The Director-General of Social Security and National Insurance Trust, SSNIT Dr. John Ofori-Tenkorang has announced that the Trust would from first January 2020 cease the payment of lump sums to workers who turn 60 years.
The disclosure is under PNDC law 247, so contributors would now have to turn to their Fund Managers for their second-tier and their lump sum.
The questions is, are the affected contributors safe and how transparent would the managers be?
Labour Expert, Seth Abloso
Labour Expert, Seth Abloso told GBC’s George Ankrah that there is certainly a bone of contention with what SSNIT intends to do. But there must be transparency in order not to short change workers.
Mr. Abloso also called on SSNIT to cut out its over-spending and stick to its core mandate so that it can serve the welfare needs of workers.
BACKGROUND
Workers who turn 60 years from January 1, 2020, will no longer receive lump-sum payments from the Social Security and National Insurance Trust (SSNIT), under PNDC law 247.
Such contributors will now have to turn to the fund managers of their second-tier contribution for lump sums.
The Director-General of SSNIT, Dr John Ofori-Tenkorang, who disclosed this at a breakfast meeting with some employers in Accra yesterday (October 24), said in addition to the lump sum from the second tier, SSNIT would pay a lump sum known as past credit accruing from earlier contributions by such workers before the coming into force of the National Pensions Act, 2008 ACT [766], which introduced the tier two.
Even though the law was passed in 2008, it was operationalised in 2010.
In addition to that, SSNIT will also pay a monthly allowance to such workers.
