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02.05.2019 Business & Finance

SSNIT Pressured To Explain Pension Payouts

SSNIT Pressured To Explain Pension Payouts
LISTEN MAY 2, 2019

“We are not only interested in the parameters. But what and what constitutes them so that if I am a contributor and I know I must do something more to get me what I can live on and not just to survive,” Gener Secretary of ICU, Solomon Kotei said.

Currently, the minimum pension income a pensioner can earn is GH¢303.6. This implies that no matter how low a worker earns as salary is, their monthly pension payout when they retire cannot be less than GH¢ 303.6.

Mr Kotei said for about two years, Organised Labour has been pushing for clarity from SSNIT on how pensions payout are computed.

He said the theme for this year’s May Day celebration , Sustainable Pension for all: The Role of Social Partners , reflects Labour’s desire to change the incidence of meagre payouts to pensioners.

Austin Gamey, a labour expert, also said on the show that the meagre monthly payout to pensioners demonstrates a major challenge.

“The spirit behind the pensions scheme has been thrown overboard,” he said.

Meanwhile, during a pre-May Day forum presentation last week, Director-General of SSNIT said the law on Ghana’s pensions scheme must be reviewed.

Dr John Ofori Tenkorang noted that there should be considerations to pay beneficiaries based on the average of their total active years instead of the average of their best three years.

“SSNIT is committed to paying all legitimate claims that come before it. I must state unequivocally that SSNIT is not cheating pensioners. It is not in my interest or any SSNIT employee not to pay the legitimate claim to any pensioners.”

“And we must also have some conversation on whether it is appropriate to just pay dividends based on only best three years of contributions. In other jurisdictions like the UK, the lifetime average is what is used,” he said.

Watch more from Wednesday’s PM Express below.