First law: 1965.

Current law: 2008 (National Pensions Act, Act 766), implemented in 2010. 

Type of program: Social insurance and mandatory occupational system.

Note: The two-pillar system is mandatory for persons who were younger than age 55 in 2010 and voluntary for those aged 55 and older in 2010.

Employed persons.

Voluntary coverage for self-employed persons and previously insured persons who are unemployed.

Special system for armed forces personnel.

Insured person: 5.5% of earnings; 18.5% of declared income for voluntary contributors.

Of the total 18.5% of earnings contributed by the insured and the employer, 2.5% finances medical benefits under Sickness and Maternity and 5% finances the mandatory occupational pension scheme.

Self-employed person: 18.5% of declared income.

Of the total 18.5% of earnings contributed, 2.5% finances medical benefits under Sickness and Maternity and 5% finances the mandatory occupational pension scheme. 

Employer: 13% of payroll.

Of the total 18.5% of earnings contributed by the insured and the employer, 2.5% finances medical benefits under Sickness and Maternity and 5% finances the mandatory occupational pension scheme.

Government: None.

Old-age pension

Social insurance: Age 60 (age 55 for employees working under hazardous conditions) with at least 180 months of contributions.

Early pension: Age 55 with at least 180 months of contributions.

Old-age pensions are not payable abroad.

Old-age grant: Paid to insured persons at the normal retirement age with less than 180 months of contributions.

Mandatory occupational pension: Age 60.

Early pension: Age 50 and unemployed or self-employed; any age if permanently emigrating or retired before age 50 according to the terms and conditions of employment.

Disability pension

Social insurance: Paid if the insured is assessed with a permanent disability and incapacity for any gainful employment with at least 12 months of contributions in the last 36 months. The disability must be assessed by a qualified and recognized medical officer and certified by a regional medical board.

Disability pensions are not payable abroad.

Disability grant: Paid if the insured does not meet the qualifying conditions for the disability pension under the social insurance scheme.

Mandatory occupational pension: Paid if the insured retires or leaves the workforce as a result of a total or permanent disability.

Survivor grant

Social insurance: Paid if the insured dies before retirement or was younger than age 75. 

Eligible survivors are dependents named by the deceased.

Survivor grants are not payable abroad.

Mandatory occupational pension: Paid if the insured dies before retirement.

Eligible survivors are named by the deceased; if there are no named beneficiaries, eligible survivors are persons specified in the rules of the scheme.

Old-age pension

Social insurance: The pension is 37.5% of the insured's average annual earnings in the three best years of earnings. The pension is increased by 0.9% of the average earnings for each 12-month period or 0.075% of average earnings for each month of contributions exceeding 180 months.

The minimum monthly pension is 45.06 cedi.

Early pension: From 60% (age 55) to 90% (age 59) of the full pension is paid.

Benefit adjustment: Benefits are reviewed annually and may be adjusted based on the average increase in the wages of contributors to the scheme.

Old-age grant: A lump sum of the value of total contributions plus interest is paid. The interest rate is set at 75% of the prevailing government Treasury bill rate.

Mandatory occupational pension: A lump sum of the value of total contributions plus interest is paid.

Early pension: A lump sum of the value of total contributions plus interest is paid.

Disability pension

Social insurance: The minimum pension is 37.5% of the insured's average annual earnings in the three best years of earnings. The pension is increased by 0.9% of average earnings for each 12-month period or by 0.075% of average earnings for each month of contributions exceeding 180 months.

Benefit adjustment: Benefits are reviewed annually and may be adjusted based on the average increase in the wages of contributors to the scheme.

Disability grant: A lump sum of the value of total contributions plus interest is paid. The interest rate is set at 75% of the prevailing government Treasury bill rate.

Mandatory occupational pension: A lump sum of the value of total contributions plus interest is paid.

Survivor benefit

Social insurance: If the insured was a pensioner at the time of death, the benefit is a lump sum of the present value of the pension that would have been paid from the insured's death until age 75. 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.

Benefit adjustment: Benefits are reviewed annually and may be adjusted based on the average increase in the wages of contributors to the scheme.

Mandatory occupational pension: A lump sum of the total value of contributions plus interest is paid.

National Pensions Regulatory Authority (http://npra.gov.gh/site/) provides general supervision.

National Pensions Regulatory Authority
Office of the Head of Civil Service Annex, PMB,
Ministries Post Office,
GH-Accra,
Ghana

Tel.: +(233 302) 688169/688089/688232

Social Security and National Insurance Trust (http://www.ssnit.com) administers the social insurance scheme through a tripartite management board.

Social Security and National insurance Trust
Pension House,
PO Box M149,
GH-Accra,
Ghana

Tel.: +(233 302) 667742/667731
Fax: +(233 302) 686373

Private trustees approved by the National Pensions Regulatory Authority, with the assistance of registered pension fund managers and custodians, administer the mandatory occupational pensions scheme.