Retirement Pension

To whom and when is Retirement Pension payable?
What is the meaning of “substantial employment” for the purpose of retirement conditions?
What are the contribution conditions for the payment of Retirement Pension?
Special credits for persons over 48 years of age on April 6, 1992
What is the rate of Retirement Pension?
For which period and how is Retirement Pension paid?
Retirement Grant
What is the amount of Retirement Grant?
How can an insured person claim Retirement Benefits?
What is the time limit for claiming a Retirement Benefit?
Duplicate rights
Appeals

To Whom and When is Retirement Pension Payable?

A Retirement Pension is payable to an insured person, whether employed, self-employed, or a voluntary contributor, who has reached the age of 60 years, and retires from insurable employment or shows that he/she is no longer substantially employed and satisfies the contribution conditions.

An insured person who does not satisfy the contribution conditions for Retirement Pension at age 60 will become entitled to a pension from the first day on which he/she satisfies the conditions. The retirement conditions cease to apply when the insured person reaches the age of 65.

What is the meaning of “substantial employment” for the purpose of retirement conditions?

A person is considered to be substantially employed if he is engaged in insurable employment as an employed person, if his earnings from the employment is $40.00 per week or more, or if engaged in insurable employment as a self-employed for 10 hours per week or more.

What are the contribution conditions for the payment of Retirement Pension?

The contribution conditions for Retirement Pension are:

  • that not less than 150 contributions (three years) have been paid by the insured person; -
  • that not less than 500 contributions (ten years) have been paid or credited to the insured person.

Special credits for persons over 48 years of age on April 6, 1992

An insured person who is over the age of 48 years on April 6, 1992 is awarded 50 credits for each year of age in excess of 48 subject to a maximum of 350 credits. These special credits are used only to enable an insured person to qualify for a retirement pension of 30% of his/her average weekly earnings.

What is the rate of Retirement Pension?

The weekly rate of retirement pension for an insured person who has at least 500 contributions paid or credited will be 30% of the average weekly earnings.

For each unit of 50 paid or credited contributions in excess of 500, the amount of the pension shall be increased by 2% of the average weekly earnings up to a total of 750 and by a further 1% of the average weekly earnings for each additional unit of 50 paid or credited contributions in excess of 750 contributions.

The average weekly earnings is the sum of the weekly earnings in respect of the contributions which were paid or credited in the 3 contribution years with the highest earnings immediately prior to the last 10 contribution years before retirement, divided by the number of weeks for which contributions were paid or credited in those 3 contribution years.

The minimum amount of pension is fixed at 30% or $50.00 per week, and the maximum amount is fixed at 60% of the average weekly earnings of the insured person. The amount of pension payable to a person who has paid less than 250 contributions cannot exceed $100.00 per week.

The weekly rate of retirement pension awarded a person under the age of 65 will increase when the person reaches age 65 by 1% of his average weekly earnings for each unit of 50 paid or credited contributions after the date on which the retirement pension was first awarded.

The monthly amount of pension can be found by multiplying the weekly rate by 52 and dividing the result by 12.

For which period and how is Retirement Pension paid?

Retirement pension is payable monthly for life to persons attaining the age of 65 who satisfy the contribution conditions. Persons between the age of 60-65 will be eligible to receive the pension only during periods when not substantially employed. These persons are obligated to inform the Board of all periods in which they are substantially employed.

Retirement Grant

An insured person who reaches age 65 and does not satisfy the contribution conditions for a Retirement Pension, but has paid at least 50 contributions (one year) will be entitled to a Retirement Grant, which is a one-time lump sum payable to the insured person.

What is the amount of Retirement Grant?

The retirement grant is equal to 2 times the average weekly earnings for each unit of 50 contributions paid or credited.

How can an insured person claim Retirement Benefits?

The insured person can claim Retirement Pension or Retirement Grand by submitting a completed application on the special form approved by the Board to the nearest National Insurance Board Office along with his/her birth certificate.

What is the time limit for claiming a Retirement Benefit?

Claims for retirement benefit must be submitted within 3 months from the date of which the claimant becomes entitled to the benefit. If the claim is submitted late, in the case of a Pension, payment is made 3 months in arrears from the date of the claim. In the case of a Grant, the claimant loses his right to the Grant. In exceptional cases however, where the claimant can prove that there was good cause for the delay in claiming, the prescribed time of 3 months may be extended to 6 months.

Duplicate rights

Where an insured person is entitled to two or more benefits paid periodically at the same time he will be entitled to receive the benefit which is payable at the highest rate.

Appeals

Claims for benefits are decided by the Director. A person who disagrees with the decision of the Director may appeal to an Appeal Tribunal within 21 days from the date of the decision. A further appeal from a decision of an Appeal Tribunal to the Supreme Count is possible on a point of law only.