The payroll harmonization process involves the creation of an automated database by Government which would from-time-to-time enable the National Social Security and Welfare Corporation (NASSCORP) to have hands-on statistics on the number of prospective pensioners.The payroll harmonization process involves the creation of an automated database by Government which would from-time-to-time enable the National Social Security and Welfare Corporation (NASSCORP) to have hands-on statistics on the number of prospective pensioners.
According to NASSCORP's Assistant Director of Public Information, Education and Training, Winston Jah, the new policy further safeguards the financial sustainability or financial future of public sector workers.
Providing details about the retirement process, Jah told LINA on Monday that employees born before February 1, 1980 are required to make a total of 100 monthly contributions for the period eight years and four months, while employees born after 1980 are required to make a total of 144 monthly contributions for 12 years.
"For workers born after 1980, their increment in pension percent will commence after the 144 months contributions," he said.
NASSCORP Boss. Mr. Von Ballmoos
According to NASSCORP, pension is paid at the rate of a minimum of 25% of the employee's gross income or maximum 40% of the gross income of the employee, with a condition being that an employee who was born before 1980 and completes his 100 monthly contributions, earns 1% for every 10 months contributions, and this enables that employee to have 1% added to pension.
Further, the institution says that in this instance, the employee will move from 25% to 26%.
Every 10 months of contributions earns an employee 1% after the required 100 months for those born before 1980, meaning that depending on how many extra contributions a worker makes, she/he could have between 25% - 40% in pension benefit, it also explained.