Voluntary Contribution
VOLUNTARY CONTRIBUTORY COVERAGE FOR OVERSEAS NATIONALS
FREQUENTLY ASKED QUESTIONS
Question: When was this coverage introduced?
Answer: The Legislation governing the Voluntary Contributory Coverage was enacted in 1997. However, this applied only to local nationals. Hence, in 2001 coverage was extended to Vincentians living abroad.
Question: What are the reasons behind this coverage?
Answer:
1) This is to afford Vincentians residing abroad the opportunity to continue paying their NIS contributions, or to become members of the NIS, particularly the undocumented Vincentians who cannot contribute to social security in the Country where they reside.
2) Also this is to provide Vincentian nationals in the Diaspora the opportunity to contribute to national development.
Question: At what age can one get registered as a Voluntary Contributor?
Answer: Persons must be between ages 16 and 60.
Question: How can overseas nationals get registered as a Voluntary Contributor?
Answer:
- Persons are required to complete an application form to be accompanied by copies of their passport or birth certificate, and marriage certificate in the case of married women.
- The application form can be obtained at Consulate offices abroad, or at the NIS Office. Persons can also download the form from our website at http://nissvg.org/sites/default/files/VC_form_REVISED_OVERSEAS.pdf
- Persons can also have a relative or friend complete the application form on their behalf.
Question: Are there different income and payment categories from which persons can choose?
Answer: Yes there are 5 different income categories for overseas nationals. However, Persons are required to choose a level that is in line with their monthly earnings. The lowest category is a monthly income level of EC$1,027 and the assigned contribution is EC$70.31. The highest category is a monthly income level of EC$3,716.64 and the monthly payment is EC$254.21.
Question: If persons choose a particular category can they change or do they remain in this category indefinitely?
Answer: Yes persons can make the appropriate change as their income level changes. But this can only be done after a 6 month period.
Question: How can the overseas nationals pay their contributions?
Answer: The procedure for the payment of contributions is the one best suited to the contributor. Payments can be made on a monthly or quarterly basis. Some suggested methods of payments are:
- Electronic transfers to the NIS bank account.
- Establishing a bank account in St. Vincent making standing order provisions for payments to the NIS
- Direct payments using postal orders or bank drafts (personal cheques are not accepted).
Please note the following:
- Persons between the age of 50 and 55 years, who are contributing for the first time, should select a quarterly income category of EC$1728 (category D) or below, and should make retroactive payments.
- A retroactive payment period from the year 1997 to present is allowed.
- Contributors should not miss payment for more than 2 consecutive quarters.
Question: What are the benefits that a Voluntary Contributor can claim from the NIS?
Answer: They are entitled to age, and survivors’ Benefits, plus funeral grant.
Age Benefit: This benefit provides persons with financial support at retirement. In order to qualify, persons must be insured with the NIS and have attained age 60, and they must have paid at least 500 weekly contributions.
Funeral Grant: provides financial assistance for the burial of the deceased insured person. It is also paid on the death of an invalidity or age pensioner, or his/her spouse or a dependant child (under age 16 or under age 18 if attending school, or a disabled child). The deceased insured person must have paid at least 26 contributions. The Benefit is paid to any person who has met the funeral expenses of the deceased.
The current funeral grant is EC$4,330.00. With respect to the death of a spouse/common law spouse, the amount payable is EC$2,165.00.
A Survivors’ Benefit is payable to the survivors upon the death of the insured deceased person, if he/she had paid at least 150 weekly contributions. The survivors include a spouse or children who are still attending school. If there are no spouse and children, then the benefit would be paid to a dependent parent who is 60 years or over.
Please refer to the General Benefits section for further information relating to these Benefits.
VOLUNTARY CONTRIBUTORY COVERAGE FOR LOCAL NATIONALS
The Legislation governing the Voluntary Contributory Coverage for local nationals was enacted in 1997.
Purpose
This coverage is designed for persons who have ceased working in insurable employment in St. Vincent and the Grenadines, but wish to continue paying their NIS contributions.
Qualifying Conditions
Any person who:
- Is sixteen years or over and under the age of sixty
- Ceases compulsory insurable employment in St.Vincent and the Grenadines.
- Is a citizen of St.Vincent and the Grenadines and resides in the State
Benefits Available to Voluntary Contributors:
- Age Benefit
- Survivor’s Benefit
- Funeral Grant
Registration Procedures
Persons are required to complete an application form to be accompanied by copies of the birth certificate or passport and marriage certificate in case of married women
The Payment of NIS Contributions
- The current contribution rate is 6.84%
- Persons are required to pay contributions on their last monthly salary.
- Payments should be paid to the NIS office on a quarterly basis, and must be fully paid before reaching age 60.
- Persons must have at least 500 contributions by age 60. Hence, persons older than age 50 are allowed to make retroactive payments to satisfy this condition
