National Pensions Act 2008 Act 799
For any employee who was less than 55 years on 1st January 2010 the new act applies to you and also any employee who retires today, SSNIT only guarantees you 60% of your best three years average salary as your monthly pension.
An employee 60% is the maximum pension right that a pensioner can receive and nothing more. More to the point the 60% pension right is not automatic.
An employee’s first 15 years (180 months) will earn him or her a pension right of 37.5%. Any additional year will earn him or her 1.125% up to a maximum of 20 years
An employee pension right for 35years will be 60%. Any further year will not count in his or her pension right. Any worker who worked for less than 35 years will not earn 60%pension right and that means further less money
SSNIT also guarantees a pensioner 12 years monthly pension so that when a pensioner dies before their 72nd birthday a lump sum of the remaining years out of the 12 years is paid to beneficiaries.
But if a pensioner does not die he or she will continue to receive his or her pension until he or she dies and nothing will be received by beneficiaries.
For instance, to calculate the pension for Mr. Ofori 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
Pension right for 15 years = 37.5%
Pension right for an additional year is 1.12% ×20 years maximum=22.5
Therefore 37.5 +22.5=60%
=112900/3 = GHc 37633.33
Multiply GHc37633.33 by Ofori pension right of 60% = GHc 22579.99
To arrive at monthly pension divide GHc22579.99 by 12months = GHc1881.67 monthly pension
Remember SSNIT only pays monthly pension and not lump sum under the new act.
The lump sum will be the second tier ( TIER TWO) which is private