REVIEW OF PENSIONS FOR 2010

The Social Security and National Insurance Trust (SSNIT) has increased pensions-in-payment as follows:

A fixed increase of 11% over the December 2009 pension and an additional flat amount of GH¢13.25 per pensioner per month.

The increases take effect from January 2010 and will apply only to pensioners on the pension payroll as at 31^st December, 2009.

The overall increase in pensions is based on the average increase in the salaries of active contributors to the SSNIT Scheme in 2009.

The new minimum pension for 2010 for new pensioners will be GH¢30.62 per month an increase of 17.77% over the current minimum pension of GH¢26.00 per month.

SSNIT will in the year 2010, use an extra amount of GH¢31.2 million to improve the lot of the pensioners currently on the payroll.  The redistribution has been done in favour of pensioners on low benefits.

This review in pensions is in line with the National Pensions Act 2008, Act 766 which repealed PNDC Law 247 and provides for a review of pensions annually.  Accordingly, since 1992, SSNIT has reviewed pensions annually and the reviews have been based on the average increase in salaries of contributors during the previous year.

The critical factor which affects the level of pensions for newly retired contributors is the salary on which a member contributes to the social security scheme.  The other factors are the number of months of contribution to the scheme and the age at which a member retires for the old age pension.