The Social Security and National Insurance Trust(SSNIT) has said it migrated over four hundred thousand workers on its old scheme to cushion them.
All pension contributors who turned 50 years and above as of January 2010, when the new pensions law came into force, have been put on the old pension scheme under PNDC Law 247.
[contextly_sidebar id=”cuV6w2WrAAKdV9v3kexsB8MBwMBD1xmY”]More than 400,000 members of the Social Security and National Insurance Trust (SSNIT) Pension Scheme, including active/inactive members and pensioners, have therefore been exempted from being governed under the new National Pensions Act, Act 766; they have now been reverted to PNDCL 247 managed solely by SSNIT.
This is because of an amendment to the National Pensions Act, Act 766 which has widened the age category of contributors who were exempted from the new Act from 55 years to 50 years as of January 2010.
SSNIT has, therefore, assumed responsibility over the benefits of these contributors and will be expected to pay the affected contributors the 25 per cent lump sum plus their monthly pensions when they retire
According to SSNIT, the accumulated interest that would be accrued under the new Pensions Law will not significantly benefit retirees.
The migration has caused agitations amongst some worker groups in the country but the Trust insists the move is in the best interest of Ghanaian workers.
Speaking on the Citi Breakfast Show Head of Division at SSNIT, Leslie Arde-Acquah however said the scheme managers arrived at the decision after realizing the gestation period under the new law is too short to benefit contributors.
“The 25 percent lump sum that we pay under the old law is 25 -percent or one quarter of the total amount that you would have earned as pension during your guarantee period.This lump sum is now the bone of contention because the framers of the law said this lump sum have to be enhanced and it will be better under the new law instead of the old law however the principle is that the lump sum component is going to be equivalent to the 5 percent contribution which goes into the tie r two fund which managed by the private fund managers so when you accumulate that 5 percent over a long period it is expected that it will be equivalent to the 25 percent lump sum or it will not be more than that,”he said.
Click on audio to listen to Mr. Arde-Acquah
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By: Umaru Sanda Amadu/citifmonline.com/Ghana