Ferdinand | EducationGhana | April 13| How to Qualify and Apply for Invalidity Pension Benefits under SSNIT

The Social Security and National Insurance Trust (SSNIT) is a statutory public Trust charged under the National Pensions Act, 2008 Act 766 with the administration of Ghana’s Basic National Social Security Scheme.

Its mandate is to cater for the First Tier of the Three-Tier Pension Scheme. The Trust is currently the largest non-bank financial institution in Ghana.

The primary responsibility of the Trust is to replace part of the lost income of workers in Ghana due to Old Age, Invalidity or Death of a member where dependants receive lump sum payment.

It is also responsible for the payment of Emigration benefits to a non-Ghanaian member who is leaving Ghana permanently.

The Pension Scheme as administered by SSNIT has an active membership of over 1.6 million as of January 2021 with over 226,000 pensioners who regularly receive their monthly pensions from SSNIT.

What is an invalidity Pension?

Invalidity Pension is a monthly cash benefit paid to a member of the Scheme who can no longer work due to a disease, an illness or a disablement of a permanent nature.

 How do I qualify for an Invalidity Pension?

You qualify to apply for an invalidity Pension under the following conditions:
Where you have been declared permanently invalid and incapable of securing any gainful
employment by a certified Medical Practitioner and the SSNIT Medical Board.

You have made a minimum contribution to the Scheme for a period of not less than 12 months within the last 36 months prior to the incidence of invalidity.

Note: A member of the scheme can qualify for an invalidity pension at any age.

 

How do I apply for an invalidity Pension?

1. Report to the nearest SSNIT Branch in person or through your representative with a Medical Report from a recognized Medical Practitioner certifying the invalidity condition.

2. The SSNIT Branch will provide you with a Pension Application Form (SS4) for completion.
   Complete the forms and attach two (2) recent passport-size photographs.

3. Provide an active bank account number that bears your name as pertains to the SSNIT records.

4. Submit the completed Forms, the Photographs and the Medical Report to the SSNIT Branch.
   The Branch shall schedule an appointment for you to appear before an SSNIT Medical Board for a medical examination.

 

How is an invalidity pension calculated?

You would be entitled to monthly Pension payments if the SSNIT Medical Board certifies you as invalid.
The Pension amount shall be based on the following:

(a) Your Pension Right – [i.e. Total number of months you have contributed to the scheme during your
working life (whether there are breaks in your employment or not) prior to the incidence of
invalidity].
(b) Average of your 3 best years’ annual salaries

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General Procedure for Computing the Monthly Pension

Follow the four-step procedure to calculate the Monthly Pension

STEP 1: Compute the Pension Right

Under PNDCL 247

Where the member has contributed for a period of not less than 240 months, the member
shall be entitled to a pension right (or pension credit) equivalent to that of the Old-age
retirement pension.

PENSION RIGHT = 0.50 + [Total number of months of contributions – 240] x 0.00125

Where the member does not satisfy the minimum contribution period of 240 months the
member shall be given a pension right of 50% or 0.50 (i.e. the minimum pension right).

Under Act 766

Where the member has contributed for a period of not less than 180 months, the member
shall be entitled to a pension right (or pension credit) equivalent to that of the Old-age
retirement pension.

PENSION RIGHT = 0.375 + [Total number of months of contributions – 180] x 0.0009375

Where the member does not satisfy the minimum contribution period of 180 months the
member shall be given a pension right of 37.5% or 0.375 (i.e. the minimum pension right).

Note: In all the cases, it is assumed that the member has already contributed for at
least 12 months within the last 36 months prior to the incidence of invalidity.

 

STEP 2: Determine the average of three best years’ annual salary

To determine the average of your three best years’ annual salaries:

(i) Select the three best years’ annual salaries from your SSNIT statement of account

[Salary1]: The highest annual salary
[Salary2]: The second-highest annual salary
[Salary3]: The third highest annual salary

(ii) Calculate the average of the three (3) best years’ annual salaries using the formula

PENSION RIGHT = 0.375 + [Total number of months of contributions – 180] x 0.0009375

PENSION RIGHT = 0.50 + [Total number of months of contributions – 240] x 0.00125

Average of three best years’ annual salaries = Salary 1+ Salary 2 + Salary 3/3

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STEP 3: Compute the Annual Pension

Multiply the Average of the three best years’ annual salaries by the Pension Right to obtain the Annual Pension.

Annual Pension = Average of three best years’ annual salaries X Pension Right

STEP 4: Determine the Monthly Pension

Divide the Annual Pension by 12 to obtain the Monthly Pension.

 

Monthly Pension = Annual Salary/12

 

 

How is the Invalidity Pension Paid?

1. The monthly pension is paid through the member’s designated bank which he/she wishes to receive his/her pension benefits.

2. The member must submit his/her bank account number and a photocopy of his/her bank details from the Cheque book or a copy of a bank statement bearing the account number or a copy of the bank statement bearing the account number upon filing the application form.

3. Upon approval of the claim, SSNIT will inform the member when to withdraw the benefit from the bank.

Note: Members who take an invalidity pension also qualify for a 25% lump sum under PNDCL 247.

How long do I receive the Invalidity Monthly Pension?

You will continue to receive Invalidity Monthly Pension for as long as you remain incapable of work.

The monthly Pension payments will stop or be suspended if you recover and resumes
employment. In that case, you may continue to contribute to the scheme and earn pension rights to add up to the earlier credits (i.e. the earlier pension right you earned prior to the incidence of the invalidity) until you finally retire.

Do payments continue after death?

The pension stops when an invalidity pensioner dies.

However; under PNDCL 247, If the pensioner dies, before reaching the age of 72 years, the remaining monthly pension payments up to age 72 years is commuted to a lump sum (cash).

Under Act 766
If the pensioner dies, before reaching the age of 75 years, the remaining monthly pension
payments up to the age of 75 years are commuted to a lump sum (cash).

The commuted cash amount is paid as a lump sum (one-time payment) to the pensioner’s
beneficiaries.

 

You can also apply for the Survivors Benefit HERE

 

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