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SSNIT Increases Monthly Salary Of Pensioners By 15%

SSNIT, in collaboration with NPRA, has implemented a 15% increase in monthly pension payments for 2024, in adherence to Section 80 of the National Pensions Act. This adjustment involves a fixed 10% rate and an additional GH¢79.10 for all pensioners on the SSNIT Pension Payroll as of December 31, 2023.

Chief Actuary Joseph Poku, speaking at the launch of the 2024 Pension Indexation Report, emphasized the legal necessity of indexation for reviewing benefits to ensure pensioners maintain a decent standard of living. Indexation serves to adjust pension payments, preserving the purchasing power of pensioners.

Explaining further, Poku highlighted that the increase applies to all pensioners on the SSNIT Pension Payroll as of December 31, 2023. This includes a Fixed Rate of 10% and a redistributed flat amount of GH¢79.10. The redistribution is a mechanism designed to support low-earning pensioners, aligning with the solidarity principle of social security.

Effective increases in pensions range from 10.05% for the highest-earning pensioner to 36.37% for the lowest-earning pensioner. For example, the highest-earning pensioner as of December 31, 2023, is projected to receive ¢186,777.58 per month in 2024, while the lowest-earning pensioner will see their monthly pension increase from ¢300 to ¢409.10.

The overall impact of the 15% indexation rate results in an additional pension expenditure of ¢697.64 million, bringing the total expenditure for pensioners on the Pension Payroll as of December 31, 2023, to ¢5,387.72 million in 2024. It’s important to note that this figure excludes the pension cost for new awards, reflecting benefits for retirees added to the pension payroll in 2024.

The statement projects a total benefit expenditure increase from ¢5,445.91 million in 2023 to GH¢7,023.43 million in 2024. Pensioners are scheduled to receive payments on the third Thursday of every month.

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