku, took participants through SSNIT benefits computation. Dr. Ofori-Tenkorang speaking. The minimum pension payment is based on fifty per cent (50%) of the average annual salary for the three best years of a members working life. To use the Portal ID for the first time, click on the SIGN Consumer inflation drops to 9.8% in November – What it means to your pocket, Meet the Chairperson of the Electoral Commission – Madam Jean Mensa, Fuel prices to rise by mid December, this is how much you’ll pay for fuel- IES. You will be made to appear before a Medical Board for examination. 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 31st December, 2019 (SSNIT Website). As stakeholders of the Scheme, contributors are catered for under three main contingencies where benefits are paid to them as and when they qualify. Where a member dies having satisfied the minimum contribution period of 240 months, in aggregate, a lump sum payment of the earned pension of the deceased member for a period of 12 years will be made at the present value using the prevailing Treasury Bill Rate. This is in a accordance to the means testing method of paying social benefits. With this redistribution, lowest earning pensioners currently earning GHS300.00 will have their pensions increased to GH¢357.18 (an increase of 19.06%). This will be paid to you at the, present value based on the prevailing Treasury Bill Rate. This amount is paid to SSNIT. Story By Dave Alamisi On Dec 18, 2019. The Act is for both the public and private sector workers. Their monthly pension benefits shall be paid by SSNIT. Call us for guidance on how to begin a tax-qualified supplimentary pension account. It has, therefore, called on the public to rest assured that the Trust will not do anything that will negatively affect contributors. When the three-tier pension scheme was introduced in 2010 part of the contribution to SSNIT was hived off and paid into privately managed second-tier pension schemes. The Social Security and National Insurance Trust (SSNIT) appears to have taken former President John Mahama on a tutorial over pension benefit payments. Survivor’s Lump sum. You must be 55 and above but below 60 years of age. When a member retires voluntarily on attaining age 55 or more, but below 60 years and has contributed for not less than 180 months in aggregate, he is entitled to a reduced pension. The Third-Tier is a voluntary, fully-funded by members and a privately managed provident fund and personal pension scheme. In a release that seems to suggest Mr Mahama is clueless about pension benefit payments, SSNIT gave an expert explanation of how pension contributions are made. SSNIT, or as it is called, The Social Security and National Insurance Trust is a public trust that has legal backing by way of a statute. The Asantehene, Otumfuo Osei Tutu II, has commended the Board of Trustees and Management of Social Security and National Insurance Trust (SSNIT) for working tirelessly to improve the operations and image of the Trust. A dependant(s) may call at SSNIT Branch Office to collect, complete and submit an Application Form to which he will attach the following, The Membership Certificate of the deceased if available, SSNIT will process the application and a lump sum payment will be made.​. The same rate was applied for 2019, however the 2020 indexation of 11% is higher than the forecasted inflation rate of 8%. In a release that seems to suggest Mr Mahama is clueless about pension benefit payments, SSNIT gave an … This benefit is paid monthly to a member who is totally incapable of earning a living through working. password, key in your new password and confirm it and click the Be alert to your Social Security Responsibilities for a better service from SSNIT. you will then receive a residual pension. Report to the nearest SSNIT Branch Off ice with the Medical report from a recognised Medical Practitioner certifying your incapacitation. You can also call the SSNIT Contact Centre for assistance. The report further noted that “the SSNIT Pension is low because SSNIT has misinterpreted the Pension Law, which has resulted in low payment of pensions, thus making the contributors worse off.” The Third-Tier is a voluntary, fully-funded by members and a privately managed provident fund and personal pension scheme. These are. Ghana election 2020- Who wins and what awaits the next government? “The salaries on which you contribute determine your pension. To change your password click on Change Password on the side Where a pensioner dies before attaining age 72, a lump  sum payment based on the present value of his unexpired  pension will be made to his beneficiaries. CHANGE PASSWORD button to proceed. Redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security. Aside the mandatory Tier 1 & 2 schemes, it is important for you to take advantage of the tax relief under Tier 3. Superannuation Pension/ Old age Pension. SSNIT has four main benefits under ACT 766, however, the majority of beneficiaries fall under what is known as the Superannuation/Old Age Pension; … This education article covers only the Superannuation Pension/ Old age Pension popularly knows as a retirement benefit. Category 1 members upon retirement shall receive their pension lump sum benefit payment from GESOPS, a one time pension payment. With the introduction of the supplementary retirement schemes, the contributor will have access to more than one retirement income. Report the death of a member to the nearest SSNIT Branch Office with any one of the following evidences of Death. When a member retires voluntarily on attaining age 55 or more, but below 60 years and has contributed for not less than 180 months in aggregate, he is entitled to a reduced pension. On receiving information of the death of a member, SSNIT will request the nominated dependant(s) to apply for the benefit. If your answer to any of the questions above is NO, then kindly contact the nearest SSNIT Branch for advice and remedial action. Enter your details and follow Complete the form and attach two of your recent passport-size photographs. Inform the nearest SSNIT Branch Office at least three (3) clear months before your retirement. This was contained in a press release earlier on in the year. Social Security Number as username and the corresponding The Social Security and National Insurance Trust (SSNIT) has announced in a 11% increase in the monthly benefit of pensioners. re-enrolment process. The issue of minimum pension comes as a boost to those who by virtue of low salaries paid low contributions and thus earn less than the GH¢300. This give pensioners a real increase of 3% on their benefits. SSNIT increases pension benefits by 11% for 2020 SSNIT increases pension benefits by 11% and pays GHS300 as minimum pension benefit to new pensioners while old pensioners receive GH¢357.18 as minimum SSNIT increased the benefit in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766). Submit your completed forms and photographs to the SSNIT Branch Office as, After you have been certified invalid you will be entitled to a pension as follows. Share. Multiply your best 3 years average salary by your pension credit earned. New pensioners retiring from 1st January 2020 under the SSNIT Tier one arrangements will however receive GH¢300 as minimum pension. The Social Security and National Insurance Trust (SSNIT) paid close to GH¢ 2.5 billion in pension benefits in 2018. The remaining 80% will be returned to SSNIT by GESOPS in line with section 2 of Act 883. The Act is for both the public and private sector workers. "SSNIT has seen somepositive changesduring the tenure of the current Board", he said. SSNIT provides 4 types of benefits to members or contributors. 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. Invalidity Pension. the steps to continue. 240 months guarantee you 50% and every additional month attracts an additional 0.125%. You must have made a minimum contribution of 12 months within, You must have been declared permanently invalid and incapable, by a qualified and recognised medical officer and. It is charged with the mandate of overseeing the administrative functions of Ghana’s National Pension Scheme. Submit your completed form to the SSNIT Branch Office as early as possible. The TUC explained that under the Provisional National Defense Council (PNDC) Law 247, retirees received lump-sum payment equal to 25 percent of their total pension benefit. Contributing regularly to your pension account is the fastest way to build up your retirement savings. The member who retires at age 60, which is the compulsory retirement age, and has contributed for not less than 180 months in aggregate, is entitled to a full pension. Where a worker works beyond the minimum contribution period, the amount of pension payable is increased by one and half per cent for every additional twelve months worked up to a maximum of eighty per cent. Where you have not made the minimum contribution period of 240 months, but have qualified in age, you will be entitled to a lump sum payment of your. If you are logging in as an Employer Representative, enter If you are logging in as a Member of the scheme, enter your The contributions for any given month are due no later than 14 days after the end of that month. The contribution amount due is 13.5% of the employee’s basic monthly salary. SSNIT to pay GH¢3bn pension benefits in 2019. If you so opt, however. 98% of pensioners will receive an effective increase equal to or above the targeted inflation rate for 2020. Where your incapacitation is confirmed by the Medical Board, you will obtain Social Security Application Forms from the Branch Office. The SSNIT Pension Scheme is Ghana's foremost pension scheme and is a social insurance scheme providing income protection for workers in both government and private sectors as well as for those in the informal sector (who voluntarily choose to join). He said, three factors are considered in the computation, which included the age at which one retires, the average of best three years’ basic salaries on which one contributed and the number of months of contributions. The first of these is fairly straightforward: if you work for an employer for 30 years, then 30 is used as one of the factors in your benefit calculation. A Portal ID is given automatically after the enrolment and The Forum for Public Sector Registered Pension Schemes, comprising 12 public-sector unions has given the government a two-week ultimatum to address what it describes as low pension benefits by the Social Security and National Insurance Trust (SSNIT). the 0.5%. This hopefully should provide enhanced income security for subscribers. You must have made a minimum contribution of 240 months in aggregate. Saves GH₵130m after payroll clean-up 11,000 non-existent pensioners deleted The Social Security and National Insurance Trust (SSNIT) has saved GH₵200million in legacy investment-related costs after undertaking value-for-money audits and ensuing renegotiations, Director-General of SSNIT, Dr. John Ofori-Tenkorang has said. This tier is a mandatory scheme that is managed by the Social Security and National Insurance Trust (SSNIT). SSNIT increases pension to cater for inflationary pressures in the benefit. In 2019, it has paid GH¢200 million in paying pension benefits to the over 200,000 pensioners per month. The Social Security and National Insurance Trust (SSNIT) says it does not and will not cheat pensioners in the payment of pension benefits. BENEFITS UNDER THE SSNIT SCHEME. Most defined benefit pension plans use a formula that calculates three factors: the number of years of service of the employee; the final average salary of the employee; and a benefit multiplier. Note that the employee gets a tax relief on the percentage he/she personally contributed — i.e. This benefit is paid monthly to a retired member of the Scheme. Answer the security question, Key in your current So, effectively employers will pay their … IN icon on the top right corner. This means you will be receiving an annual benefit of GHS 31,596.75 and a monthly benefit of GHS 2,633.06. For early retirement from 55 and below 60, the pension is computed as follows, Whether you qualify for a full/reduced pension, you could choose to collect, 25% of your 12 years pension as a lump sum. By the end of 2019 the Social Security and National Insurance Trust would have paid out a total of GH¢3billion in pensions benefit to its growing number of beneficiaries, Charles Akwei Garshon, Head of External Communications at SSNIT, has said. This could happen when the member dies whilst in service or during retirement but not after age 75 years. If you have not made the minimum contribution period, you will receive a pension based on 50% of the average of your best three years salary. Earned Pension Right - Number of months you have contributed to the Scheme. Where a member dies prior to satisfying the minimum contribution period of 240 months, in aggregate, 50% of the average of the best 3 years salary pension for the next 12 years will be paid at the present value based on the prevailing Treasury Bill Rate. menu. The new indexation rate will increase SSNIT’s liability for 2020 by GH¢ 243 million. The TUC explained that under the Provisional National Defense Council (PNDC) Law 247, retirees received lump-sum payment equal to 25 percent of their total pension benefit. Are you a Contributor to the Social Security fund? The member must have contributed for 12 months within the last 36 months preceeding the incidence of the invalidity. the Biometric Terminal and request for an ID. The employer pays 13% and the employee pays 0.5%. This benefit is paid to dependants of members under the following conditions, When the member, while a pensioner, dies before. The Social Security and National Insurance Trust (SSNIT) has increased the benefits of pensioners by 11 per cent. The member who retires at age 60, which is the compulsory retirement age, and has contributed for not less than 180 months in aggregate, is entitled to a full pension. Members should fulfill their social security guaranteeship obligations before making their claim. The decision, according to SSNIT was taken after considering the rate of increase of prices of goods and services, adjustment in public sector salaries, as well as available funds with the company. If you have made the minimum contribution of 240 months or more, you will be entitled to your earned pension. password that was emailed to you. SSNIT Pension Scheme . The benefit is paid in a lump sum to the nominated dependants of a member upon his/her death. The SSNIT Branch Office will then supply you with an Application Form for Payment of Pension for completion. 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. He must have been certified by a Medical Board as being incapable of any normal gainful employment due to a permanent physical or mental disability. Complete the forms and attach two (2) recent passport size photographs. INSET: A cross section of Organized Labor THE SOCIAL Security and National Insurance Trust (SSNIT) has announced its Under the 2nd and 3rd Tier Schemes, workers may use their future lump sum benefits as collateral to secure a mortgage loan for a primary residence. There are four (4) types of benefits under the SSNIT scheme that members can enjoy depending on which contingency has occurred. 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. SSNIT will advise you to collect your monthly pension at a bank of your choice. When the three-tier pension scheme was introduced in 2010 part of the contribution to SSNIT was hived off and paid into privately managed second-tier pension schemes. SSNIT. In order to get a portal ID, please go to the nearest SSNIT Branch or The Chairman of the Board of Trustees of Social Security and National Insurance Trust (SSNIT), Dr. Kwame Addo-Kufuor has called on members of the National Association of Pensioners (NPA) to support the Trust’s effort in educating the public on the SSNIT Scheme. 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