The impact of SSNIT pension scheme on retired workers in Accra

Abstract

The SSNIT Pension scheme was instituted (coverted from Provident Fund) in 1991 with the promulgation of PNDC Law 247 to pay benefits in the event of some specified contingencies namely: old age, death and invalidity. The study focused on the old age benefits paid to retired workers (contributors) which is deemed as a replacement of their lost income. Benefits paid range between fifty and eighty percent of ones best three years' salary. Though the system has been in operation for some time now, its impact has not been well felt due to the low levels of pension income paid to majority of its beneficiaries. The main cause of these low pension levels has been the general poverty level in the country to make matters worse, economy-wide factors such as high inflationary rates, high cost of living erode the real incomes of the pensioners. Hence, post-retirement life is extremely difficult for the vast majority. The objective of the study was therefore to find out other supplementary benefits that pensioners might require from the scheme to ease the effect of inflation on their real incomes. Perhaps it is expedient for Management of the scheme to review the scheme to respond to the demands of its retired workers by offering some supplementary benefits. In addition, there is the need for the institution of other complementary schemes to ensure adequate income to enable retired workers live a meaningful post-retirement life