NIS Old-Age Contributory Pension/ Grant Benefits Barbados
Organization : National Insurance Scheme (NIS)
Facility : Old-Age Contributory Pension/Grant Benefits
Country : Barbados
Website : https://www.nis.gov.bb/old-age-contributory-pension/
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What is NIS Old-Age Contributory Benefits?
Old-Age Contributory Benefit may either be a grant or pension. If a person qualifies for an Old-Age Contributory Pension, an Old-Age Contributory Grant is not payable. As a result of Pension Reform and the introduction of flexible NIS retirement / pensionable ages, persons may retire on a NIS pension at any age from 60 to 70. To ensure that there is no financial advantage as a result of choice of retirement age; persons opting for early retirement will receive a reduced pension.
Related / Similar Scheme : NIS Barbados Non-Contributory Old-Age Pension
Late retirement up to a limit of age 70 would result in increases in pension at a percentage equal to the rate for decrease for persons opting for early retirement. The adjustment rate has been set at 0.5% for each month earlier or later than the NIS pensionable age. A person’s pension at pensionable age is not tied to retirement. Pensionable age is currently 67 years, effective from the 1st January 2018.
Eligibility of NIS Old-Age Contributory Benefits
Old-Age Contributory Grant:
To qualify for an Old-Age Contributory Grant, one must:
** have attained pensionable age;
** have at least 50 contributions paid or credited to one’s account.
Old-Age Contributory Pension:
The Old-Age Contributory Pension is now available at ages ranging from:
** The NIS pensionable age – currently 67 years;
** Voluntary pensionable age – any age below the pensionable age as low as age 60.
** Late retirement age – any age after the NIS pensionable age but up to 70 years.
In addition, to qualify for NIS pension, one must:
** have at least 150 contributions actually paid to one’s account;
** have at least a total of 500 contributions paid or credited to one’s account.
How is Old-Age Contributory Benefits Computed?
Old-Age Contributory Grant:
The amount of an old-age contributory grant is a lump sum equal to 6 weeks average insurable weekly earnings for each 50 contributions actually paid or credited to the insured person’s account.
Average insurable weekly earnings for the purpose of Old-Age Contributory Grant is the sum of the insurable earnings on which contributions were based, divided by the number of weeks of contributions.
Old-Age Contributory Pension:
There are currently three (3) bases for calculating NIS Pension. The calculations are based on the age of the person applying for pension at 31st December 2002.
** For persons aged 56 or over – on 31st December 2002, their pension would be calculated using the old basis.
** For persons aged 47 and over but less than 56 years on 31st December 2002, their pension would be calculated using 50% new and 50% of the old basis.
** For persons under 47 years – at 31st December 2002, their pension would be calculated using the new basis.
All other pensions would be calculated using 50% new and 50% of the old basis. Persons born on or before 31st December 1946 will stay on the old basis. Those born on 1st January 1956 or later go to the new basis. All those in between go on the 50/50 basis.
Old Basis:
The annual rate of pension is 40% of the average annual insurable earnings of the insured person, supplemented by 1% of the total insurable earnings on which contributions were based subsequent to the first 500 contributions paid or credited, but subjected to a maximum of 60% of average annual insurable earnings (at pensionable age), and a minimum pension of currently $243.00 per week.
Average annual insurable earnings for the purpose of an old-age contributory pension is the sum of the insurable earnings on which contributions were based during the best five contribution years of the insured person’s contribution life, divided by 5. Where the contribution years are less than fifteen, the total number of contribution years will be used.
Supplemental Pension:
The supplemental pension is computed by totaling the weekly insurable earnings represented by the contributions in excess of the first 500 and finding 1% of the amount.