Pensions up by 15 %

Pensioners are to benefit from an average of 15 per cent increase in their pension with effect from next month, January.Image

A release issued yesterday by the Social Security and National Insurance Trust (SSNIT), and signed by K. Osei Bempong, Head of Public Affairs, said, "The increases range from 10.54 per cent for those at the upper end to 30.05 per cent for those at the lower end."

It said the review will cost SSNIT additional ?85.3 billion, adding "The total cost of pensions for 2006 is estimated at ?568.4 billion."

The release said SSNIT has since 1992 reviewed pensions based on the average increase in salaries of contributions during the previous year as provided under Social Security Law 1991, PNDC Law 247.

With the review, pensions will now range from ?182,000 to over ?80 million a month.

"The low levels of salaries on which some members contribute to the scheme, combined with the fact that some employers under declare the earnings of their employees, continue to impact adversely on the pensions paid," the release explained.

"In order to help SSNIT solve the problem of low minimum pension, the Trust would like to entreat employers not to under declare the earnings of their employees since such practices impact negatively on the pensions of such employees."

The release advised employees to be alert and not collude with their employers to under declare their earnings as happens in some cases.

"Employers are also advised to consolidate the basic earnings and allowances of their employees and to contribute on the consolidated earnings to ensure higher pensions at retirement.

"For SSNIT to sustain meaningful, guaranteed pensions, employers who pay contributions on behalf of contributors are entreated to contribute on at least the prevailing minimum wage."