The Social Security and National Insurance Trust (SSNIT) will no longer pay an accumulative lump-sum of money as pension to its members when they are on retirement under the new SSNIT pension scheme, Mr. Abudu Abdul Karimu, Upper West Regional Manager of SSNIT has said.

He said by the National Pensions Act of 2008 (Act 766), SSNIT had been mandated to pay only monthly pensions to its members when they are on retirement.

However, workers who were 55 years and above as at January 1, 2010 are still covered by PNDC law 247 and SSNIT will continue to pay them the accumulative lump-sum when they are on pension for the five-year period.

Mr. Karimu was educating workers on the new pension scheme during this year’s May Day celebration in Wa at its customer clinic organised for workers to straighten their records with the scheme.

He said a worker was mandated to contribute 5.5 percent of his/her basic salary to the scheme while the employer contributes 13 percent on behalf of the worker, totaling 18.5 percent.

He said an employer is obliged by law to remit 13.5 percent within 14 days after the end of each month to SSNIT, and SSNIT subsequently remits 2.5 percent out of the 13.5 percent to the National Health Insurance Authority for member’s health insurance.

The remaining 5 percent is paid to the Mandatory Second Tier work-based contributory, privately managed scheme.

Mr. Karimu explained that the 5 percent that SSNIT remits to the Second Tier will be used to manage an employee’s accumulative lump-sum of money as pension to its members when they are on retirement under the new SSNIT pension scheme.

The third-tier, he also explained, is a voluntary scheme similar to provident fund managed in the offices.

Some workers who patronised the clinic in an interview with the Ghana News Agency commended the management of SSNIT for the initiative and called on them to make the exercise a regular one to give rural workers the opportunity to update their records.

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