Media schooled on new SSNIT Pension Scheme

MEDIA PERSONNEL in the Kumasi Metropolis have been educated on the new Pension Scheme at a day's workshop organized by the Social Security and National Insurance Trust (SSNIT), last Thursday in Kumasi.

The National Pensions Act 766 of 2008, which was passed by Parliament and received presidential Assent on December 4, 2008 and Gazette Notification on December 12th 2010, took effect from January 1, this year.

Mr. Enoch Acheampong, the Ashanti Regional Area Manager of SSNIT,stated that the Act provides for Pension Reform in Ghana by the introduction of a contributory three-tier Pension Scheme.

He named the three tier scheme as First Tier mandatory defined to benefit the Basic National Social Security Scheme, Second Tier mandatory fully funded and privately managed occupational pension scheme and the Third Tier voluntary fully funded voluntary Provident Fund and Personal Pension scheme.

Mr. Acheampong explained that the creation of the Three-Tier contributory systems will replace the current parallel SSNIT Pension Scheme and will bring about unification of all existing public schemes within a period of five years from the commencement of the Act. He expatiated that under the new Act, workers are to make mandatory contributions of 5.5% whilst employers contribute 13% totaling 18.5%.

The SNIT Manager, however, indicated that since the Third Tier is voluntary, no rate is prescribed. He emphasized that a minimum contribution shall be 18.5% of approved monthly equivalent of the national daily minimum wage, and failure of an employer to remit the contributions constitute an offence.

The Area Manager mentioned that the minimum entry age of the scheme is 15 years, whereas the maximum entry age is 45 years, and persons of 55 years and above are exempted from the scheme, but could opt to contribute. The exempted members according to him shall contribute by paying the old 17.5% until the worker retires.