In line with Section 80 of the National Pensions Act 2008 (Act 766), SSNIT with the National Pensions Regulatory Authority (NPRA) has increased the monthly pension payment by 25% for 2023.
All pensioners on the SSNIT Pension Payroll as of December 31, 2022 would see their monthly pension increases by a Fixed Rate of 19% plus a redistributed Flat Amount of 73.58, according to a Trust circular.
The effective increase in pensions would therefore range from 19.05% for the highest-earning pensioner to 43.53% for the lowest-earning pensioner.
Accordingly, the highest-earning Pensioner as of December 31, 2022 will receive ¢169,725.89 per month in 2023.
The lowest-earning pensioner as of December 31, 2022 will have his / her monthly pension increased from ¢ 430.58 in 2023, from ¢300 in 2022.
Pensioners will be paid on the third Thursday of every month.
SSNIT also said redistribution is a mechanism applied to the indexation rate to cushion low-earning pensioners in conformity with the solidarity principle of social security.
The SSNIT Scheme, like any other defined benefit scheme, it said, pays pensions which mirror the earned salaries on which contributions were paid.
Source: JoyBusiness