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Business News of Thursday, 2 January 2014

Source: B&FT

SSNIT minimum monthly pension sees 100% jump

The Social Security and National Insurance Trust (SSNIT) has increased the minimum monthly pension from Gh¢100 to Gh¢200.00 – exactly 100 percent jump from the previous figure-- effective this year.

The new minimum pension amount is by now higher than the national monthly minimum wage of GHh141.48.

According to a statement released by SSNIT, no pensioner will receive a monthly pension amount less than Gh¢200 in 2014 and the move is applicable to both existing and new pensioners.

The statement also announced that the overall indexation rate has been adjusted by 20% leading to a 10 percent increase in all pensions and an additional flat amount of Gh¢9.62.

“The Social Security Pension Indexation, however, thrives on prudent investment and uninterrupted receipt of workers' contributions. This explains why the Trust continuously reevaluates its investment strategy,” the statement said.

In its quest to ensure sustainability of the Fund, the Board of Trustees and Management of the Trust said, they are embarking on an aggressive investment reorganisation. “The refocus is to enable the Trust exit from non-performing investments and also now, use portion of its investment to benefit contributors. We shall continue to count on the support of all stakeholders of the Trust to manage the fund in the supreme interest of all contributors” the release added.

“The Trust promises to manage the Fund to uphold its adequacy, equity and sustainability to assure contributors of their future security. This also means adopting all legal methods to collect all contributions and arrears.”

It will be recalled that, with the introduction of the National Pensions Act 2008, Act 766, the contribution period for a contributor to qualify for a benefit has been reduced from 20 to 15 years. This means contributors will qualify for benefits over a shorter period. Benefit payment has also been extended to 75 years.