‘Benefits payments are accurate’ – SSNIT fends off Organised Labour allegations

25 Mar 2019 --

The Social Security and National Insurance Trust (SSNIT) has refuted a claim by Organised Labour that it is misinterpreting the Pension Law and paying low premiums to contributors.

General Secretary of the Ghana Medical Association (GMA), Dr Justice Yankson, has been quoted in the state-owned newspaper, Ghanaian Times, as saying that the situation has rendered pensioners worse off.

“The framers of the law indicated that the lump sum is calculated as 25 per cent of monthly pensions for 144 months whereas SSNIT calculates it as 25 per cent of monthly pensions for 83 months instead of 144. The difference between the application and non-application of annuity on lump sum equals 41.9 per cent,” the newspaper quoted Dr Yankson.

Also, General Secretary of the Trade Union Congress (TUC), Yaw Baah, was reported as saying that there were many challenges that needed to be addressed.

“He said that there were governance and accountability issues with SSNIT hence, the need to give clear accounts of how pensions are calculated before arriving at the final figure.

“Mr Baah stressed the importance of resolving these issues by January 2020 so that pensioners would not be negatively impacted as the tier 2 scheme would be active by then and pensioners could be cheated through the calculation of the past credits,” the newspaper reported.

However, in a release issued on Sunday, the Management of SSNIT said the claims were unfounded because the Trust has not changed the mode of computing benefits.

“SSNIT computes benefits accurately in accordance with (PNDCL 247, Act 766 and Act 883), and on sound financial and actuarial principles and practices. SSNIT has not changed the mode of computation of benefits since these laws came into effect,” the reaction issued by the SSNIT Corporate Affairs Department indicated.Read the full rebuttal by SSNIT below.

RE: ORGANISED LABOUR ACCUSES SSNIT OF MISINTERPRETING PENSION LAW

24 MARCH 2019

The Management of Social Security and National Insurance Trust (SSNIT) has taken notice of publications in the 20th and 21st March 2019 editions of the Ghanaian Times and Daily Graphic newspapers, and carried by different media outlets.

SSNIT wishes to respond as follows:

SSNIT computes benefits accurately in accordance with (PNDCL 247, Act 766 and Act 883), and on sound financial and actuarial principles and practices.

SSNIT has not changed the mode of computation of benefits since these laws came into effect.

SSNIT, which is regulated by the National Pension Regulatory Authority (NPRA), operates a transparent administration and is governed by a competent Board of Trustees which includes four (4) members of organised labour, two (2) representatives from Ghana Employers’ Association, one (1) representative from National Pensioners Association, one (1) representative from the Ministry of Finance, a representative from the Security Services, a Board Chairman, a Director-General and two (2) Government appointees.

The Management of SSNIT, since last year, has been engaging organised labour on the matters raised in relation to the computations of benefits.

The issues in reference have been referred to the NPRA by both SSNIT and organized labour for their review and directives.

SSNIT awaits the pronouncements of the NPRA on these issues and would be guided by the Regulator’s directives.

We take this opportunity to assure all SSNIT contributors and pensioners that their contributions and pensions are safe and their benefits are calculated in accordance with the law.

Issued by the SSNIT Corporate Affairs Department.

fends
SSNIT

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