The Trade Union Congress (TUC) is in a tug-of-war with SSNIT over the computation of contributors’ benefits. The issue raised by the TUC is on the premise that SSNIT has wrongly applied the Pensions Law (PNDCL 247).
According to the TUC, the lapses identified in the computation of pension benefits relate to;
- How SSNIT recognizes the best three (3) years of contributors’ annual salary that form the basis of the monthly benefits (annuity)
- Early retirement reduction factor applied when one goes on early retirement
- The annuity factor applied on lump sums.
The TUC describes the annuity factor as ‘strange to the PNDCL 247 and must be scrapped’. SSNIT however asserts that the best three years’ method is the best option for contributors.
The conflict has travelled for a period and for which SSNIT indicates has been referred to the NPRA who are expected to give judgement on the matter. According to SSNIT they have hired an independent actuarist and an independent lawyer to look into the matter. The consultants have since submitted the reports which have been lodged with the regulator.
The TUC is maintaining their usual strong stance in ensuring their grievances are addressed. However, SSNIT has so far declined to comment on the matter as the finality of the conflict rests with the regulator.
