The Management of Social Security and National Insurance Trust (SSNIT) has rejected the claim by Organised Labour that its computation of the benefits of pensioners is inaccurate because it misinterpretations the Pensions Law.

In a statement issued by its Corporate Affairs Department, on Sunday, and copied to the Ghana News Agency, in reaction to the claim, which was carried by the media, it stated: “SSNIT computes benefits accurately in accordance with (PNDCL 247, Act 766 and Act 883), and on sound financial and actuarial principles and practices.

“SSNIT has not changed the mode of computation of benefits since these laws came into effect.

“SSNIT, which is regulated by the National Pension Regulatory Authority (NPRA), operates a transparent administration and is governed by a competent Board of Trustees which includes four (4) members of organised labour, two (2) representatives from Ghana Employers’ Association, one (1) representative from National Pensioners Association, one (1) representative from the Ministry of Finance, a representative from the Security Services, a Board Chairman, a Director-General and two (2) Government appointees”.

The Management of SSNIT, the statement said, had since last year, has been engaging organised labour on the matters raised in relation to the computations of benefits.

The issues in reference, it said, had been referred to the NPRA by both SSNIT and organized labour for their review and directives.

“SSNIT awaits the pronouncements of the NPRA on these issues and would be guided by the Regulator’s directives.

“We take this opportunity to assure all SSNIT contributors and pensioners that their contributions and pensions are safe and their benefits are calculated in accordance with the law”.

At a forum in Accra, last week, Organised Labour alleged that the misinterpreting of the Pension Law was resulting in the payment of low premiums to contributors.

The General Secretary of the Ghana Medical Association, Dr Justice Yankson said the situation had rendered pensioners worse off and in unstable financial condition.

He explained: “The framers of the law indicated that the lump sum is calculated as 25 per cent of monthly pensions for 144 months; whereas SSNIT calculates it as 25 per cent of monthly pensions for 83 months instead of 144.

” The difference between the application and non-application of annuity on lump sum equals 41.9 per cent”.

Source: GNA