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General News of Sunday, May 5th, 2019
Source: 3news.com
2019-05-05
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The National Pension Regulatory Authority (NPRA) instructed the Social Security and National Insurance Trust (SSNIT) to familiarize workers with the mechanisms involved in calculating their monthly pension payments prior to their retirement.
Atta Krufi, President and CEO of NPRA, said the SSNIT should inform its contributors twice before the retirement age to allow them to become familiar with the payment terms of their payments.
"That's why we've given SSNIT guidelines for this whole discussion, that from age 57, it's best to write to the person, to invite them, to sit with her, go through the formula with her, discuss with them what goes into the calculation, "he explained.
Mr. Krufi made this observation during a keynote address on TV3's The Key Points on Saturday, adding that contributors also had to follow the process one year before their retirement.
His comments are based on concerns expressed by unionized workers about the need to be unaware of how pension payments are calculated.
During the celebration of May 1, the Secretary General of the Trade Union of Workers of Industry and Commerce, Solomon Kotei, asked SSNIT to explain how the payments of pensions are made for the sake of transparency .
According to the CEO of NPRA, Ghana has a different dynamic where the payment is calculated based on the best three years of contribution contributors.
"The law says that we look at your best three years throughout your professional life. What the SSNIT will do is to consider your best contribution …
"In other traditional defined benefit plans, for instance, in the UK, they look at your contribution to national insurance, your taxes, and then your behavior over time, that's the formula they use and the average of your life.
"Here they look at your best three years, now people are not retiring by the end of the year …," said Krufi.
The CEO of NPRA encouraged all contributors to conduct ongoing audits to ensure that their employers pay their SSNIT contributions.
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