SSNIT SCRAPS lump sum payment to retirees from 2020

The Social Security and National Insurance Trust (SSNIT) has served notice that from January 2020, SSNIT will no more pay lump-sum payments to retirees. All such contributors are being passed on to fund managers of retirees’ second-tier contribution where they would receive their lump sums from.

In addition to that, SSNIT will also pay a monthly allowance to such workers. The new policy is in accordance with the National Pensions Act, 2008 (Act 766), Director-General of SSNIT, Dr John Ofori-Tenkorang, who disclosed this at a breakfast meeting with some employers in Accra on Thursday said. 

“As you may know, PNDC Law 247, which enjoins us to pay the 25 per cent lump sum to contributors, sunsets in December 2019. The last group of such workers will turn 60 years by December 31, 2019. This implies that all workers who turn 60 from next year will have their benefits processed under the three-tier pension scheme (Act 766),” the SSNIT boss explained. 

Ofori-Tenkorang therefore, advised employers to help staff access their lump sums from their second tier fund managers “because you know where they are”.He disclosed that SNNIT spent over GH¢250 million on monthly obligations and hoped employers will contribute their quota through prompt payments to sustain SSNIT’s operations.  

“When you deduct 5.5 per cent from their salaries, you add your portion of 13 per cent, and over the last 12 months you have remitted the 13.5 per cent to SSNIT regularly,” he told the employers who he described as critical link between the trust and workers. 

The SSNIT Director-General gave an assurance that the management of SSNIT remained focused on the core mandate of the trust and would deliver on the obligation to workers and all contributors.

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