AGE BENEFIT

What is age benefit?

Age benefit is a benefit payable to an insured person who has reached the age of 60 years and has satisfied the required contribution conditions. Age benefit is either a pension or a grant.

What is age pension?

Age pension is a monthly cash benefit payable to an insured person until death.
There are three types of age pensions:
(1) Transitional pension requiring 156 contributions starting before 1975
(2) Reduced pension requiring 350-499 contributions
(3) Full pension requiring at least 500 contributions

What is age grant?

Age grant is a lump sum (one-time payment) payable to an insured person who does not satisfy the conditions for a pension, but has paid at least 26 contributions starting before 1975 or at least 52 contributions starting any time after 1974.

How is age pension calculated?

The amount paid for age pension depends on the insured person’s average annual
insurable earnings and the number of weekly contributions paid into the Scheme. The average annual insurable earnings is the total earnings of the 5 best contribution years in the last 10 contribution years, immediately before reaching age 60, divided by five. Where the number of years contributed is less than five, the average will be used over those years.

The rate of pension is 25% of the average annual insurable earnings for the first 500 contributions plus 1% for each 50 contributions thereafter up to a maximum of 50%. However, no pensioner shall receive less than $150.15 per month.

How is age grant calculated?

The amount paid for age grant is 75% of the total contributions (employee and employer) paid up to your 60th birthday or $1200 whichever is greater.

How should a claim for age benefit be made?

The claimant must report to the Social Security Office to be interviewed and to complete and sign the claim form. A Social Security card and a valid birth certificate or passport are required to complete the process.

How and when is age pension paid?

Cheques are paid monthly, and may be mailed to the pensioner’s home address, be collected at the Social Security Office, be paid into your bank account, or be paid to a person whom the pensioner has nominated.

IMPORTANT

Once a person has begun to receive age pension, a life certificate MUST be submitted in order to continue receiving the monthly payments. The life certificate must be signed by a Notary Public or by any person listed on the life certificate. It should be done twice a year — June and December — for pensioners living in Antigua & Barbuda and every quarter — March, June, September and December — for pensioners living overseas.

IMPORTANT

A written authorization is required if a pension cheque must be paid to or collected by someone other than the pensioner. The person to whom the cheque is paid must also present the pensioner’s social security card.