GhArticles.com Every News in Detail
In collaboration with the National Pensions Regulatory Authority (NPRA), the Social Security and National Insurance Trust (SSNIT) has implemented a 15% increase in monthly pensions for the year 2024, adhering to Section 80 of the National Pensions Act, 2008 (Act 766).
Pensioners on the SSNIT pension payroll as of December 31, 2023, will experience a fixed rate increase of 10%, coupled with a redistributed flat amount of ¢79.10, according to Chief Actuary Joseph Poku, who spoke at the launch of the 2024 Pension Indexation Report. Mr. Poku emphasized the Trust’s commitment to expanding the coverage of the national social security scheme to better serve future retirees.
The indexation, mandated by law, aims to review benefits to ensure pensioners can maintain a decent standard of living. Mr. Poku explained that this technique is utilized to adjust pension payments and preserve the purchasing power of pensioners.
Providing further details, he clarified that the effective increase in pensions would range from 10.05% for the highest-earning pensioner to 36.37% for the lowest-earning pensioner. As of December 31, 2023, the highest-earning pensioner is expected to receive ¢186,777.58 per month in 2024, while the lowest-earning pensioner’s monthly pension will rise from ¢300 to ¢409.10.
The statement from SSNIT outlined that the average monthly pension would increase from ¢1,527.29 in 2023 to ¢1,756.38 in 2024. The 15% indexation rate translates to an additional pension expenditure of ¢697.64 million. The total expenditure for pensioners on the Pension Payroll as of December 31, 2023, is projected to be ¢5,387.72 million in 2024.
It’s important to note that this total excludes pension costs for new awards, i.e., benefits for retirees added to the pension payroll in 2024. The overall benefit expenditure is expected to rise from ¢5,445.91 million in 2023 to GH¢7,023.43 million in 2024. Pensioners can anticipate receiving their payments on the third Thursday of every month, as highlighted in the statement.
