Age Benefit

Full Age Pension


What is it?

A full age pension is payment to an insured person who is between the ages of 60 and 65 and who has paid or been credited with more than 500 contributions. NIS provides three types of pensions. The age pension is one of these three. The normal pension age will increase gradually from 60 to 65, over a 15 year period as follows:

Time period Age at which you receive pension
2014 to 2015 60
2016 to 2018 61
2019 to 2021 62
2022 to 2024 63
2025 to 2027 64
2028 and onwards 65
Year of birth Pensionable age
1955 and before 60
1956 – 1957 61
1958 – 1959 62
1960 – 1961 63
1962 – 1963 64
1964 and after 65

How Can You be Disqualified?

Being imprisoned will result in termination of pension but the Board has discrentionary powers to pay one half of such pension to the dependents of the imprisoned age pensioner.

Early Age Pension


What is it?

An individual may receive his/her pension as early as age 60. However, the pension would be reduced by 6% for each year you retire before the normal pensionable age.

For Example:

If your pensionable age is 65 and you retire at 64, your pension will be reduced by 6% (12*0.5%). This is because you retire 12 months before pensionable age.

Weeks Required For Full Pension Eligibility

The minimum required weeks of contribution will gradually increase from 500 weeks (10 years) to 750 weeks (15 years) as follows:

Time period Minimum required weeks
2014 to 2015 500
2016 to 2018 550
2019 to 2021 600
2022 to 2024 650
2025 to 2027 700
2028 and onwards 750

An example of a current Pension calculation

Best 5 years salary over career/5 = Average Annual Insurable Earnings

Weekly rate = Average Annual Insurable x (30 to 60%)/No. of weeks in the year
Monthly pension = Weekly rate x no. of weeks in the month

YEARS ANNUAL SALARY WEEKLY CONTRIBUTIONS
1997 12,480.00 52
1998 12,480.00 52
1999 12,480.00 52
2000 18,720.00 52
2001 18,720.00 52
2002 18,720.00 52
2003 18,720.00 52
2004 18,720.00 52
2005 18,720.00 52
2006 18,720.00 52


Weekly pension = $108.00 (to the nearest multiple of 10)
Best 5 years = $18,720 + $18,720 + $18,720 + $18,720 + $18,720

Average = $93,600/5 = $18,720
Weekly Pension at 30% = $18,720/52 x 30% = $108

Monthly pension = $108.00 x 4 = $432.00

Please note the following:

  1. The current minimum weekly rate of a pension is $70.00.
  2. A pension is currently calculated on the best three in the last 15 years.
  3. A full pension starts from 30 to 60%.
  4. This rate is increased by 1% for every 50 contribution weeks over the minimum qualifying weeks.
  5. The insurable earnings limit is $4,333 monthly thus the maximum salary that qualifies for pension is $4,333 per month or $1,000 per week.
  6. A claim for age pension should be submitted within three (3) months of the claimant’s retirement age.
  7. A pension is paid in multiples of the nearest ten cents.

Reduced Age pension


What is it?

Insured persons can qualify for a reduced pension between 2016 and 2027. The conditions for qualification:

  1. Insured person must attain pensionable age.
  2. Paid or credited at least with 500 weekly contributions but less than the minimum qualifying weekly contribution.

Formula:

The reduced pension shall be the old age pension at the pensionable age multiplied by the weekly contribution paid or credited and divided by the applicable qualifying number of weekly pensions in that year.

An Example:

A person who attained the pensionable age of 63 in 2022 but has only 550 contributions would receive a pension that is proportionately reduced:
550/650 x 30%x Average Wages.
650 is used because it’s the minimum qualifying weeks for a pension in 2022.

Age Grant


What is it?

If persons are not qualified for the Age Pension, then they can receive a lump sum payment called an Age Grant, if they have paid at least 50 weekly contributions. A lump sum of six (6) times the average weekly wages for each 50 weekly contributions will be paid.

ADDRESS

  • NIS Building
  • Upper Bay Street
  • Kingstown
  • St. Vincent and the Grenadines

CONTACT US

  • Phone:
    (784) 456-1514
  • Fax:
    (784) 456-2604
  • E-Mail:
  • Toll Free:
    (855) 479-1920
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