The ailment and inability to work must be assessed by the NIS Medical Board. To qualify for an Invalidity Pension, the insured must be under pensionable age and must have paid or been credited with 150 contributions.
The amount is based on the number of paid or credited contributions and can range between 30% and 60% of the average weekly insurable earnings. 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 to an Old Age Pension of the same amount.
Additionally, if a person qualifies for an Invalidity Pension, an Invalidity Grant is not payable.
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.
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
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.
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.
Calculate the sum of the last 50 weekly insurable earnings before incapacity and divide it by sixty. This value is then multiplied by 6 for each complete “50 contributions submitted.”
