Learn How National Pension Act Distributes A Three-Tier Pension Scheme

SSNIT PENSIONS is a basic pension plan for all Civil and Public Servants, Employees in Private Sector, Professionals,Traders, Artisans, Farmers and also the self employed. The National Pension Act 766 has introduced a three-tier pension scheme comprising

==> First Tier- A Mandatory Basic Social Security managed by SSNIT 
==> Second Tier- A Mandatory fully funded and privately managed occupational scheme
==> Third Tier- A Voluntary fully funded and privately provident fund and personal pension scheme
               
                          How is your Contributions Disburse 

== Under the national pension Act 766, the WORKER contributes 5.5% of his/her basic salary and EMPLOYER adds 13% of the worker's basic salary, making a total of 18.5% 
==> Out of 18.5% the employer remits 13.5% within 14 days after the end of each month to SSNIT
==> Subsequently, SSNIT remits 2.5% out of 13.5% to National Health Insurance Authority (NHIA)  
==> SSNIT manages only 11% for you as your pension funds
                The Distribution is as Follows

Recipient Institution	Type of Scheme	Beneficiary	Percentage (%)	Cumulative (%)
SSNIT	1ST Tier	SSNIT	11%	13.5%
	1ST Tier	National Health Insurance Scheme	2.5%
Private Scheme Managers	2ND Tier	Private Scheme managers	5.0%	5.0%
		Total	18.5%	18.5%

Watch out for basis for calculation of pension Benefits by SSNIT

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