Informal Sector Pension Scheme

 

Definition of the Scheme

 
  • SSNIT Informal Sector Pension Scheme is a voluntary contributory fully funded personal pension scheme.
  • The scheme is designed principally for workers who operate in the informal economy of Ghana
   

 

The objectives of the scheme are to:

 
  • Provide benefits that will ensure retirement income security for informal sector workers
  • Serve as a source of livelihood promotion for informal sector workers 
   

 


The SSNIT Informal Sector Pension Scheme has the following distinguishing features:

 
  • It is a voluntary contributory pension scheme
  • Contribution rates are not fixed but based on members’ preference and ability
  • Contributions can be made daily, weekly, monthly annually or seasonally
  • Contributions by members are divided into two equal parts and credited to two individual member sub-accounts viz: Occupational Scheme Account (50% of Contribution) and Retirement Account (50% of Contribution) after deduction of Life Insurance Premium
  • A member is permitted to make periodic withdrawals from the Occupational Scheme Account after five (5) months of initial contribution provided the account has a credit balance
  • A member can withdraw from the Retirement Account only when the following contingencies arise. (i.e. Old-Age, Invalidity or Death)
  • A member can use his/her contributions as partial collateral to secure credit from approved financial institutions. 
   

 

The scheme is targeted at the following groups of individuals:

 
  • Ghanaian workers in the informal economy aged 15 years and above
  • Ghanaian workers in formal sector establishments
  • Ghanaian workers in the Diaspora 
   

 

Contribution Rate:

 
  • Contribution rates are not fixed but based on individual preference and ability
  • Contributions can be made daily, weekly, monthly, annually or seasonally
  • Members of identifiable groups that have fixed rates of contribution are permitted to make additional voluntary contributions
   

 

Payment of contribution by a registered member of the scheme may be done through any of the following means:

 
  • Accredited Marketing Agent
  • Organised groups or Trade Association
  • Directly at any office of the Fund
  • Bank Standing Order
  • Payroll deductions
  • Money transfer