The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has increased monthly pensions upwards by 25 per cent for the year 2023.
This is in line with Section 80 of the National Pensions Act 2008 (Act 766).
Last year, the increment was fixed at 10 per cent.
Mr Joseph Poku, the Chief Actuary at SSNIT, explaining the mechanisms at a press briefing, said all pensioners on the SSNIT Pension Payroll as of December 31, 2022, would have their monthly pension increased by a fixed rate of 19 per cent plus a redistributed flat amount of GH¢73.58.
He said the redistribution was a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security.
He said the review was informed by wage inflation, the consumer price index for the year, liquidity, and long sustainability.
He said the effective increase in pensions would therefore range from 19.05 per cent for the highest-earning pensioner to 43.53 per cent for the lowest-earning pensioner.
“Accordingly, the highest-earning pensioner as of December 31, 2022, will receive GHS 169,725.89 per month in 2023,” he added.
Meanwhile, the lowest-earning pensioner as of December 31, 2022, will have his / her monthly pension increased from GH¢ 300 to GH¢ 430.58 in 2023.
Dr John Ofori-Tenkorang, the Director-General of SSNIT, said last year, the Scheme was able to register 214, 000 new members.
He said last year, the Scheme disbursed GHS4 billion in benefits to pensioners and they were committed to paying benefits promptly to all beneficiaries on their payroll.
Mr Stephen Boakye, the General-Secretary of the National Pensioners Association, said the Association welcomes the new increment.
“We never thought of getting a 25 per cent increment from the previous 10 per cent received during the COVID-19,” he said.
He commended the leadership of SSNIT for the increment, saying it was a good decision.
He said they would be reaching out to employers because most of them had not been paying their employees’ pension deductions and this could affect them after retirement.
“We call on all workers to take this exercise serious and add up their pension contribution if the need is to be able to benefit soon.” He said.