Sometimes SSNIT has no option other than to pay an invalidity pension to a contributor. There are varied reasons why some SSNIT contributors may opt for this kind of early retirement and pension.
The factor that may contribute to reaching this decision may be health-related in which case the contributor may opt for an invalidity pension
For instance, someone who has been declared incapable of actively working by a doctor through a credible medical report may qualify to apply for SSNIT’s reduced or early pension.
And or must have contributed a minimum of 180 months, which is equivalent to 15 years of contribution to SSNIT.
Per SSNIT’s qualifying rules, the applicant must have been
1. Declared permanently invalid and incapable of securing any gainful employment by a certified Medical Practitioner and the SSNIT Medical Board.
2. Declared permanently invalid and incapable of securing any gainful employment by a certified Medical Practitioner and the SSNIT Medical Board.
ALSO READ: How your SSNIT Retirement (Pension) Benefit is Calculated
How is an invalidity pension calculated?
You would be entitled to monthly Pension payments if the SSNIT Medical Board certifies you as
invalid. The Pension amount shall be based on the following:
The Pension amount shall be based on the following:
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Under PNDCL 247: PENSION RIGHT = 0.50 + [Total number of months of contributions – 240] x 0.00125
Under Act 766: PENSION RIGHT = 0.375 + [Total number of months of contributions – 180] x 0.0009375
Where the member does not satisfy the minimum contribution period of 180 months the
member shall be given a pension right of 37.5% or 0.375 (i.e. the minimum pension right).
To determine the average of your three best years’ annual salaries for SSNIT invalidity pension:
(i) Select the three best years’ annual salaries from your SSNIT statement of account
(ii) Calculate the average of the three (3) best years’ annual salaries using the formula
PENSION RIGHT = 0.375 + [Total number of months of contributions – 180] x 0.0009375
PENSION RIGHT = 0.50 + [Total number of months of contributions – 240] x 0.00125
Average of three best years annual salaries =
| [Salary1]: [Salary2]: [Salary3]: | The highest annual salary The second highest annual salary The third highest annual salary |
Let us look at a member who is 37 years old and is declared invalid and must opt for a SSNIT invalidity pension
A member aged 37 years 5 months is declared invalid by the SSNIT Medical Board. The member has
contributed for a period of 140 months with the following three best annual salaries of GH₵60,000,
GH₵58,000 and GH₵44,000. Calculate the Invalidity Monthly Pension.
(i) Under PNDCL 247
(ii) Under Act 766
it is being assumed that the member has already contributed for at least 12 months within the last 36 months prior to the incidence of invalidity.
STEP 1: Calculate the Pension Right Under PNDCL 247
Where the total number of months of contributions is less than 240 Months, the member is given a Pension Right of 50%.
A Total number of months of contributions of 140 (under PNDCL 247) would give a pension right of 50%
SSNIT invalidity pension Under Act 766
Where the total number of contributions is less than 180 Months, the member is given a Pension Right of 37.50%.
A Total number of months of contributions of 140 (under Act 766) would give a pension right of 37.5%
| STEP 2: | Determine the three best years’ annual salaries The three best years’ annual salaries given are: |
| [Salary1]: [Salary2]: [Salary3]: | GH₵60,000 GH₵58,000 GH₵44,000 |
The average of the three best years’ annual salaries is computed as:
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