The Social Security and National Insurance Trust (SSNIT) has increased monthly pensions by 15 percent for 2024.
This follows approval from sector regulator the National Pensions Regulatory Authority (NPRA), per Section 80 of the National Pensions Act, 2008 (Act 766).
At a media briefing in Accra, SSNIT’s Director-General, Dr. John Ofori-Tenkorang, said the hike factors-in 20 percent projected wage inflation for active contributors in 2024; and considers the scheme’s liquidity, forecast of 23.16 percent consumer inflation, and long-term sustainability.
Specifying the increment’s implementation, he said: “All pensioners on the SSNIT Pension Payroll as at 31st December 2023 will have their monthly pension increased by a fixed rate of 10 percent plus a redistributed flat amount of GH¢79.10.
“Redistribution cushions low-earning pensioners per the solidarity principle of social security,” he noted. “The SSNIT Scheme pays pensions mirroring earned salaries on which contributions were paid.
“The effective increase ranges from 10.05 percent for the highest-earning pensioner to 36.37 percent for the lowest-earning,” he added.
Accordingly, the highest-earning pensioner as at 31st December 2023 will receive GH¢186,777.58 per month in 2024. The lowest-earning pensioner as at 31st December 2023 will have their monthly pension increased from GH¢300 to GH¢409.10 in 2024. The average monthly pension will increase from GH¢1,527.29 in 2023 to GH¢1,756.38 in 2024.
The 15 percent indexation rate will result in an additional pension expenditure of GH¢697.64million. The total expenditure in 2024 for pensioners on the pension payroll as at 31st December 2023 will be approximately GH¢5.39billion. This excludes pension costs for new awards; that is, the benefits to be paid retirees who are added to the pension payroll in 2024. The total benefit expenditure is projected to increase from GH¢5.45billion in 2023 to GH¢7.02billion in 2024. Pensioners are paid on the third Thursday of every month.
“Management of the trust will continue working hard to guarantee positive annual indexation for pensioners bearing in mind the Scheme’s long-term sustainability,” Dr. Tenkorang assured.
Industry advocates argue the increment falls short. In 2023, the Africa Centre for Retirement Research projected pensions could rise by about 25 percent to better-match the average of 40 percent inflation at the end of 2023.
