Long Term: Retirement Benefit
RETIREMENT PENSION (Four-Weekly Cash Benefit)
Retirement Benefit (Grant or Pension) is paid to insured persons who are 65 years of age (and older) or 60 to 64 and not employed.
PENSIONERS: In 2002 existing pensions were increased by at least 20%. Minimum pensions have increased from $1,820 to $2,444 yearly.
All new pensions are more substantial and realistic.
HOW TO QUALIFY
|Be an insured person: between 60 and 64 years and not employed; or 65 years or older (whether employed or not)||Submit completed claim for Retirement Benefit on prescribed form(RB1)signed and dated by the insured person|
|Have a total of 500 paid and credited contributions (Contribution Requirement for a pension)||Present Social Security card, passport or birth certificate when making claim|
|Have 150 paid contributions||Provide summary of employment history on prescribed form (ED1)|
|If the contribution requirement is not met, a Retirement Grant is paid.||Must provide bank account or an account number from any other financial institution.|
|A minimum of 26 paid contributions is required for a Retirement Grant to be paid.||Claimants 60-64 years must submit written declaration stating that he/she is not employed. Should claimant 60-64 return to work he/she needs to inform Social Security and declare salary and method of pay (hourly, daily, weekly, monthly)|
|If 65 years old, submit claim within 13 weeks after 65th birthday. If 60-64 years, submit claim 13 weeks after date employment ceased.|
|If claim is not submitted within the required 13 weeks a good reason must be given by the insured contributor|
|No sum shall be paid for any period more than 26 weeks before the date on which the claim is made|
RATE AND PAYMENT OF BENEFIT
Sum of Insurable Earnings in best 3 years of contributions ÷ 150 x 30% = weekly pension
Pension obtainable accumulates:
• First 10 years at 3% per year = 30%
• Next 5 years at 2% per year = 10%
• Next 20 years at 1% per year = 20%
Maximum pension payable:
60% of average weekly insurable earnings.
Minimum Pension is
The pension is for
the lifetime after age 65 of the insured person.
Payment of benefit starts
as of 65th birthday; If claimant is 60-64 years, the payment of benefit starts as of the following day when employment ceased.
A person can get a
maximum pension after 35 years of contributions to the Scheme.