The Social Security and National Insurance Trust (SSNIT), in cooperation with the National Pensions Regulatory Authority (NPRA), has increased monthly pensions by 15% for the year 2024.
As a result, retirees’ monthly payments have increased by 15%.
This is consistent with Section 80 of the National Pensions Act, 2008 (Act 766).
SSNIT will enhance the monthly pension of all pensioners on its payroll by a fixed rate of 10%, along with a dispersed flat sum of ¢79.10.
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Speaking at the publication of the 2024 Pension Indexation Report, Chief Actuary Joseph Poku stated that the Trust is focused on increasing and deepening coverage of the fundamental national social security program to assist future retirees.
According to him, indexation is a legal necessity aimed at assessing payments and assisting seniors in living respectable lives.
“The indexation is a technique we use to adjust pensions payment to help maintain the purchasing power of pensioners”, Mr. Poku said.
He stated that as of December 31, 2023, all pensioners on the SSNIT Pension Payroll will get a monthly pension increase of 10% plus a redistributed flat sum of GH¢79.10.
“Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. The SSNIT Scheme, like any other defined benefit scheme, pays pensions which mirror the earned salaries on which contributions were paid”.
He said that the effective rise in pensions will range from 10.05% for the highest-earning retiree to 36.37% for the lowest-earning pensioner.
“The highest-earning pensioner as of December 31, 2023 will receive ¢186,777.58 per month in 2024. The lowest-earning pensioner as of December 31, 2023 will have the monthly pension increased from ¢300 to ¢409.10 in 2024”, an additional statement from SSNIT said.
The announcement stated that the average monthly pension will grow from ¢1,527.29 in 2023 to ¢1,756.38 in 2024.
“The 15% indexation rate will result in an additional pension expenditure of ¢697.64 million. The total expenditure in 2024 for pensioners on the Pension Payroll as at 31st December 2023 will be ¢5,387.72 million”.
“The ¢5,387.72 million excludes pension cost for new awards i.e. the benefits to be paid to retirees who are added to the pension payroll in 2024. The total benefit expenditure is projected to increase from ¢5,445.91 million in 2023 to GH¢ 7,023.43 million in 2024. Pensioners are paid on the third Thursday of every month”, the statement concluded.
