SSNIT Saves GH₵327 Million From ‘Ghost’ Pensioners
The Chief Actuary warned persons behind such unlawful act to desist from it else they risk the law deally ruthlessly with them when they are caught.
“So for those taking the benefits, they are doing so fraudulently but at some point the law will catch up with them but that is what they do”.
The periodic meetings, which are being organized in collaboration with the national executives of TUC form part of the Trust’s efforts to improve public knowledge about its operations.
According to Mr. Poku, “engagements such as this helps to address concerns of Members, clarify misconceptions about the operations of the Trust, improve transparency and accountability and enhance stakeholder buy- in.”
In his presentation, he indicated that, currently 25% of workers on the SSNIT Scheme pay monthly contributions of GH¢ 55 or less. He further noted that if these workers were to retire on the basic salaries of GH¢ 500 or less, they would earn a monthly pension of GH¢ 300.00.
He explained that pensions are a direct reflection of the basic salaries on which contributions are paid, therefore the higher the salaries on which Members contribute, the higher the pension. He also added that the longer the period of contribution, the higher the pensions right earned, therefore members who contribute for 35 years and above earn the maximum pension right of 60%.
The data also shows that about 66% of workers have declared basic salaries of GHS 2,000 or less to the Trust. The Chief Actuary indicated that the pensions paid by SSNIT is only a reflection of these basic salaries workers have declared.
Contrary to public perception, Mr. Poku described the Scheme as generous arguing that, even though workers contribute 11% of their basic salaries, the Scheme guarantees Members up to 60% of the average of the three years’ best salaries and pays them pension for life with annual increments.
Comparatively, he showed that what Pensioners are receiving is better than what they would have received if they had invested their contributions in the 91-Day Treasury Bills. “For Pensioners who have been on the Pension Payroll for 15 years, they have received more than two times what they would have received from Treasury Bills”.
The Chief Actuary, encouraged participants to focus on the value the SSNIT Scheme offers and contribute on their correct salaries to enjoy enhanced pensions.
He added that SSNIT will this year rollout a comprehensive campaign to register self-employed persons and informal sector workers onto the Scheme. “The Trust will soon launch a SSNIT App and Mobile Money payment platform to ease doing business with Members especially the self-employed.
Speaking on the sideline of the meeting, the Chairman of the Greater-Accra Regional Council of Labour, TUC, Mr. Patrick Tetteh Binyemi underscored the importance of extending the compulsory retirement age from 60 to 65 years.
Speaking on the sideline of the meeting, the Chairman of the Greater-Accra Regional Council of Labour, TUC, Mr. Patrick Tetteh Binyemi underscored the importance of extending the compulsory retirement age from 60 to 65 years.
He explained that there is an urgent need to consider reviewing the pension age to enable workers contribute more and enjoy enhanced pension upon retirement.
“We must also negotiate with our employers to ensure that a chunk of our earnings go into payment of SSNIT contribution to enable our members earn meaningful pension”, he added.
In his earlier submission, the Deputy Secretary-General of the TUC, Mr. Joshua Ansah, urged workers to prioritise their pension the moment they are employed, stressing that “what has gone wrong in some people’s lives must not be repeated by us”.
About SSNIT
The Social Security and National Insurance Trust is a statutory public institution charged under the National Pensions Act, 2008 (Act 766 as amended by Act 883) with the administration of Ghana’s Basic National Social Security Scheme. Its mandate is to cater for the First-Tier of the Three-Tier Pension Scheme. Currently, the Trust is the largest non-bank financial institution in Ghana.
The SSNIT Scheme replaces part of the lost income of Members due to Old Age, Invalidity or upon the death of a Member, where nominated dependant (s) receive a lump sum payment. It also pays Emigration benefits to non-Ghanaian Members who are leaving Ghana permanently.
The SSNIT Pension Scheme has an active membership of over 1.7 million. In June 2022, the Trust paid a total of GH¢277.13 million to some 228,367 pensioners. The highest pension earner receives GH¢142,564.97 per month, while the lowest-earning pensioner gets GH¢300.00.
Source: Anchorghana
