Important Updates for GES Employees on Pension and Retirement Planning

Public sector workers, especially employees of the Ghana Education Service (GES), should be aware of the following critical updates related to their pensions, benefits, and retirement planning. This article provides key information that will help contributors avoid complications and make informed decisions as they approach retirement.

1. Tier 2 and SSNIT Lump Sum Payments

Upon retirement, GES employees who are contributors will receive their Tier 2 Lump Sum and, through SSNIT, a monthly pension salary. The Tier 2 component is a crucial part of the employee’s retirement benefits.

2. Past Credit for Pre-2016 Employees

If you joined the service before 2016, you will also be entitled to an additional payment known as Past Credit. This is a lump sum from SSNIT, accrued between 2010 and 2016 when pension funds were held in a suspended account. These funds have since been disbursed to the relevant fund managers, and you will receive them in addition to your Tier 2 Lump Sum at retirement.

3. No Past Credit for Post-2016 Employees

Employees who were appointed to GES in 2016 or later should note that they are not eligible for Past Credit payments from SSNIT. Their retirement benefits will consist solely of their Tier 2 Lump Sum and monthly pension payments from SSNIT.

4. Problems with Inconsistent Dates of Birth

A critical issue that many contributors face is having different dates of birth (DoB) recorded with SSNIT and their workplace. Whether these discrepancies are intentional or accidental, they can create significant complications. For instance, contributors with mismatched DoBs across various systems will have their pension contributions suspended, as the system will treat these as records for different individuals. This can delay or prevent access to your retirement benefits.

5. Ghana Card Date of Birth Discrepancies

Contributors who have inconsistent dates of birth on their Ghana Card compared to their SSNIT records face similar challenges. If this issue is not resolved before retirement, it may prevent you from claiming your benefits altogether.

6. How to Avoid Date of Birth Anomalies

To avoid potential issues, ensure that the dates of birth across all your official documents, including SSNIT records, GES records, and your Ghana Card, are consistent. Any discrepancies should be corrected before retirement to ensure your benefits are easily accessible.

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7. Update Your Beneficiaries Regularly

Contributors are encouraged to regularly update their beneficiary details. You can complete a GESOPS form, scan it, and send it via WhatsApp to the number provided on the form. Regular updates will ensure that in the event of your death, your benefits are paid to the correct beneficiaries.

8. Issues with Tier 2 Beneficiary Input

Unlike SSNIT, when Tier 2 became operational, many contributors did not have the opportunity to designate beneficiaries. As a result, some contributors who passed away did not have their Tier 2 Lump Sums claimed by beneficiaries. It is essential to ensure that your Tier 2 beneficiary details are up to date.

9. Choosing Your Beneficiaries for Tier 2

Your SSNIT beneficiaries are not automatically carried over to Tier 2. You have the flexibility to either retain, amend, or overhaul your list of beneficiaries for Tier 2. If your list of beneficiaries exceeds five (5), you can request an additional form to add more names.

10. Beneficiary Allocation and Consent

There is no limit on the number of beneficiaries you can include, but make sure that the allocation percentages add up to 100%. If all your beneficiaries are minors, it is advisable to include an adult (such as the parent of the children) who can claim the benefits on behalf of the minors. This adult will need a Letter of Consent to access the funds. Without an adult listed, the Tier 2 Lump Sum will be withheld until one of the minor beneficiaries reaches the age of 18.

11. Correct Dates of Birth for Beneficiaries

Ensure that the dates of birth for your beneficiaries are correct and match their official documents, such as birth certificates or the Ghana Card. Incorrect dates could prevent them from claiming the benefits.

12. Voluntary Contributions to Tier 3

For those looking to enhance their retirement savings, Tier 3 is a voluntary contribution option. However, contributors should ensure that their contributions do not exceed 16.5% of their basic salary.

By staying informed and taking action to resolve any discrepancies, GES employees can ensure a smooth transition into retirement and avoid potential delays in accessing their pension benefits. Always review your documents, update your beneficiaries, and seek assistance if necessary.

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