The Social Security and National Insurance Trust (SSNIT), has announced the 2021 Pension indexation.
The announcement was contained in a statement issued today, January 7, 2021 and copied to the www.theheraldonline.com.
According to the statement "The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA) and in accordance with Section 80 of the National Pensions Act 2008 (Act 766), has indexed monthly pensions upwards by 10percent for the year
The statement outlined the increment, which shall be implemented as follows:
"All Pensioners on the SSNIT Pension Payroll as at 31st December, 2020 will have their
monthly pension increased by a Fixed Rate of 9.34percent 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 11.5percent.
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 statement further reminded, "Pensioners will be paid on the third Thursday of each month".
"The Management of SSNIT wishes its cherished Pensioners a fulfilling New Year", the statement concluded.