Workers should update their SSNIT records - NPRA

Mr Laud Senanu, acting Chief Executive Officer of the National Pension Regulatory Authority (NPRA), has advised workers, especially those nearing retirement, to update their records with the SSNIT for prompt payment of their retirement benefits.

He said pensioners who updated their records a month or two before retirement did not have any delays in receiving their pension benefits saying, “it takes only one month for you to be paid your benefits if your records are updated before pension”.

Mr Senanu gave the advice in Tamale on Wednesday during an outreach programme organised by the NPRA to sensitise workers and pensioners on issues relating to their pension packages as well as to educate them on the new pension Act, Act 766 of 2008.

He said the major complaint that the NPRA received from pensioners was about issues relating to their second tier benefits and assured that those on the second tier scheme must contact SSNIT to claim their benefits since money had been released for that purpose.

He explained that the second tier comprised five per cent of workers contributions that was paid into a pension trust fund including an investment interest and that the amount to be collected by each individual depended on the salary and contributions before retirement.

Mr Senanu said the Government Pension Scheme was different from that of the SSNIT Pension Scheme and that workers with the Judicial Service, especially judges, and other workers of the various security agencies were under the Government Pension Scheme usually referred to as “Cap 30” while the remaining workers were under the SSNIT scheme.

He said over 100,000 pensioners were on the SSNIT Pension Scheme as of November 2013 and that many more pensioners were joining the retired workers group.

Mr Emmanuel Dagbanu, Education and Training Manager of NPRA, said the Three-Tier Pension Scheme started full implementation in 2010 with the objective of improving upon the Cap 30 to make life comfortable for pensioners.

He said the Three-Tier Pension Scheme comprised two mandatory schemes and the other being voluntary and that the third-tier was a personal pension scheme while the second and third tier would be privately managed by approved Trustee with the assistance of the Pension Fund Managers and Custodians.

He said 13.5 per cent of workers’ monthly basic salary was deducted for the scheme out of which 2.5 per cent was levied to the National Health Insurance Scheme for healthcare leaving 11 per cent for the Pension Scheme, which would be managed until retirement for the individual.