The Director-General of SSNIT, Dr. John Ofori-Tenkorang has urged workers to inquire from their employers about their tier 2 providers since 5 percent of their contributions goes to them.
He explained that SSNIT manages only the first- tier of the Three-tier Scheme and pays monthly pensions but the Tier 2 and Tier 3 schemes are managed by Corporate Trustees who pay members a one-time lump sum.
According to him, contributing to all three-tiers go a long way to enhance one’s pension at retirement.
Dr. Ofori-Tenkorang however hinted that the SSNIT Scheme is not only for government workers alone but it cuts across the working sectors in the country.
He said the private sector constitutes about 63 percent of the contributors with the public sector constitutes 36 percent and was quick to add that a lot of people are not taking advantage of the Scheme.
Dr. Ofori-Tenkorang said these during TUC’s regional engagement with SSNIT to educate workers to understand the business and operations of SSNIT in Cape Coast.
He stated that even though workers contribute 11% of their basic salaries, the Scheme guarantees Members up to 60% of the average of the three years’ best salaries and pays them pension for life with annual increments.
The Director-General, encouraged participants to focus on the value the SSNIT Scheme offers Members and contribute on their correct salaries to enjoy enhanced pensions.
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Speaking to ATL FM on the side-lines, he said the two tiers pay out lump sum when it is due to the worker who is on pension but the SSNIT scheme is the only scheme in the country that takes the longevity risk.
“The SSNIT scheme is the only scheme that takes on the longevity risk and say that look no matter how long you live, we will pay you until the good Lord calls you home.”
He added that in order to have a meaningful pension people must also decide to make some types of long-term investments, “where they say this is an investment for my pension. It could be a shop; it could be a business that they have set up and so on. All that together is what is going to come together to give a meaningful pension but not the SSNIT Scheme alone.”
Dr. Ofori-Tenkorang also urged labour and employers to fashion out a way where the total emoluments of the worker who receives allowances get substantial take-home pension benefits.
The Deputy Secretary-General of the TUC, Mr. Joshua Ansah, commended SSNIT for the engagement and its openness in recent years.
He assured participants that representatives of Organised Labour on the SSNIT Board will keep their eyes on the Management of the Scheme to ensure pension funds are safe.
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Source: ANTHONY SASU AYISADU & ABIGAIL ADU/ATLFMNEWS
