Ama Adaklu retired in December 2022 after contributing to SSNIT for 300 months, working with three different employers. The last 5 years of her annual salary are as follows:

Year Annual Salary (GH¢)
2018 200,000
2019 220,000
2020 250,000
2021 450,000
2022 500,000

Required:
Compute the monthly pension payable to Ama Adaklu. (5 marks

Computation of Monthly Pension Pay
Pension = (Three years average salary × Pension right × Early retirement reduction factor)

Three years average salary = (250,000 + 450,000 + 500,000) / 3
= GH¢400,000

Pension right:

  • Minimum right: 37.5%
  • Additional percentage: (300 months – 180 months) × 0.09375 = 11.25%
  • Total pension right: 48.75%

Since Ama Adaklu retired at age 60 after working for 25 years, there is no early retirement reduction factor.

Pension = 48.75% × GH¢400,000
= GH¢195,000

Monthly pension pay = Pension entitlement / 12 months
= GH¢195,000 / 12
= GH¢16,250