Low retirement contributions causing low benefits – SSNIT boss

General News on Thursday, May 2nd, 2019

Source: citinewsroom.com

2019-05-02

The Social Security and National Insurance Fund (SSNIT) has attributed the low benefits that some retirees in the country receive during their retirement to the failure of some employers or even their employees who do not contribute enough in service active.

According to its managing director, John Ofori Tenkorang, the current situation is not a deliberate attempt by the Trust to deprive retirees of what is due to them.

Some fear that most retirees can not lead a decent life because the pension benefits provided by the public institution are terribly inadequate.

Speaking Wednesday on the point of view, Tenkorang lamented the development, noting that the surest way to address these challenges is for the contributors to be true to themselves and make the appropriate payments to avoid these circumstances. .

"I'm not surprised, people still feel they do not have enough money to retire, but you get what you put in the SSNIT scheme." Pensions are just a reflection of Our laws that govern our pensions stipulate that, taking the number of months a contributor has contributed, the number of contributory months, the highest percentage of his eligible salary on which he will be paid. your contribution is what your pension will reflect. "

"People pay pensions on their basic salaries, because there is a story that says that if you give your money to SSNIT, you throw it away. If you do not pay and you are found, SSNIT will pick you up in court, so let me pay them something to keep them at bay. It affects people when they retire, "he added.

The Trust has also denied erroneous claims that private investments are more beneficial than making contributions to the SSNIT.

"There is an argument that says it's better to put your SSNIT contributions into some investments and savings, which will put an end to an extra amount at retirement, instead of giving it to SSNIT. When people sell this story, it discourages them to invest with SSNIT, but the biggest danger is that this story is not true. The value that SSNIT gives you is much better than putting your money in a kind of economy. "

Fix pension problems within three months – Nana Addo at the Ministry of Employment

In the meantime, President Nana Akufo-Addo has tasked the Minister of Employment and Labor Relations to resolve all pension issues in the next three months.

The ministry should work with the SSNIT and the National Pension Regulatory Authority (NPRA).

Speaking to the celebrations of the Day of May 2019 Wednesday on Black Star Square, President Akufo-Addo emphasized the essential contribution of the workforce to economic growth.

"We will build a strong economy and a prosperous society when we put in place a sustainable pension plan for all workers. For far too many people, the end of their lives is marked by poverty. Too many people have no pension at all or do not have enough pension to meet the needs of old age, "said the President.

In the informal sectors of the economy, President Akufo-Addo lamented that "most people work without worrying about pension coverage and that, when they no longer have the strength to to work, their lives become miserable. "

With about 90% of workers working in the informal sector, the president said attention should be focused on extending access to this sector in line with the National Pensions Act.