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%