“Let’s reform for greater security!”
NIS is celebrating 30 years of existence. This signifies that we are a maturing plan. It is therefore essential for us to assess our current pension system and make necessary changes so that we can continue to fulfill our mission to adequately provide social security for the citizens of Saint Vincent and the Grenadines. So let’s reform for greater security!
Parametric reform involves changing one or more of the parameters of the pension system. Parameters include contribution rate, pensionable age, rate of benefits etc.
We need to reform in order to ensure SAFETY:
Pensions will be increased as follows:
|YEAR OF PENSION AWARD||RATE OF INCREASE|
|1 Jan 2010 to 31 Dec 2010||1.5%|
|1 Jan 2009 to 31 Dec 2009||3.0%|
|31 Dec 2008 and before||4.5%|
|CLAIM TYPE||PREVIOUS AMOUNT||PARAMETRIC INCREASE|
|EMPLOYMENT INJURY FUNERAL GRANT||$4,330||$4,525|
|NON-CONTRIBUTARY FUNERAL GRANT||$2,165||$2,262.50|
The age entitlement for a Survivors’ benefit for a child will increase from 16 to 18 years, and continuing until 21 if in full time education.
The contribution rate will be increased from 8% to 10% from January 1, 2014
(age to receive your NIS pension)
The normal pension age will be gradually increased from 60 to 65, over a 15 year period as follows:
|YEAR OF BIRTH||PENSIONABLE AGE|
|1955 and before||60|
|1964 and after||65|
An individual may receive his/her pension as early as 60. The pension would be reduced by 6% for each year you retire before normal pensionable age.
The minimum required weeks of contribution will be gradually increased from 500 weeks ( 10 years) to 750 weeks ( 15 years) as follows:
(wages used to calculate pension)
The reference earnings will be adjusted from the “best 3 year” average in the last 15 years to the “best 5 years” of earnings in the system.
(rate of pension entitlement for each year of service)
The rates for full pension payment will still range between 30% and 60%. The following adjustment, however, will be made: