Pension Matters Under National Pensions Act 2008 Act 766

PENSION MATTERS UNDER THE NEW ACT National Pensions Act 2008 Act 766

1.  If you were less than 55 years on 1st January 2010 the new act applies to you

1. If you retire today, SSNIT only guarantees you 60% of your best three years average salary as your monthly pension.

3.  The 60% is the maximum pension right that a pensioner can receive and nothing more.

4.  More to the point the 60% pension right is not automatic.

1. Your first 15 years (180 months) will earn you a pension right of 37.5%

2. Any additional year will earn you 1.125% to a maximum of 20 years

3. Your pension right for 35years will be 60%. Any further year will not count in your pension right

8.  Any worker who worked for less than 35 years will not earn 60%pension right and that means further less money

1. SSNIT also guarantee a pensioner 12 years monthly pension so that when a pensioner dies before the 72nd birthday a lump sum of the remaining years out of the 12 years is paid to beneficiaries.

10.  But if a pensioner does not die he will continue to receive his pension until he dies and nothing will be received by beneficiaries.

11.  Let us calculate pension for Mr Boahen who worked for 45 years and retired at age 60 with three best annual salaries of; ie the annual basic salary
First best GHc 39200
Second best GHc 37500
Third best GHc36200

1. Pension right for 15 years = 37.5%
   Pension right for additional year is 1.12% ×20 years maximum=22.5
   Therefore 37.5 +22.5=60%

13 . So GHc39200+37500+36200
=112900/3 = GHc 37633.33

14.  Multiply GHc37633.33 by Boahen pension right of 60% = GHc 22579.99

15.  To arrive at monthly pension divide GHc22579.99 by 12months = GHc1881.67 monthly pension

16.  Remember SSNIT only pays monthly pension and not lump sum under the new act.

17.  The lump sum will be the second tier which is private

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