Business News of Thursday, 2 January 2020
The Social Security and National Insurance Trust (SSNIT) has assured pensioners of an increase in their payroll for 2020.
In a statement released by the institution, they explained that there has been an 11percent increment in the monthly stipends; higher than the projected 8percent.
“The 2020 indexation rate was determined using the percentage change in the annual average Consumer Price Index (CPI) for 2019, forecast of the 2020 National Annual Price Inflation, ability of the Fund to pay and the long-term sustainability of the Scheme among others.
The approved overall indexation rate of 11% for 2020 is higher than the forecasted inflation rate of 8.0% for 2020. The overall indexation amount was redistributed at a Fixed Rate of 6.6% and a Flat Amount of GH¢ 37.38 for all Pensioners on the SSNIT Pension Payroll as at 31st December 2019.”
With this redistribution, lowest-earning pensioners will get an effective increase of 19.06%.
70% of pensioners will receive 11% or more as effective increase in their pensions.
98% of pensioners will receive an effective increase equal to or above the targeted inflation rate for 2020.
Additionally, Pensioners on the SSNIT Pension Payroll as at 31st December 2019 receiving the minimum pension of GHC300.00 will have their pensions increased to GH¢357.18 (an increase of 19.06%).
New Pensioners in 2020, however, will be given a minimum of GHC300.