SSNIT targets 500,000 informal contributors in 2 years

The number of informal contributors to the Social Security and National Insurance Trust (SSNIT) Pension Scheme is expected to rise to about 500,000 by the end of 2013.

Currently, the Scheme has roped in about 80,000 members from the informal sector nationwide and has footprints in 7 regions.

Dr. Francis Sapara-Grant, Managing Director of the scheme disclosed to B&FT that the scheme differs from the provident fund which provides lump-sum payments during old age, invalidity and survivors' benefits.

He said the scheme will provide contributors with long and short-term financial benefits, since most of them require financial support to boost their businesses and thereby increase incomes.

The scheme is a voluntary contributory pension scheme designed principally for workers in the informal sector, which will provide members with the benefits that are based exclusively on their contributions.

The following groups of persons are eligible to join the scheme; Ghanaian workers in the informal economy aged 15 years and above, workers in the formal sector establishments and workers in the Diaspora.

However, the scheme has a distinguishing feature which is a voluntary contributory pension scheme wherein contribution rates are not fixed but based on a member's preference and ability.

Presently - like the SSNIT Pension Scheme - the Informal Sector Pension Scheme offers benefits such as old age pension, disability benefit and survivor's lump-sum benefit.

Contribution by members is on daily, weekly, bi-weekly, monthly and annual basis, and is not fixed according to members' preference and ability.

The contributions are divided into two equal parts and credited to two individual member accounts - Occupational Scheme Account, 50% of contribution; and Retirement Account, 50% after deduction of life insurance premium.

Available studies conducted by SSNIT from 1995 to 1996, with support from the World Bank Technical Assistance, indicate that workers in the informal sector are eager to sign onto a social security scheme.

SSNIT therefore introduced the Informal Pension Scheme on a pilot basis in May 2005.