Invalidity Benefit


To qualify for this Benefit, persons must

  1. Be under NIS pensionable age
  2. Per permanently incapable of undertaking further employment because of a special disease or bodily or mental disablement

An Invalidity Benefit may either be a grant or a pension.

 

INVALIDITY GRANT

In order to qualify for an Invalidity Grant, persons must have at least 50 contributions paid or credited to one’s account.

The amount of invalidity grant is a lump sum equal to 6 times the average weekly insurable earnings of the insured person for each complete 50 contributions paid or credited.

Average insured weekly earnings, of 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

To qualify for an Invalidity Pension one must have paid at least 150 contributions. The annual rate of Invalidity Pension starts from 30% of the average annual insurable earnings of the insured person and this rate is increased by 1% for every additional 50 contributions and may go up to a maximum 60%.

An average of the 5 best years earnings over a person’s career, is used in computing the Pension. This amount is then multiplied by the percentage rate earned over the years. For instance, if persons contributed 150 contributions, then 30% will be used to compute the benefit.

The current minimum Invalidity Pension is $70.00 per week.

The Pension continues in payment so long as the invalidity lasts. However, if the invalidity continues when the insured person reaches pensionable age, then the Invalidity Pension is converted into an Old Age Pension.

Additionally, if a person qualifies for an Invalidity Pension, an Invalidity Grant is not payable.

The benefit is paid to anyone who has been medically declared an invalid and who is likely to be disabled and is under pensionable age. This must be validated by the NIS Medical Board.

 

INVALIDITY PENSION CALCULATION

Average annual insurable earnings = Best 5 years salary over career x (30 to 60%)/No. of weeks in year = Avg. annual insurable earnings

Weekly rate = Average annual insurable earnings x (30 to 60%)/No. of weeks in year

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

Monthly pension = weekly rate x no. of weeks in month

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 * 30% = $108

Weekly pension = $108.00 (to the nearest multiple of 10)
Monthly pension = $108.00 x 4 = $432.00

 

WHEN TO CLAIM

A claim for Invalidity Benefit should be submitted within 3 months of the date on which an insured person is medically certified as an invalid.