SSNIT, NPRA to announce increase in pensions payment in January, 2022
Increase in payment to ensure pensioners can afford goods and services
Increase minimum pension of GH¢ 300 to sustain the economic welfare of pensioners, ACRR
The ACRR has stated that monthly pensions payment in Ghana is expected to increase by at least a ‘fixed rate’ of 9 percent per pensioner, starting from January, 2022.
The ACRR (Africa Centre for Retirement Research) has therefore, indicated that the SSNIT, in consultation with the National Pensions Regulatory Authority (NPRA), will announce the new pension indexation rate for 2022 in January next year.
According to the ACRR, the expected increase in pension payment is in line with the National Pension Act, 2008 (Act 766 as amended) which states that “the Trust shall annually review the pension payment which shall be indexed to wage inflation rates of active members or another rate determined by the Trust in consultation with the Board of the Authority.”
This, it said would ensure that increases in prices of goods and services do not affect the ability of pensioners to purchase items.
“The objective is to keep retirees buying power constant by applying inflation-adjusted index to pensions in payment”, it said.
The ACRR said in addition to the ‘fixed rate’ of 9 percent, pensioners were also to receive an equally distributed ‘Flat Amount’.
“The Fixed Rate of increase for each pensioner is derived using Annual Average Price Inflation Rate as the primary reference variable, whilst the ‘Flat Amount’ is derived from the excess or difference between the awarded fixed rate and the agreed overall indexation rate for the year,” it added.
In addition, the centre said: “to practically sustain the economic welfare of pensioners, the minimum pension, which has stayed at GH¢ 300 since 2018 needs to be reviewed upward in 2022 to reflect the actual cost of living. That will also close the growing economic gap between new and old retirees.”