The Social Security and National Insurance Trust (SSNIT) has announced an increase of eleven per cent in pension payments. The new Pension rate will mean Pensioners on minimum pension of Three Hundred Cedis will now receive about Three Hundred Fifty-Seven Cedis per month. The Chief Actuary of SSNIT, Stephen Yeboah said the 2020 pension increment was necessary to maintain the purchasing power of pensioners.
The increment is an annual practice in consultation with the National Pensions Regulatory Authority and in accordance with Section 80 of the National Pensions Act. The rate was determined using the forecast of the 2020 National Annual Price Inflation, ability of the fund to pay and the long-term sustainability of the Scheme.
According to the Chief Actuary, Stephen Yeboah, the increment is to cushion contributors on low pensions in line with the actual principle of social security.
Providing more clarity on the new indexation rate to pensioners, the Director-General of SSNIT, Dr John Ofori Tenkorang said the new pension indexation would mean the lowest pension earner will see his pension ultimately rise to 19 per cent.
Dr Tenkorang said the new pension indexation will cost SSNIT ¢243 million to be able to pay the 11 per cent overall indexation rate.
