Invalidity Grant/Benefit
Invalidity Grant/Benefit
INVALIDITY CONTENT
Invalidity Grant/Benefit
An invalidity benefit may either be a grant or pension.
Invalidity Grant
To qualify for an invalidity grant:
- Be under pensionable age;
- Be permanently incapable of undertaking further employment because of a specific disease or bodily or mental disablement;
- Have at least 50 contributions paid or credited to one’s account.
How is an Invalidity Grant Computed?
An Invalidity Grant is a lump sum payment, 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 an Invalidity Grant is the sum of the insurable earnings on which contributions were based, divided by the number of weeks of contributions.
Invalidity Pension
Employed Persons
To qualify for an invalidity pension:
- Be under pensionable age;
- Be permanently incapable of undertaking further employment because of a specific disease or bodily ormental disablement; for so long as the invalidity continues
Have at least 150 contributions paid to one’s account.
How is an Invalidity Pension Computed? (Employed Persons)
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. It is subject to a maximum of 60% of average annual insurable earnings but may exceed 60% of average best three (3) insurable earnings where increases are granted, and a minimum pension of currently $254.00 per week.
Average annual insurable earnings for the purpose of an invalidity pension is the sum of the insurable earnings on which contributions were based during the best three (3) contribution years of the insured person’s contribution life, divided by 3. If the person had been insured for less than fifteen contribution years, then the best three (3) contributions years of that lesser number is used as the basis for the calculation. For self-employed persons the average yearly contributions must be 39.
Self-Employed Persons
To qualify for an invalidity pension:
- The person must be under pensionable age;
- He/she must be permanently incapable of undertaking further employment because of a specific disease or bodily or mental disablement;
- He/she must have at least 150 contributions paid to his/her account;
He/she must have maintained an average of at least 39 contributions a year from the time he/she became insurable as a self-employed person to the time of becoming an invalid.
How is an Invalidity Pension Computed? (Self-Employed Persons)
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. It is subject to a maximum of 60% of average annual insurable earnings but may exceed 60% of average best five (5) insurable earnings where increases are granted and a minimum pension of $254.00 per week. For self-employed persons, the average annual contributions must be 39.
An Important Note about Invalidity Pension
Invalidity pension continues in payment so long as invalidity lasts. However, if invalidity continues when the insured person reaches pensionable age, the Invalidity Pension is converted into an Old-Age Contributory Pension of an equal amount. Invalidity benefit may be paid whilst the recipient is living abroad. Additionally, if a person qualifies for an Invalidity Pension, an Invalidity Grant is not payable.