Benefits - Invalidity Grant/Benefit

 

I’m differently abled. Am I eligible for an Invalidity Grant or Pension? And what’s the difference?

To qualify for a grant you must:

• be under the pensionable age
• be permanently incapable of working because of a specific disease or physical or mental disablement
• have at least 50 contributions paid or credited to your account.

To qualify for a pension you must:

• be under the pensionable age
• be permanently incapable of working because of a specific disease or physical or mental disablement
• have at least 150 contributions paid to your account.

How is the grant worked out?

Your grant is equal to 6 weeks out of every 50 (weekly) contributions credited to your account.
If your earnings, and therefore your contributions vary from week to week, you add the contributions paid over
the 50-week period, and divide them by 50. You will get the average weekly contribution. This will then be
multiplied by 6.

For e.g.

For 50 varied contributions totalling $1,000,

$1,000 ÷ 50 = $20 average weekly contribution

$20 x 6 = $160.

$160 will be your grant for the 50-week period.

Should your 50 weekly contributions be equal in amount, simply multiply one week’s contribution by 6.

How is the pension calculated?

The old basis computation is as follows:

Contribution weeks 1,100 weeks (22 years)
Annual Average (best 5 years) $35,500
Aggregate earnings after first 500 $426,000
Basic annual pension ($35,500 x 40%) = $14,200
Supplementary pension ($426,000 x 1%) = $4,260

Total Annual Pension ($14,200 + $4,260)

= $18,460

Weekly Pension (= $18,460/52) = $355

The new basis computation is as follows:

Contribution weeks 1,100 weeks (22 years)
For NIS purposes 50 weeks is equivalent to 1 year.
Annual Average (best 5 years) $35,500
2% for each year for first 20 years and 1 ¼ % for all subsequent years.
20 x 2% x $35,500 = $14,200
2 x 1 ¼ % x $35,500 = $887.50
Total Annual Pension = $14,200 + $887.50
= $15,087.50

Weekly Pension = $15,087.50/52 = $290.14

The 50/50 basis is as follows:

½ of the “Old Basis” total + ½ of the “New Basis” total
½ of $355 + ½ of $290.14
= $177.50 + $145.07
= $322.57

How long does the pension last?

As long as your period of invalidity.

If invalidity continues until you reach pensionable age, your pension is converted into an Old Age Contributory
Pension of an equal amount.

For more information download the NIS Guide to Benefits booklet which you can view in Adobe Acrobat. If you don’t have Acrobat, click here to download it.

For more information or explanation of terms used? See FAQ or the Glossary in the Information Zone.