Top 4 Types of Benefits to enjoy under SSNIT Scheme and their eligibility Criteria

13th April 2023

Ferdinand | EducationGhana | April 13| Top 4 Types of Benefits to enjoy under SSNIT Scheme and their eligibility Criteria

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 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 reduced pension whilst the 60-year-old receives 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 contributions 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 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

Contact the nearest SSNIT Branch with your Smart Card or Biometric Card, letter of retirement from your employer—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

INVALIDITY PENSION

To qualify for invalidity pension, the member must have contributed for 12 months in aggregate within the last 36 months preceding the incidence of the invalidity. He/ She must have also been certified by a Medical Board as being incapable of any normal gainful employment due to a permanent physical or mental disability.

The invalidity pension is paid monthly to such a person who has been confirmed and certified incapable of earning an income.

INVALIDITY PENSION

Qualifying Conditions

To qualify for invalidity pension:

You must have made a minimum of 12 months/within the last 36 months with the date of termination of appointment due to your invalidity as the reference point.
You must have been declared permanently invalid and incapable of any normal gainful employment:
By a qualified and recognized medical officer and
Certified by a Regional Medical Board on which a SSNIT Medical Officer is represented.

MEDICAL EXAMINATION

Report to the nearest SSNIT Branch in person or through your representative with a Medical Report from a recognised Medical Practitioner certifying you are invalid.
You will be required to appear before a Medical Board for examination where your invalidity is certified by the Medical Board.

HOW TO APPLY

Members must fulfill their student loan guarantorship obligation where applicable before applying for benefits.

Obtain Pension Application Forms from any SSNIT Branch.
Complete the application forms and submit to the SSNIT Branch as early as possible.
SSNIT will advise you to collect your monthly pension at a bank of your choice. Your bank account should be active and bear your name.

CALCULATION OF INVALIDITY PENSION

After you have been certified invalid you will be entitled to a pension as follows:

If you have made the minimum contributions of 180 months or 15 years or more, you will receive a “pension right” based on your contribution period and the average of the three (3) best years’ salary. Irrespective of not attaining the retirement age.
If you made a total of 12 months within the last 36 months even though you might have not satisfied the minimum contributions period, you will receive a monthly pension based on 37.5%”pension right “of the average of your best three years’ salary.

HOW LONG WILL PAYMENTS BE MADE?

You will receive your payments till death or when you recover and choose to continue contributing.

DEATH AND SURVIVORS’ LUMP SUM

Death and Survivors Lump sum is the benefit paid to nominated or eligible beneficiaries of a deceased contributor or pensioner. It can also be paid to persons upon an order by a court of competent jurisdiction. This benefit is paid when a member dies in active service or during retirement and has not attained the age of 72 years for those under PNDCL 247 and 75 years for those under the National Pensions Law, Act 766 respectively. The deceased member’s beneficiaries will be identified and all benefits due paid to the beneficiaries identified.

SURVIVOR’S LUMP SUM

This benefit is paid to dependants of members under the following conditions:

When the member dies before retirement; or
When a pensioner dies before attaining age 75.

CALCULATION OF SURVIVORS’ LUMP SUM

The benefit is computed as follows:

Where a member dies having made at least twelve months contributions within the last 36 months prior to the death of the member, a lump sum payment of the earned pension of the deceased member for a period of 15 years will be paid. The amount will be the present value discounted and paid to the member’s nominated dependants.
Where a member dies before making at least twelve months contribution within the last 36 months, a lump sum equal to the total contributions and interest shall be paid to the nominated dependants.
Where a pensioner dies before attaining age 75, a lump sum payment based on the present value of the unexpired pension of the member will be made to the beneficiaries.

HOW TO APPLY

Report the death of the member to the nearest SSNIT Branch with any of the following:

Primary Evidence:

Letter from the employer where available.
Affidavit from Chief of the Village or Town.
Police Report.

The following Secondary Evidence of death could be accepted in addition to the above-mentioned:

Posters
Burial Permit, etc.

On receiving information of the death of a member, SSNIT will identify the nominated dependant(s) and request them to apply for the benefit.
A dependant(s) may call at a SSNIT

Branch to collect, complete and submit an Application Form with the following:

The Membership Certificate of the deceased if available.
Birth Certificate of minors if applicable
A Bank Account Number that bears the dependant’s name – evidence of bank account details.
A photo identity card.

SSNIT will process the application and a lump sum payment will be made into the account.

EMIGRATION BENEFIT

Emigration benefit is a lump sum payment of benefit to non-Ghanaian members of the Social Security Scheme under Act 766 whose services are ended and are leaving Ghana permanently. Whether the member has reached the retiring age or not, whatever benefit is due him/her will be paid as lump sum in Ghanaian currency to the member.

To qualify for emigration benefits:

You must be a non-Ghanaian contributor.
You should be leaving Ghana Permanently.

HOW TO APPLY

Contact the nearest SSNIT office with the following:

a) A letter from your employers. (Evidence that you are emigrating)
b) A copy of your passport. (Personal Details Section)
c) Copy of your work and residence permit.
d) A confirmation of your nationality.
e) Evidence of Bank Account (in Ghana) that bears your name.
The Branch will provide you with an Emigration Lump Sum Benefit application form to be completed and endorsed by the Mission.
The completed forms should be submitted to the Branch office.
SSNIT will advise you to collect your lump sum payment at the bank.
In case a beneficiary wants someone to receive the benefit on His/her behalf, the following must be done:
Evidence that the beneficiary will be out of the country at the time of Payment.
Authority to Receive Benefit on Behalf of a Beneficiary Form must be properly completed and signed by the beneficiary.

Calculation of Emigration Benefit

If the member does not qualify for a Pension a return of contribution together with interest will be paid to him or her.
If the member qualifies for a Pension; the present value of the member’s pension shall be paid as a lump sum benefit.

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