Over 100,000 self-employed join SSNIT scheme in 18 months
THE Social Security and National Insurance Trust (SSNIT) enrolled 101,028 members under its new initiative meant to attract the self-employed in the country under the Tier One pension scheme.
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Christened: Self Employed Enrolment Drive (SEED), the enrolment exercise, which was between January last year and June this year, resulted in the collection of GH¢50.6 million from the members.
The Manager of SEED, Richard Manu, who announced this at a media encounter in the Eastern Region, said the benefits of contributors under the scheme are not different from those in the formal sector.
He said up to 60 per cent of a member’s three best years’ average annual salaries will also be paid as pension; the scheme assumes longevity risk; pensions will be paid till death; adding that pensions will be increased annually to maintain the purchasing power of pensioners.
He said there is also an in-built life policy and SSNIT assumes mortality risk and emigration benefit for non-Ghanaian members.
SEED launch
Launched in May last year, SEED is essentially the Tier One product that has been repackaged, that is, the Basic National Social Security Scheme, to urge the self-employed to contribute regularly on their full earnings for a guaranteed pension, among other benefits.
The initiative focuses on enrolling self-employed persons and workers in the informal sector on the SSNIT Scheme.
Labour force
Ghana’s labour force stands at 11.5 million. The working population stands at 9.9 million, of which 6.7 million are self-employed.
Of that figure, 3.6 million are above 45 years while 3.1 million are between the ages of 15 and 45 years.
About 80 per cent of the working population is in the informal sector, with the remaining in formal employment.
Meanwhile, it is estimated that 600,000 self-employed persons are on a pension scheme.
Clearing misconceptions
Mr Manu used the opportunity to clear some misconceptions about the Tier One pension scheme saying: “The SSNIT scheme (Tier 1) is open to all workers in Ghana
“Self-employed persons and workers in the informal sector have the right to join and contribute to the SSNIT Scheme.”
Mr Manu also noted that self-employed persons and workers in the informal sector are not limited by law to contribute to only Tier 3.
“The SSNIT scheme is not an investment or savings scheme; it provides insurance for your income and pays pension in your old age or the event of permanent invalidity.
SSNIT pensions are not low; they are a reflection of the basic salaries on which contributions were paid by a member while in active service,” he added.