In line with Section 80 of the National Pensions Act, 2008, (Act 766), the Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has increased monthly pension payments by 15% for 2024.
Chief Actuary at SSNIT, Joseph Poku explained that all pensioners on its pension payroll will have a Fixed Rate of 10% in addition to a redistributed flat amount of GH¢79.10.
He said the indexation is a legal requirement that aims at reviewing the benefits to help pensioners live decent lives.
“The indexation is a technique we use to adjust pension payments to help maintain the purchasing power of pensioners,” he said while speaking at the launch of the 2024 Pension Indexation Report.
“Redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security. The SSNIT Scheme, like any other defined benefit scheme, pays pensions which mirror the earned salaries on which contributions were paid,” he added.
Poku also stated that the effective increase in pensions would range from 10.05% for the highest-earning pensioner to 36.37% for the lowest-earning pensioner.
“Accordingly, the highest-earning pensioner as of December 31, 2023 will receive GH¢186,777.58 per month in 2024. The lowest-earning pensioner as of December 31, 2023 will have the monthly pension increased from GH¢300 to GH¢409.10 in 2024,” a statement from SSNIT said.
The average monthly pension will increase from GH¢1,527.29 in 2023 to GH¢1,756.38 in 2024.
“The 15% indexation rate will result in an additional pension expenditure of GH¢697.64 million. The total expenditure in 2024 for pensioners on the Pension Payroll as of 31st December 2023 will be GH¢5,387.72 million.
“The GH¢5,387.72 million excludes pension cost for new awards i.e. the benefits to be paid to retirees who are added to the pension payroll in 2024. The total benefit expenditure is projected to increase from GH¢¢5,445.91 million in 2023 to GH¢ 7,023.43 million in 2024. Pensioners are paid on the third Thursday of every month,” the statement concluded.
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SSNIT Pensions House