SSNIT Pension Plan is very generous, Take advantage of it – SSNIT Boss

Ghana Education News| SSNIT Pension Plan is very generous, Take advantage of it – SSNIT boss , Dr. John Ofori-Tenkorang

SSNIT recipients receive less than GHS 1,000 per month, according to Dr. John Ofori-Tenkorang, the Director-General,  despite the shocking discovery that 53 percent of beneficiaries receive less than GHS 1,000 per month, he has described the SSNIT pension plan as really generous.

Dr. John Ofori-Tenkorang, Director-General of SSNIT, explained why the SSNIT pension scheme is so generous on the Citi Breakfast Show, which Ghanaeducation.org monitored

According to the National Pensions Regulatory Authority (NPRA), 82,000 pensioners receive monthly payments ranging from GHS 301 to GHS 499.

The pensions of moreover 124,000 people range from GH501 to GH The top pensioner, on the other hand, presently receives 129,000,000.

Speaking on the SSNIT Pension Plan, the Director-General said…

“I have done the maths and if you compare the accumulated value of the contributions people make and the present value of what they are expected to receive in their lifetime when they retire, the amount being paid in a pension far exceeds the accumulated value of the contributions [plus reasonable interest in the long haul]. So the scheme itself is very generous and good.”

“That is why we have to make sure that people take advantage of it, but we also have to make sure that in trying to get people to up their salaries, they do so in a manner that is gradual such that it does not game the scheme. You cannot contribute today GHS500 and tomorrow you say you want to contribute GHS10,000 because I’m going on pension soon”, Dr. John Ofori-Tenkorang said.

He also urged self-employed business owners to contribute towards their pensions. He went on to say that voluntary donors, such as self-employed individuals, As a result, people with registered companies generate revenue and pay the required tax obligations in the Those that are interested in obtaining insurance can do so a s a result, he urge all Ghanaians who own companies to insure with the SSNIT.

For its contributors and their dependents, SSNIT is tasked with restoring a portion of their lost income due to old age, disability, emigration, or death which are all benefits of the SSNIT Pension Plan.

According to the First Tier Scheme, a member’s pension is based on his or her Basic Salary (on which payments were paid) and the number of months he or she has

Section 80 of the National Pensions Act 2008 (Act 766) mandates that the indexed monthly pensions of SSNIT employees be increased by 10% by the year 2021.

ALSO READ: Ghana records 14 COVID-19 deaths in 48 hours

ALSO READ: How your SSNIT Retirement (Pension) Benefit is Calculated

A fixed rate of 9.34 percent representing yearly average price inflation, plus a redistributed flat sum of GHS6.47, was announced by SSNIT in conjunction with the National Pension Review Authority (NPRA) for all retirees on the SSNIT pension payroll as of December 31, 2020.