SSNIT increases pensions by 11 percent

The Social Security and National Security Insurance Trust (SSNIT) has announced an 11 percent increment in monthly pensions in the year 2020.

This is made up of 6.6 percent fixed-rate and a flat amount of GHs37.38 added to all pensioners salary which makes up the remaining 4.4 percent.

At a press briefing in Accra today, Thursday, the Chief Actuary at SSNIT, Stephen Yeboah, explained what informed the latest increment saying:

“The 2020 indexation rate was determined using the percentage change in the annual average Consumer Price Index for 2019, forecast of the 2020 national annual Price Inflation, ability of the fund to pay and the long term sustainability of the scheme among others.”

“The approved overall indexation rate of 11% for 2020 is higher than the forecasted inflation rate of 8.0% for 2020.The overall indexation amount was redistributed at a Fixed Rate of 6.6% and a Flat Amount of GH¢ 37.38for all Pensioners on the SSNIT Pension Payroll as at 31st December 2019.”

According to SSNIT, 70 percentof pensioners will receive 11 percent or more as an effective increase in their pensions whilst 98 percentof pensioners will receive an effective increase equal to or above the targeted inflation rate for 2020.

The redistribution is a mechanism applied to the indexation rate to cushion members on low pensions.

The minimum pension for all new Pensioners for 2020 will beGHs300.00.

Thenewindexation rate will increase the current pensions paid by GHs 243 million for the year 2020.

According to SSNIT, there were about 216,000 pensioners on the payroll in 2019 but this is expected hit 240, 000 in 2020.