Social Security

Pension Rights

The National Pension Act provides for both full and partial pension. For full pension, a worker must have attained 60 years of age (55 years if working under hazardous conditions) with at least 180 months (15 years) of contributions. An early pension is also available to workers from the age of 55 years with at least 180 months (15 years) of contributions.

A worker's best 3 years average salary is taken to calculate pension. 15 years/180 months of contribution give a worker the right to 50% of his average earnings as a pension. Highest pension is 80% of 3 years' average salary..  The minimum monthly pension is 100 cedi.

Longer contributions lead to increase in the pension. Early pension ranges from 37.5% (age 55) to 60% (age 59) of the full pension. At age 60 with less than 180 months of contributions, old-age grant is paid as a lump sum of the present value of total contributions plus interest. The interest rate is set at 75% of the prevailing government Treasury bill rate.

Sources: § 70, 75-76 of the National Pensions Act 2008(Act 766)

Dependents' / Survivors' Benefit

National Pensions Act, 2008 provides for survivor benefit. Eligible survivors are named by the deceased; if beneficiaries are not named, eligible survivors are persons specified in the rules of the scheme .

The lump-sum survivors' benefit is paid if a worker dies after attaining retirement age (60 years) and before reaching 75 years of age. If the insured was not a pensioner, a lump sum of the present value of 15 years of pension is paid. The present value of the pension is calculated using the prevailing monthly Treasury bill interest rate or 10%, whichever is lower.

Mandatory occupational pension is paid as a lump sum of the total value of contributions plus interest, if the insured person dies before retirement.

Survivor grants are not payable abroad. These benefits are reviewed annually and may be adjusted based on the average increase in the wages of contributors to the scheme.

Sources: § 73 & 78 of the National Pensions Act 2008 (Act 766)

Invalidity Benefit

National Pensions Act, 2008 provides for invalidity benefit in the case of non-occupational accident/injury/disease resulting into permanent invalidity. If an insured worker has made at least 12 months of contributions in the last 36 months and is certified by a medical board on his inability to engage in any gainful employment, he/she is entitled to invalidity benefit either as the minimum pension (which is 37.5% of a workers' best 3 years average salary) or earned pension whichever is higher.

If the insured person does not meet the qualifying conditions for the disability pension (social insurance), disability grant is paid as a lump sum of the present value of total contributions plus interest. The interest rate is set at 75% of the prevailing government Treasury bill rate.

A lump sum of the present value of total contributions plus interest is paid as a mandatory occupational pension. The insured person must be assessed with a total or permanent disability.

Sources: § 71 & 79 of the National Pensions Act 2008 (Act 766)

Regulations on Social Security

  • National Pensions Act, 2008
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