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Survivors’ Benefit

Survivors’ Pension

What is it?

A Survivors’ Benefit is payable to survivors of a deceased insured person who at the time of death:

  1. could have satisfied the conditions for an invalidity pension or grant
  2. was receiving invalidity or Age Pension;
  3. was entitled to Age pension or grant.

Who Qualifies?

The Widow –

  • The deceased insured person should have paid at least 500 weekly contributions into the system.
  • If she had been married to or had cohabited with the deceased insured person for at least three (3) years.
  • If she is under the age of fifty-five (55) she will be paid the benefit for one year unless she is pregnant at the time of her husband’s death or if she has children whose ages at the time of her husband’s death will make her eligible for a pension for life.
  • If she is fifty-five (55) years of age or over she will receive a pension for life.
  • If she is under fifty-five (55) years of age and she is an invalid, she will be paid a Survivor’s pension during her invalidity.  She will continue to receive a pension for life if her invalidity ceases and she is over fifty-five (55) years.

The widow will continue to receive benefits as long as she satisfies the conditions or until she remarries or cohabits.

The widower –

  • If he had been married to, or had cohabited with the deceased insured person for at least three (3) years.
  • If he is fifty-five (55) years of age or over he will receive a pension for life.
  • If he is under fifty-five (55) years of age and he is an invalid, he will be paid a Survivor’s pension during his invalidity.  He will continue to receive a pension for life if his invalidity ceases and he is over fifty-five (55) years.

The widower will continue to receive benefit as long as he satisfies the conditions or until he remarries or cohabits.

A child –
Natural, Adopted, Step or Illegitimate, unmarried, was living with the deceased, was totally maintained by the deceased.

The child will receive benefit up to the age of 18 or up to age 21 if in full-time education. If the child is an invalid, he/she will receive the benefit for life.
There are two types of Benefit:

  • Survivors’ Pension
  • Survivors’ Grant

What is the amount?

The following criteria must be considered:

  1. Widow/Widower – 75% of the age or invalidity pension in payment to the deceased insured person at the date of his death.
  2. If the deceased person was not in receipt of age or invalidity pension he/she is paid 75% of the age pension earned up to the date of death.
  3. Children – 25% of the age or invalidity pension in payment to the deceased person at the date of death; or amount of age pension earned up to the date of death.
  4. Orphan pension – The amount payable is fifty percent (50%) but the rate cannot be greater than the amount of the age or invalidity pension that would have been payable to the deceased insured person at the time of death.
  5. Where there is no spouse, the full amount of survivors’ may be paid to the eligible children

Calculation

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

Best 5 years = $18,720 + $18,720 + $18,720 + $18,720 + $18,720
Average = $93,600/5 = $18,720
Annual Benefit Rate = 18,720 x 30% = 5,616
Weekly Benefit Rate = 5,616/52 x 75% = $180.00 x 75% = $81.00

The minimum Survivors’ Pension for surviving spouse is $52.50 per week.

Survivors’ Pension for children = Deceased weekly benefit rate x 25% = $108 x 25% = $27.00

If there is one surviving child he/she will receive $27.00 per week. Orphans will receive 50% of the deceased weekly benefit rate.

However, if there are 2 or 3 children each child will receive $17.50 because the minimum survivors’ benefit per child is $17.50 per week.

If the amount available for pension is insufficient for distribution to all children, the Director has the authority to decide which children should be awarded the pension.

What are the Benefits For Surviving Parents?

A benefit is payable to a surviving parent on the death of an insured person where

  1. there is no surviving spouse or dependent children
  2. the parent received at least 50% of his/her income from the insured person
  3. where the parent is at least 60 years of age

Amount Of Benefit

50% of the age or invalidity pension in payment to the deceased person at date of death, or amount of age pension earned up to the date of death.

Benefit Calculation of Surviving Parent (an example)
Take weekly benefit rate and find 50%
$108 x 50% = $54 per week

How Can You be Disqualified?

Survivor’s payment is not payable for marriages contracted ater the deceased received an age pension or invalidity pension.

Survivors’ Grant

What is it?

This is a lump sum payment made to the survivors of the deceased insured person.

How and When do You Claim?

A claim for Survivors’ Benefit should be made within three (3) months of the date of death of the insured person and should be accompanied by evidence of the relationship (marriage, birth and death certificates, etc.).

Please note the following:

  1. The pension will be paid to 3 children at one time.
  2. The children will receive the benefit until they are 18 or 21 if still in full-time education.
  3. If there are no children and the surviving spouse is under 55 years, the benefit will be paid for 1 year. However, if there are children the spouse will receive the benefit until the children reach age 18 or 21 if still in school.
  4. If the surviving spouse is 55 and over when child/children turn 18/21 the benefit will be paid for life. However, if the surviving spouse has contributed to the scheme, he/she will be eligible for an age pension at retirement at which time the higher of the two benefits will be paid.
  5. The benefit will cease upon remarriage/cohabitation or if the widow bears a child.

Who Qualifies?

The insured person should have paid at least 50 weekly contributions.