The Social Security and National Insurance Trust (SSNIT) has officially announced a 15% increase in monthly pension payments for the year 2024, in accordance with its indexation rate.
The adjustment, mandated by Section 80 of the National Pensions Act, 2008 (Act 766), will impact all eligible pensioners on the SSNIT pension payroll as of the conclusion of December 2023. The revised pension structure includes a fixed rate increase of 10% and an additional redistributed flat amount of ¢79.10.
For the minimum-wage pensioner, this results in a new monthly pension of GHC409.10, marking a significant 36.37% surge compared to the 2023 minimum pension payment.
In contrast, the highest-earning pensioner will now receive a substantial GH¢186,777.58 per month.
Joseph Poku, the Chief Actuary at SSNIT, explained that the adjustment was collaboratively determined with the National Pensions Regulatory Authority (NPRA) to shield pensioners from the escalating cost of living while ensuring the sustainability of the pension scheme.
During the unveiling of the 2024 Pension Indexation Report, Joseph Poku emphasized that the 15% increment was a proactive response to the forecasted 20% wage inflation for active contributors and a 23.16% inflation rate projection for the year 2024 by SSNIT.
The average monthly pension is expected to rise from ¢1,527.29 in 2023 to ¢1,756.38 in 2024, reflecting the impact of the 15% indexation rate.
This adjustment will lead to an additional pension expenditure of ¢697.64 million, with the total expenditure for pensioners on the Pension Payroll as of December 31, 2023, estimated to be ¢5,387.72 million in 2024. The move aims to provide financial relief to pensioners and ensure the continued effectiveness of the pension program in the face of economic uncertainties.
