The Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 10 per cent for the year 2021.
The adjustment, done in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766), means that all pensioners on the SSNIT Pension Payroll as of December 31, 2020 will have their monthly pension increased by a fixed rate of 9.34 per cent.
This represents the annual average price inflation plus a redistributed flat amount of GH¢6.47.
A release copied to the Daily Graphic in Accra yesterday, said: “Accordingly, pensioners receiving the minimum pension of GH¢300 as at 31st December, 2020 will have their monthly pensions increased to GH¢334.49, representing an effective increase of 11.5 per cent.
Redistribution is a mechanism
It explained that the redistribution is a mechanism applied to the indexation rate to cushion members on low pensions in line with the solidarity principle of social security.
The release noted that “Low pensions arise as a result of low basic salaries on which contributions were paid.”
Meanwhile, it said the minimum pension for all new pensioners effective January 2021 will be GH¢300.
“This means pensioners whose computed monthly pensions fall below GH¢300 will be placed on this minimum,” the release said.