Tuesday, December 10, 2019
Home BUSINESS Ghana’s national Social Security wants contribution rates reviewed, here is why

Ghana’s national Social Security wants contribution rates reviewed, here is why

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Speaking at the Volta Regional forum in Ho to discuss pension-related issues Dr Ofori-Tenkorang explained that this is to enable the company to sustain the pension scheme and to pay workers higher pensions.

Currently, the contribution rate is 11% of basic salary but SSNIT wants it reviewed to at least 19.2%.

Dr Ofori-Tenkorang added that comparing the contributions SSNIT receives and the pensions they pay there is a possibility the company may not be able to meet its obligations in the future especially when the number of pensioners in the country keeps increasing.

“We have had external actuaries who come and look at our scheme every three years and some of their suggestions they have been making is that we should come up with an appropriate funding rate to sustain the scheme.”

He added that the time had come for Ghana to build a robust and sustainable scheme that would still be there for generations to come.

Addressing claims that SSNIT pensions were low, Dr Tenkorang denied saying that pensions were “a direct reflection of salaries of workers on which they contribute”.

He described SSNIT as a “generous scheme”, explaining that the lowest paid pensioner earns more than the lowest paid worker in active service despite meagre contributions.

“SSNIT does not cheat workers. I can’t cheat you; SSNIT workers cannot cheat you too. If they don’t even pay you the right amount, they can’t put that money in the pocket because wrong computation can easily be corrected.”