The Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 10% for the year 2021.

In a public notice SSNIT said the increment means all pensioners on the SSNIT Pension Payroll as at December 31, 2020, will have their monthly pension increased by a fixed rate of 9.34% representing the annual average price inflation, plus a redistributed flat amount of GH¢6.47.

“Accordingly, Pensioners receiving the minimum pension of GHS300.00 as at 31st December, 2020 will have their monthly pensions increased to GH¢334.49, representing an effective increase of 11.5%,” the notice said.

“Redistribution is a mechanism applied to the indexation rate to cushion Members on low pensions in line with the solidarity principle of social security. Low pensions arise as a result of low basic salaries on which contributions were paid.

“The minimum pension for all new Pensioners effective January 2021 will be GH¢300.00. This means, pensioners whose computed monthly pensions fall below GH¢300.00 will be placed on this minimum”.

The notice also stated that all pensioners will be paid on the third Thursday of each month.

The increment was done by SSNIT in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766).

Source: Graphic Online