In an exciting development for pensioners, the Social Security and National Insurance Trust (SSNIT) has announced a 15% boost in monthly pension payments, aligning with the 2024 indexation rate.
This uplifting news, mandated by Section 80 of the National Pensions Act, 2008 (Act 766), promises significant benefits to all valid pensioners on the SSNIT pension payroll as of December 2023’s conclusion.
Under the freshly revised rates, pensioners are set to experience a noteworthy monthly increase, consisting of a fixed rate of 10% and an additional redistributed flat amount of ¢79.10.
What is particularly heartening is that even the minimum-wage pensioner will witness a substantial rise, receiving GHC409.10 monthly. This marks an impressive 36.37% increase compared to the minimum pension payment in the preceding year.
At the other end of the spectrum, the highest-earning pensioner is poised to receive a monthly pension of GH¢186,777.58 post-adjustment. These revised rates have been meticulously crafted to strike a delicate balance between addressing the mounting cost of living and sustaining the integrity of the pension scheme.
Joseph Poku, the Chief Actuary at SSNIT, shed light on the collaborative effort with the National Pensions Regulatory Authority (NPRA) that resulted in the determination of the 15% increment. The primary goal is to shield pensioners from the ripple effects of escalating living expenses, all the while ensuring the enduring viability of the scheme.
Speaking passionately at the launch of the 2024 Pension Indexation Report, Joseph Poku underscored that this adjustment was a proactive response to a forecasted 20% wage inflation for active contributors and an anticipated inflation rate of 23.16% for the year 2024, as estimated by SSNIT.
In the wake of this commendable increase, the average monthly pension is set to ascend from ¢1,527.29 in 2023 to ¢1,756.38 in 2024. This 15% indexation rate translates into an additional pension expenditure of ¢697.64 million. As we look ahead, the total expenditure for pensioners on the Pension Payroll as of December 31, 2023, is projected to reach ¢5,387.72 million in the upcoming year.
Published By: Justice Donkoh | GESHub.org
