Learn How National Pension Act Distributes A Three-Tier Pension Scheme Fresh Deals Alert

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
Percentage (%)
Cumulative (%)
1ST Tier


1ST Tier
National Health Insurance Scheme
Private Scheme Managers
2ND Tier
 Private Scheme managers


Watch out for basis for calculation of pension Benefits by SSNIT

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