National Insurance Board: Retirement benefit

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Material Information

Title:
National Insurance Board: Retirement benefit
Abbreviated Title:
Retirement benefit
Physical Description:
3 p.
Language:
English
Creator:
National Insurance Board
Publisher:
National Insurance Board
Place of Publication:
Nassau, Bahamas
Publication Date:

Subjects

Subjects / Keywords:
Retirement income--Bahamas.   ( lcsh )
Spatial Coverage:
Caribbean

Notes

General Note:
Retirement benefit is an award made to insured persons who have either retired from gainful employment or who have attained the age of 70 years. Full benefit is paid from age 65, but persons have the option of retiring from as early as age 60 years with a reduced benefit payment.

Record Information

Source Institution:
College of The Bahamas
Holding Location:
College of The Bahamas
Rights Management:
All rights reserved by the source institution.
System ID:
AA00013294:00001


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Full Text

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WHATISRETIREMENT BENEFIT?RetirementBenefitisanaward madetoinsured personswhohaveeitherretiredfromgainfulemploymentorwhohave attainedtheageof70 years. Full benefitispaidfromage65,butpersons havetheoptionofretiringfromasearlyasage60 yearswitha reducedbenefitpayment.SeeEarly Retirement below.QUALIFYING CONDITIONSThereisone basiccontributionconditionfortheawardofRetirement Benefit, andthatisthatyou must have paidatleast 500 contributionsintoNational Insurance sincetheprogrammebeganin1974((2010Amendments).Retirement Benefitispayableforlifetoaninsured personwhomeetsthecontributioncondition ANDis:i)Aged 60to69, retiredfromgainful employment,orifstill working,isnotearning more than halfoftheinsurable wage ceiling ($250 per week/$1083.33 per month);ORii) Aged 70 yearsorolder.EARLY RETIREMENTPersonswhoopttoreceivethebenefit beforeage65years get reduced payments assessedaspercentagesofwhattheywouldhavegottenhadtheyclaimed atage65years. Reduced rates are based onthenumberofmonthsa claimantisawayfromhis/her65thbirthday.Seeback middle pageforreduction rates based on age. Once a person optstoreceive Retirement Benefit before age65years,thereducedrate/percentageassessedissetforlife.HowBENEFITISCALCULATEDTwo factors are usedtodeterminethedollaramountofRetirement benefit. First,theaverageinsured incomeonwhichcontributionswerepaidand/orcreditedmustbe determined.AsofJanuary1,2011, the highest five yearsofinsurable earnings inthelast ten years, are used. (For Pensionable Civil Servants,theinsurableearningforRetirement andotherpensions,isstill cappedat$110 per week, however, thiswillchangeasofJuly1,2013.) SecondIy,thenumberofcontributionspaidandorcreditedintotheprogrammewill be usedtodeterminewhatpercentageoftheaverage insured income will be paid(see"Benefit Rates Based on Contributions" on back middle page). A Working Example: Let's take a65year-oldwhopaid contributionsforatotalof1,040 weeks (20 years).Inthe10 yearsimmediatelypriortoclaimingthebenefit, his highest salary was $300 per week, whichhepaidforsix years. Calculations:His1,040 contributions entitle himto40%ofhis average insured income; his average insured incomeis$300 per week. This worksouttoa Retirement Benefitof$520 permonth($300 x 40% x52weeks /12 months).Itmustbenotedthatthereare many persons whoseentitlementsareverylow. Forthiscause, NIB has aminimumamountpayableasRetirementBenefit.Currently,minimumbenefitawardedat65yearsorolderis$287.82; at 64itis$276.34; andatages 60to63itis$266.50.WHENANDHowTOCLAIMA claimforRetirement Benefit must be made,inwriting,tooneoftheBoard's Local Offices. Claimformsare availableatalloftheBoard's Local Offices and online.HowRETIREMENT BENEFITISPAIDRetirementBenefitispaidasamonthlypension. All recipientsofRetirement Benefit(withtheexceptionofpersonswholive on Bahamian islandswherethereare no banks) are requiredtohavetheirmonthlypayments senttobanksoftheirchoice (in The Bahamas). Payments may also be senttoaccountsat the Post Office Bank, whichhasbranches aroundthecountry. Personswholive on Bahamian islands wherethereare no banks may collecttheirmonthly cheques fromtheirnearestI\IIBlocal office.Todoso,bring along aphotoI.D. and National Insurance card. When sending a representativetopick upyourcheque, make surethathebrings alonganauthorizationletterorform,signed by you,yourNational Insurance card, which must be signed, and aphotoI.D.ofhimself. Pensionerswholive abroad may applytoanyoneofthecommercialbanks in The Bahamastoopenanaccountfortheexpress purposeofdepositingmonthlycheques. The Central Bankofthe Bahamashasdelegatedauthoritytothese bankstofacilitate this process.RETIREMENTGRANTShould you failtomeetthe500contributionconditionfortheawardofRetirement Benefit, a onetimeRetirement Grant will be paidtoyouifyou are65yearsorolder and have paidatleast 150 contributions.Youwillnotneed a separate claimforthat.FURTHER INFORMATION.:. Continuing EligibilitytoreceiveRetirementBenefitYoumustnotifytheDirector,inwriting,assoonaspos sibleaftertheawardofRetirement Benefit,ifyou are younger than 70 years and returntogainful employmentwithanincomeofmorethan$250per

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week.Additionally, once you areinreceiptofRetirementBenefit, you must produce evidence -verification -ofyour continuing righttothe benefit twice each year, duringyourbirthmonthand exactly six months thereafter. Your paymentswillstopifyou failtobe verifiedasindicated.Tobe verified, visitanyoneofNIB'sLocalOfficeswithyourpassportorvoter's card, and your National Insurance card. Or have theNIBVerification Form duly notarized and returnedtothePension Verification Departmentinthe New Providence Local Office. .:. Late Claims -Ifyou are older than65years, you may lose someofyourRetirement Benefitifyou submityourclaimmorethansixmonthsafterthedateyou retire.Ifyou have attainedtheminimumqualifyingageof60yearsbutarenotyet65years, eligibilityforthebenefit will begin when you actually submit your completed claim. .:. RightofAppeal -Ifyou disagreewithany decision made on your claim and have evidenceastowhythedecision should beoverturned,youcanappeal inwritingtothenearestLocalOfficewithin21daysofthedate you were notifiedofthedecision. Appeals are heard and decided by a panelofthree independent practitioners. .:. The National Insurance Act This leaflet gives basicinformationon Retirement Benefit;forfurtherdetails on this benefit and anyotherprovisionofourSocial Security Programme, pleaserefertotheNational Insurance Act & Regulations.Hotline numbers:ortoll-freefromtheFamily Islands: 1-242-300-1394www.nib-bahamas.com/E-mail: info@nib-bahamas.comIReduction Rates Based on AgeIBenefit Rates Based on Contr. Ilbs I Hills Contributions % IromAgeIroll Age 651h651byrsmlhsRaleIb.dayyrs mills Rale500-549 30 550-599 311641199.42%3162 5 81.92%600649 32-2641098.83%3262 4 81.33%650699 33 364998.25%3362 3 80'.75%70074934-464897.67%3462 280.17% 750 799 35-564797.08%35621 79.58%800 84936664696.50%36 62079.00%850-899 37764595.92%37 611178.42% 77.83%900-949 38864495.33%386110 39619 77.25% 950-999 39964394.75%1064294.17%4061 8 76.67% 1,000 1,049401164193.58%41 61 7 76.08% 1,050 1,099 4112640 93.00%42 61675.50%1,100 1,149 4213631192.42%43615 74.92% 1,150 1,199 4314631091.83%44 61474.33%1,200 1,249 441563 9 91.25%45 61 3 73.75% 1,250 1,299 451663 8 90.67%4661 2 73.17% 1,300 1,349461763 7 90.08%47 61 1 72.58% 1,350 1,399 471863 6 89.50%4861072.00% 1,400 1,449 4819635 88.92%49 601171.42% 1,450 1,499 4920 63 4 88.33%50 60 10 70.83% 1,500 1,549SO21 63 3 87.75%51 60 9 70.25% 1/550 1,599 5122 63 2 87.17%52 60 8 69.67% 1,600 1/649 5223 63 1 86.58%53 60 7 69.08% 1,650 1,699 532463 0 86.00%5460668.50%1,700 1,7495425 621185.42%55 60 5 67.92% 1,750 1,799 5526621084.83%56 60 4 67.33% 1,800 1849 562762 9 84.25%57 60 3 66.75% 1,850 1,899 5728 62 8 83.67%58 60 2 66.17% 1,900 1,949 5829627 83.08%59 60 1 65.58% 1,950 1,999 5930626 82.50%60 60o65.00% 2,000 60>