First Tier

The first tier basic national social security scheme is a defined benefit scheme and will be managed by a restructured SSNIT.

It will be based on contributions paid by the employed (not self-employed), calculated as a percentage of pay.

* Entry Age – 15 years (min) and 45years (max) – only for new entrants

(Age 45+ to enter mandatory 2nd tier – see section63 (8) of Pensions Act)

* Age Exemption – 55 years and above exempted (option to join)

* Minimum and Maximum Contributions

* Investment of Funds – investment policy, permitted investments, external investments ( section 67, 68 of Act)

Improved Benefits and Qualifying Conditions

– Qualifying period reduced from 20 to 15 years (section 76 of Act)

– Survivors benefits period increased from 12 to 15years (section 78 of Act)

– Hazardous employment benefit – underground miner to retire at age 55 with full retirement benefit (section75, 76 of Act)

– Tax Relief on Contributions – 13.5%