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Business News of Monday, 25 March 2019

Source: www.ghanaweb.com

Your contributions are safe - SSNIT to contributors

The Management of Social Security and National Insurance Trust (SSNIT) has assured all contributors that their contributions are safe and its benefits are therefore calculated in accordance with the law.

According to them, "SSNIT computes benefits accurately in accordance with (PNDCL 247, Act 766 and Act 883), and on sound financial and actuarial principles and practices."

Dr Justice Yankson, the General Secretary of the Ghana Medical Association in a report by both Ghanaian Times and Daily Graphic was quoted to have said SSNIT is misinterpreting the Pension Law and paying low premiums to contributors which has rendered pensioners worse off.

“The framers of the law indicated that the lump sum is calculated as 25 per cent of monthly pensions for 144 months whereas SSNIT calculates it as 25 per cent of monthly pensions for 83 months instead of 144. The difference between the application and non-application of annuity on lump sum equals 41.9 per cent,” Dr Yankson told journalists.

But SSNIT in a statement copied to GhanaWeb stated: "SSNIT has not changed the mode of computation of benefits since these laws came into effect."

It, however, noted that, “SSNIT is regulated by the National Pension Regulatory Authority (NPRA), operates a transparent administration and is governed by a competent Board of Trustees which includes four (4) members of organised labour, two (2) representatives from Ghana Employers’ Association, one (1) representative from National Pensioners Association, one (1) representative from the Ministry of Finance, a representative from the Security Services, a Board Chairman, a Director-General and two (2) Government appointees,”

Find below the full statement

RE: ORGANISED LABOUR ACCUSES SSNIT OF MISINTERPRETING PENSION LAW

The Management of Social Security and National Insurance Trust (SSNIT) has taken notice of publications in the 20th and 21st March 2019 editions of the Ghanaian Times and Daily Graphic newspapers and carried by different media outlets.

SSNIT wishes to respond as follows:

1. SSNIT computes benefits accurately in accordance with (PNDCL 247, Act 766 and Act 883), and on sound financial and actuarial principles and practices.

2. SSNIT has not changed the mode of computation of benefits since these laws came into effect.

3. SSNIT, which is regulated by the National Pension Regulatory Authority
(NPRA), operates a transparent administration and is governed by a competent Board of Trustees which includes four (4) members of organised labour, two (2) representatives from Ghana Employers’ Association, one (1) representative from National Pensioners Association, one (1) representative from the Ministry of Finance, a representative from the Security Services, a Board Chairman, a Director-General and two (2) Government appointees.

4. The Management of SSNIT, since last year, has been engaging organised labour on the matters raised in relation to the computations of benefits.

5. The issues in reference have been referred to the NPRA by both SSNIT and organized labour for their review and directives.

6. SSNIT awaits the pronouncements of the NPRA on these issues and would be guided by the Regulator’s directives.

We take this opportunity to assure all SSNIT contributors and pensioners that their contributions and pensions are safe and their benefits are calculated in accordance with the law.

Issued by the SSNIT Corporate Affairs Department.