SSNIT pays over ¢59m difference in past credit due 19,918 pensioners

The Social Security and National Insurance Trust (SSNIT) says it has paid the difference in Past Credit due its pensioners.

According to the Trust, “the payments are as a result of implementing the agreement reached in a Memorandum of Understanding between government and sections of Organised Labour on the interest rate applied to the accrued Past Credit which is a one-time benefit for pensioners who are retiring under the National Pensions Act, 2008, Act 766.

“Specifically, the accrued Past Credit grows at the full 91 – day Treasury Bill rate, compounded quarterly, until the date of payment to the beneficiary.”

Consequently, a difference of ¢59,612,321.23 was paid on Thursday to 19,918 pensioners.

SSNIT said by this payment it has complied with the agreement signed by the Finance Minister, Employment Minister as well as representatives of sections of Organised Labour.

The implementation of the three-tier pension scheme (Act 766), mandated the Trust (first tier operator) to pay monthly pensions and the second tier fund managers to pay a lump sum which hitherto was being paid by the Trust under the Social Security Law (PNDCL 247).

However, workers affected by the Act 766 who as at December 31, 2009 (i.e. the eve of the implementation of Act 766), had contributed to the SSNIT Scheme were entitled to a Past Credit.

The Past Credit constitutes 4% of contributors’ salaries, accumulated with interest from the dates on which the contributions were received by the Trust, up to 31st December 2009.

This Past Credit plus additional accrued interest, which has been adjusted from 75% to 100% of the prevailing Treasury Bill rate from January 1, 2010, till the date of retirement is what is paid to the Member by SSNIT as part of their lump sum.

This application of 100% of the 91-day Treasury Bill rate compounded quarterly in determining the additional accrued interest is what has yielded the over ¢59 million additional payment to members who are receiving their pension under Act 766.

SSNIT said members who may have any challenges regarding their Past Credit should please call its contact centre on 0302 611622.

The Trust assured, “all would-be pensioners and the general public, that it will at all times pay all legitimate benefits and continuously work to guarantee timely payment of benefits.”

Source: Joy Business