Benefits

2017 PENSION PAYMENT

?  ?  ?  ?  ?  ?  20Jul2017?  ?  ?  ?  ?  

Pensions to be paid on these dates.


BENEFITS

As stakeholders of the Scheme, contributors are catered for under three main contingencies where benefits are paid to them as and when they qualify. These are
  • ​Old Age Pension
This benefit is paid monthly to a retired member of the Scheme. The member who retires at age 60, which is the compulsory retirement age, and has contributed for not less than 180 months in aggregate, is entitled to a full pension.
When a member retires voluntarily on attaining age 55 or more, but below 60 years and has contributed for not less than 180 months in aggregate, he is entitled to a reduced pension.
  • Invalidity Pension
This benefit is paid monthly to a member who is totally incapable of earning a living through working. The member must have contributed for 12 months within the last 36 months preceeding the incidence of the invalidity. He must have been certified by a Medical Board as being incapable of any normal gainful employment due to a permanent physical or mental disability.
  • Survivor's Lump sum Benefit
The benefit is paid in a lump sum to the nominated dependants of a member upon his/her death. This could happen when the member dies whilst in service or during retirement but not after age 75 years.
  • Other Benefits
With the introduction of the supplementary retirement schemes, the contributor will have access to more than one retirement income. This hopefully should provide enhanced income security for subscribers. Under the 2nd and 3rd Tier Schemes, workers may use their future lump sum benefits as collateral to secure a mortgage loan for a primary residence. 

OLD AGE OR RETIREMENT PENSION

​QUALIFYING CONDITIONS

Full Pension
To qualify for a Full Pension,
  • You must be at least 60 years and You must have made a minimum contribution of 240 months in aggregate.
Reduced Pension
To qualify for a Reduced Pension,
  • You must be 55 and above but below 60 years of age.
  • You must have made a minimum contribution of 240 months in aggregate.

BASIS OF CALCULATION OF OLD AGE PENSION

  1. Age.
  2. Average Best Three Years Salary.
  3. Earned Pension Right - Number of months you have contributed to the Scheme.
You can earn a pension right between 50% and 80% depending on the number  of months contributed at the time of retirement. 240 months guarantee you 50% and every additional month attracts an additional 0.125%.

TO CALCULATE YOUR PENSION

Multiply your best 3 years average salary by your pension credit earned.


REDUCED PENSION

For early retirement from 55 and below 60, the pension is computed as follows
Age5556575859
% of Full Pension60%67.5%75%82.5%90%


25% LUMP SUM PAYMENT OPTION

Whether you qualify for a full/reduced pension, you could choose to collect 25% of your 12 years pension as a lump sum. This will be paid to you at the present value based on the prevailing Treasury Bill Rate. If you so opt, howeveryou will then receive a residual pension.


RETURN OF CONTRIBUTIONS

Where you have not made the minimum contribution period of 240 months but have qualified in age, you will be entitled to a lump sum payment of your total contribution with interest.
 

HOW TO APPLY

  1. Inform the nearest SSNIT Branch Office at least three (3) clear months before your retirement.
  2. The SSNIT Branch Office will then supply you with an Application Form for Payment of Pension for completion.
  3. Complete the form and attach two of your recent passport-size photographs.
  4. Let your employer endorse the form.
  5. Submit your completed form to the SSNIT Branch Office as early as possible.
  6. SSNIT will advise you to collect your monthly pension at a bank of your choice.
  7. Members should fulfill their social security guaranteeship obligations before making their claim.

HOW LONG WILL YOUR PENSION PAYMENT LAST? 

Until Death.

INVALIDITY PENSION

QUALIFYING CONDITIONS

To qualify for invalidity pension
  • You must have made a minimum contribution of 12 months within the last 36 months and
  • You must have been declared permanently invalid and incapable of any normal gainful employment 
    1. by a qualified and recognised medical officer and
    2. certified by a Regional Medical Board.

HOW TO APPLY

  1. Report to the nearest SSNIT Branch Off ice with the Medical report from a recognised Medical Practitioner certifying your incapacitation.
  2. You will be made to appear before a Medical Board for examination.
  3. Where your incapacitation is confirmed by the Medical Board, you will obtain Social Security Application Forms from the Branch Office.
  4. Complete the forms and attach two (2) recent passport size photographs.
  5. Let your employer endorse the forms.
  6. Submit your completed forms and photographs to the SSNIT Branch Office as early as possible.
  7. SSNIT will advise you to collect your monthly pension at a bank of your choice.

CALCULATION OF INVALIDITY PENSION

After you have been certified invalid you will be entitled to a pension as follows
  • If you have made the minimum contribution of 240 months or more, you will be entitled to your earned pension.
  • If you have not made the minimum contribution period, you will receive a pension based on 50% of the average of your best three years salary.

SURVIVORS LUMP SUM

This benefit is paid to dependants of members under the following conditions
  • When the member dies before retirement.
  • When the member, while a pensioner, dies before attaining age 72.

CALCULATION OF SURVIVORS LUMP SUM 

This benefit is computed as follows
  • Where a member dies having satisfied the minimum contribution period of 240 months, in aggregate, a lump sum payment of the earned pension of the deceased member for a period of 12 years will be made at the present value using the prevailing Treasury Bill Rate.
  • Where a member dies prior to satisfying the minimum contribution period of 240 months, in aggregate, 50% of the average of the best 3 years salary pension for the next 12 years will be paid at the present value based on the prevailing Treasury Bill Rate.
  • Where a pensioner dies before attaining age 72, a lump  sum payment based on the present value of his unexpired  pension will be made to his beneficiaries.

HOW TO APPLY

  • Report the death of a member to the nearest SSNIT Branch Office with any one of the following evidences of Death
    • Death Certificate
    • Obituary/Poster
    • Burial Permit
    • Medical Certificate
    • Letter from Employer
    • Affidavit from Chief of village or town
  • On receiving information of the death of a member, SSNIT will request the nominated dependant(s) to apply for the benefit.
  • A dependant(s) may call at SSNIT Branch Office to collect, complete and submit an Application Form to which he will attach the following
    • Two (2) recent passport-size photographs
    • The Membership Certificate of the deceased if available
SSNIT will process the application and a lump sum payment will be made.​