Ferdinand | EducationGhana | April 13| How to qualify and Apply for Old Age and Compulsory Retirement 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.
BENEFITS UNDER THE SSNIT SCHEME
There are four (4) types of benefits under the SSNIT scheme that members can enjoy depending on which contingency has occurred.
- Superannuation Pension/ Old Age Pension
- Invalidity Pension
- Survivor’s Lump sum.
- Emigration benefit
SUPERANNUATION PENSION/ OLD AGE PENSION
To qualify for an Old Age pension, the member must be at least 60 years and must have contributed a minimum of 180 months (15 years) under Act 766 and 240 months (20 years) under PNDCL 247.
The member who is 55 years but below 60 years receives a reduced pension whilst the 60-year-old receives a full pension.
OLD AGE/RETIREMENT PENSION
Qualifying Conditions
FULL PENSION
To qualify for Full Pension,
- You must be at least 60 years and
- You must have made a minimum contribution of 180 months (15 years) under act 766 and 240 months (20 years) under PNDCL 247.
BASIS FOR CALCULATION OF OLD AGE PENSION
- Age
- Average of Best 36 months / 3 years’ Salary
- Earned Pension Right – Rating for the number of months you have contributed to the Scheme.
You can earn a “pension right” between 37.5% and 60% depending on the number of months contributed at the time of retirement.
E.g. the minimum contribution of 180 months gives a “pension right” of 37.5%. Every additional month over the 180 months attracts an additional percentage of 0.09375% or 1.125% for One (1) year respectively.
TO CALCULATE YOUR PENSION
Multiply your best 36 months (3 years) average salary by your “pension right”.
EARNED PENSION RIGHT UNDER THE NATIONAL PENSION ACT, 2008 ACT 766
The Pension Right is 2.5% for each year of contribution for the first 15 years and 1.125% for every additional year up to a maximum of 60.0%.
| Years of Contribution | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| Pension Right (%) | 37.50 | 38.63 | 39.75 | 40.88 | 42.00 | 43.13 | 44.25 | 45.38 | 46.50 | 47.63 | 48.75 |
| Years of Contribution | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36& above a |
| Pension Right (%) | 49.88 | 51.00 | 52.13 | 53.25 | 54.38 | 55.50 | 56.63 | 57.75 | 58.88 | 60.00 | 60.00 |
REDUCED PENSION – EARLY RETIREMENT
To qualify for Reduced Pension,
- You must be 55 years and above but below 60 years of age; and
- You must have made a minimum contribution of 180 months (15 years) under act 766 and 240 months (20 years) under PNDCL 247.
EARLY RETIREMENT – AGE REDUCTION
For early retirement reduction with a factor from 55 years and below 60 years, the pension is computed as follows:
| AGE (Years) | 55 | 56 | 57 | 58 | 59 |
| % of Full Pension | 60% | 67.5% | 75% | 82.5% | 90% |
REFUND OF CONTRIBUTIONS
In the event that you do not qualify for Old Age Pension when you retire either compulsorily or voluntarily; your contributions will be refunded to you with interest.
QUALIFYING CONDITIONS
- You must be between 55 and 60 years.
- Where you have not made the minimum aggregate contribution period of 180 months, you will be entitled to a lump sum payment of your total contributions with interest.
HOW TO APPLY FOR YOUR SNNIT BENEFITS
- Contact the nearest SSNIT Branch with your Smart Card or Biometric Card, a letter of retirement from your employer—is not mandatory.
- The SSNIT Branch will then provide you with a Pension Application Form for completion.
- Submit your completed Form to the SSNIT Branch.
- Provide an active bank account number that bears your name—evidence of bank account details.
- SSNIT will advise you to collect your monthly pension at your bank
Pensioners after attaining the age of 72 years for those under PNDCL 247 and 75 years for those under Act 766 would be required to go through the identification process yearly.
HOW LONG WILL YOUR PENSION PAYMENT LAST?
Until Death
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