Invalidity Pension

Who can receive Invalidity Pension?
What are the contribution conditions for the payment of Invalidity Pension?
How much is Invalidity Pension?
Supplementary benefit
Minimum Invalidity Pension
Special Credits
How do you apply?
What is the time limit for claiming Invalidity Pension?
How payment is made
Appeals

What We Mean By “INVALIDITY”?

It is very important to understand how the National Insurance Board defines “invalidity.” Invalidity under the National Insurance Scheme is based on your inability to work. You will be considered for Invalidity Pension if you cannot do the work you did before, and if you cannot adjust to other work because of a specific disease or bodily or mental disablement, which is likely to be permanent. An insured person claiming for Invalidity Pension must have been deemed incapable of work at least 26 weeks prior to the week in which the benefit is claimed.

Who Can Receive Invalidity Pensions?

Invalidity Pension can be paid to any insured person between the age of 16 and 60,who becomes an invalid and satisfies the necessary contribution conditions. An insured person can receive Invalidity Pension benefit until age 60. When he or she reaches 60, the Invalidity Pension automatically converts to Retirement Pension, but the amount remains the same.

What Are The Contribution Conditions For The Payment Of Invalidity Pensions?

To qualify for Invalidity Pension, the contribution conditions are:

  • that the insured person has paid at least 150 contributions into the scheme;
  • that he or she has at least 60 contributions or credits in the last 3 consecutive contribution years in which he or she became an invalid; and
  • that he or she has 8 contributions or credits in the first 13 weeks of the last 26 weeks immediately before the week in which incapacity leading to permanent incapacity commenced.

How Much Is Invalidity Pension?

The weekly rate of Invalidity Pension payable to an insured person who has paid a total of 500 contributions or credits is 30% of his or her average weekly earnings and will increase based on the amount of contributions paid in excess of 500 contributions.

Here is how Invalidity Pension is calculated:

Step 1 – We use the last three (3) contribution years to calculate your average weekly earnings.
Step 2 – To find your average weekly earnings, we add the earnings for the three (3) years in step1 and divide the total by the number of weeks for which contributions were paid for that period.
Step 3 – We multiply your average earnings by 30%.

As pension cheques are paid on a monthly basis, we convert the weekly benefit to monthly by multiplying the weekly rate by 52 and dividing the result by 12.

Supplementary Benefit

If upon calculating Invalidity Pension we find that you have more than 500 contributions, the initial pension rate of 30% of your average weekly earnings may increase up to a maximum of 60%. The initial pension rate plus the supplement will be calculated as follows:

For every 50 contributions above the initial 500, the pension will increase by 2%, up to 750 contributions. For example, if you have 750 contributions, your pension would be 40% of your average weekly earnings; this is calculated as follows:

1. (750-500) ¸50 = 5
2. 5 x 2% = 10%
3. 30% + 10% = 40%

For every 50 contributions above 750, the pension will increase by 1%. However, no matter how many units of 50 contributions you have above 750, the maximum Invalidity Pension amount is fixed at 60% of the average earnings. If you have 950 contributions, your calculation will be as follows:

1. 750 = 40%
2. (950 – 750)÷50 = 4
3. 4 x 1% = 4%
4. 40% + 4% = 44%

Minimum Invalidity Pension

If after having done our calculations, we find that your weekly Invalidity Pension is less than $50 you will be awarded the minimum Invalidity Pension, which is $62.30 per week or $270.00 per month.

Special Credits

When an insured person satisfies the contribution conditions for Invalidity Pension he or she shall be credited with a contribution for every contribution week falling in the period between the week of invalidity and the week just before he or she reaches the age of 60. These special credits are taken into account only for the purpose of assessing the amount of Invalidity Pension.

How Do You Apply?

You can claim Invalidity Pension by completing and submitting an Invalidity Pension application form, which can be collected at the nearest Board’s office. When you apply for Invalidity Pension we will need certain information to process your application. The information required includes:

  • your National Insurance number
  • your birth certificate or passport;
  • names, addresses, and telephone numbers of doctors, hospitals, clinics and institutions that treated you to date and dates of treatment;
  • a report from your doctors, therapists, hospitals and clinics; and
  • a summary of where you worked and the type of work you did.

What Is The Time Limit For Claiming Invalidity Pension?

Claims for Invalidity Pension must be submitted within 3 months from the date of which the claimant becomes entitled to the pension. If a claim is submitted late, Invalidity Pension can be paid 3 months in arrears from the date of the claim. In exceptional cases the period of 3 months may be extended to 6 months if the claimant can prove that there was good cause for the delay in claiming.

How Is Payment Made?

Invalidity Pension cheques are prepared for beneficiaries on a monthly basis. Cheques can be collected at a convenient National Insurance Board office and must be cashed within 6 months from the date of issue. We are encouraging new claimants to submit the name of their bank along with their current or savings account number so that benefits can be deposited directly to their bank account. The procedure is simple and safe and eliminates the need to collect your cheque at the Board’s office and then take it to the bank to be cashed.

Duplicate Rights

Where an insured person is entitled to two (2) or more benefits paid periodically at the same time, he or she will receive the benefit payable at the highest rate.

Appeals

Whenever a decision is made concerning your benefit, we will send you a letter explaining our decision. If you disagree with our decision, you can ask for your case to be reviewed and an Appeals Tribunal will hear your case. If our decision was wrong, we will change it. However, if you are still dissatisfied with our decision, you may take the grievance to the Supreme Court, but only on a point of law.