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Simple Steps to Calculate Your Pension Worth/Fund + Download Pension Act 766

 

The Ghana National Pensions Act 766 establishes the legal framework for a national pension schemes and a national social security scheme.

 

The National Pensions Act is divided into four parts; Part One is on the establishment of a contributory three-tier pension scheme and National Pensions Regulatory Authority,

Part Two
deals with the basic national social security scheme, Part Three provides for occupational pension schemes, provident fund and personal pension schemes and management of the schemes and Part four is on general provisions.

 

TO CALCULATE YOUR PENSION

Multiply your best 36 months (3 years) average salary by your “pension right”.

The Pension Right is 2.5% for each year of contribution for the first 15 years and 1.125% for every additional year up to a maximum of 60.0%.

 

A: To qualify for full pension,

  • You must be at least 60 years and
  • You must have made a minimum contribution of 180 months (15 yrs.) under Act 766 and 240 months (20 yrs.) under PNDCL 247.

 

BASIS FOR CALCULATION OF OLD AGE PENSION

  • Age
  • Average of Best 36 months / 3 years’ Salary
  • Earned Pension Right – Rating for the number of months you have contributed to the Scheme.

 

You can earn a “pension right” between 37.5% and 60% depending on the number of months contributed at the time of retirement (e.g., the minimum contributions of 180 months gives a “pension right” of 37.5%). Every additional month over the 180 months attracts an additional percentage of 0.09375% or 1.125% for one (1) year, respectively.

TO CALCULATE YOUR PENSION

Multiply your best 36 months (3 years) average salary by your “pension right”. The Pension Right is 2.5% for each year of contribution for the first 15 years and 1.125% for every additional year up to a maximum of 60.0%.

 

Years of Contribution 15 16 17 18 19 20 21 22 23 24 25
Pension Right (%) 37.50 38.63 39.75 40.88 42.00 43.13 44.25 45.38 46.50 47.63 48.75

 

 Years of Contribution 26 27 28 29 30 31 32 33 34 35 36 & above
Pension Right (%) 49.88 51.00 52.13 53.25 54.38 55.50 56.63 57.75 58.88 60.00 60.00

 

Source: www.databankgroup.com

 

Download Pensions Act

National National Pension Act 766

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