The Social Security and National Insurance Trust (SSNIT) is a statutory public Trust charged under the National Pensions Act, 2008 Act 766 with the administration of Ghana’s Basic National Social Security Scheme. Its mandate is to cater for the First Tier of the Three-Tier Pension Scheme. The Trust is currently the largest non-bank financial institution in Ghana.
The primary responsibility of the Trust is to replace part of the lost income of workers in Ghana due to Old Age, Invalidity, or Death of a member where dependants receive lump sum payment. It is also responsible for the payment of the Emigration benefit to a non-Ghanaian member who is leaving Ghana permanently.
The Pension Scheme as administered by SSNIT has an active membership of over 1.6 million as of January 2021 with over 226,000 pensioners who regularly receive their monthly pensions from SSNIT.
The Trust was established in 1972 under NRCD 127 to administer the National Social Security Scheme. Prior to 1972, the Scheme was administered jointly by the then Department of Pensions and the State Insurance Corporation. The Trust administered the Social Security Scheme as a Provident Fund Scheme until 1991 when it was converted to a Social Insurance Pension Scheme then governed by the PNDC law 247. The scheme in Ghana was reformed by an Act of Parliament, Act 766 of 2008, and was implemented in January 2010 to replace all pension schemes in Ghana including Cap 30. In 2014, the National Pensions (Amendment) Act 883 was passed to amend portions of Act 766.
“To be the model for the administration of Social Protection Schemes in Africa and beyond”.
“To provide income security for workers in Ghana through excellent business practices”.
Core Functions of SSNIT
Core Values of SSNIT
The day-to-day administration of the Trust is headed by the Director-General assisted by three (3) Deputy Director Generals (DDGs).
There are seven (7) General Managers in charge of Investment and Development (IDD), General Counsel (GC), Finance, Operations, Administration and Human Resources (ADMIN/HR), Management Information Systems (MIS), and Benefits. Other responsibilities under the Directorate include that of the Chief Actuary, the Chief Internal Auditor, the Company Secretary, and the Corporate Affairs Manager.
How SSNIT Works
SSNIT has a decentralized operational system made up of the Area, Branch, Day Offices, and an Agency. An Operations Coordinator at the Head Office coordinates all operational activities and reports to the General Manager, Operations.
There are eight (8) Area Offices, fifty-one (51) Branches, twenty-three (23) Day Offices, and an Agency spread throughout the country.
The Branch activities include:
The Area Offices exercise supervision over the Branches and carry out the following activities:
The Basic National Pensions Scheme (Tier-1)
National Pension Act (2008) Act 766
Act 766 makes provision for a contributory 3-Tier Pension Scheme and the establishment of a National Pensions Regulatory Authority (NPRA) to oversee the administration and management of the Pension Schemes. Under the Act, SSNIT is to manage the Basic National Social Security Scheme referred to, as the 1st Tier of a contributory 3-Tier scheme.
The other Tiers of the National Pensions Scheme are:
Features of Act 766
Mandatory for all workers in the formal sector and optional for self-employed.
Contribution Rates under the Social Security Scheme ( Tier 1)
Out of the 18.5%, the employer remits 13.5% within 14 days of the ensuing month to SSNIT. 5% is remitted to the Second-Tier Mandatory Occupational Scheme.
Subsequently, SSNIT also gives 2.5% out of the 13.5% to the National Health Insurance Authority (NHIA) for the member’s Health Insurance.
Benefits & Qualifying Conditions.
Key Features of PNDC Law 247
The highlights of the PNDC Law 247 include:
The Trust's Obligation
Social Security and National insurance Trust manages the 1st tier of the 3 tier Pension Scheme. SSNIT has over the years administered Social insurance in Ghana and workers have been well catered for upon retirement and injury under the scheme. All activities undertaken by SSNIT are within the confines of the Law.
The Social Security and National Insurance Trust (SSNIT) is currently charged with the administration of Ghana’s Basic National Social Security Scheme. Its mandate is to cater to the First Tier of the Three-Tier Pension Scheme. The primary responsibility of SSNIT is to replace part of lost income of workers in Ghana.
Therefore the TRUST is mandated by law to;
The Trust is to ensure that;
National Pensions (Amendment) Act, 2014, Act 883
An Act to amend the National Pensions Act 2008 (Act 766) to reduce the age for exemption from the First Tier Scheme, Act 766, and to provide for related matters.
Reduction in the Age Exemption
Members who were 55 years and above as of January 2010 were exempted from Act 766. Members aged 50-54 years who were affected by Act 766 were made worse off. Hence the implementation of the National Pensions (Amendment) Act 2014, Act 883. Members who were aged 50 as of 2010 have now been exempted from Act 766. This means that all those exempted will continue to contribute 17.5%. They will also be paid the full benefit namely, monthly pension and the 25% lump sum by SSNIT. Despite the reduction in the age exemption from 55 to 50 years, it is still optional for any such member to decide to join Act 766.
Correction of the formulas for computation of Pensions
The Amendment Act 833 also corrected the formula for the computation of pensions by providing that the minimum 15 years or 180 months period of contribution entitles a member to 37.5% pension right and every additional twelve (12) months contribution entitles the member to 1.125% pension right up to a maximum of 60%.
Emigration benefit is a lump sum payment of benefits to non-Ghanaian members of the Social Security Scheme under Act 766 whose services are ended and are leaving Ghana permanently. Whether the member has reached the retiring age or not, whatever benefit is due him/her will be paid as a lump sum in Ghanaian currency to the member.
Employers to furnish information by SSNIT within Seven (7) working days
The Amendment provides that, where SSNIT officials request an employer to furnish any information relating to the employer, the employer shall furnish the information within seven (7) working days.
SSNIT Emporium, Airport City, Accra