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29.12.2005 Business & Finance

SSNIT Increases Pension By 20%

By Ghanaian Times
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THE Social Security and National Insurance Trust (SSNIT) has increased pensions by an average of 20 per cent with effect from January 2006.

With the review, pensions will now range from ¢150,000 to more than ¢70 million a month.

The increases range from 15 per cent for those at the upper end, to 30.8 per cent for those at the lower end.

The average increase for 2005 was 27.4 per cent.

A statement from SSNIT, signed by Rev. Kweku Osei Bimpong, Head of Public Affairs, said "the review is in line with the Social Security Law, PNDC Law 247 which provides for a review of pensions annually.

It said an average amount of ¢19,957,31 and 15 per cent increase on an existing pension will be given in line with the solidarity principle of social insurance.

The statement said the general salary levels, combined with the under declaration of the earnings of employees by some employers continue to impact adversely on the pensions paid to pensioners.

"On record, there are contributors who declare salaries far below the prevailing minimum wage," it said.

"In order to solve the problem of low minimum pension, the trust entreat employers not to under declare the earnings of their employees since such practices impact negatively on their pensions," it added.

The statement urged employees to be alert and not collude with their employers to under declare their salaries.

It also asked employers to consolidate the basic earnings and allowances of their employees and contribute towards their consolidated earnings to ensure higher pensions at retirement.

The statement said for SSNIT to sustain meaningful guaranteed pensions, employers who pay contributions on behalf of contributors would be expected to contribute the prevailing minimum wage.

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