Invalidity benefit is a benefit payable to an insured person who has not yet reached age 60, but is unable to take part in any further employment because of illness that is likely to remain permanent. Invalidity benefit may be either a pension or a grant.
What is invalidity pension?
Invalidity pension is a monthly payment, payable to an insured person who has paid contributions for at least three years before the invalidity began. There are three types of invalidity pensions:
- Transitional pension: requiring 156 or three year of contributions
- Reduced pension: requiring 350-499 contributions
- Full pension: requiring at least 500 contributions
What is invalidity grant?
Invalidity grant is a lump sum (one-time) payment payable to an insured person who does not satisfy any of the above conditions for a pension, but has paid at least 52 weeks or 12 months of contributions.
An invalidity grant is $1200 or 3/4 of the total contributions paid, whichever is greater.
How is invalidity pension calculated?
The amount paid for Invalidity pension depends on the insured person’s annual weekly insurable earnings and the number of contributions paid into the Scheme. The average insurable weekly earnings is the total earnings of the five best contribution years in the last 10 contribution years, before the year in which the invalidity began, divided by 5. 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 thereafter, up to a maximum of 50%.
When should an invalidity benefit claim be made?
The doctor must issue a medical report stating that the illness is such that is likely to prevent the patient from taking part in any further employment.
The medical certificate must then be submitted to the Social Security office where an application will be made for an invalidity benefit.
At this point, a second opinion by one of the Social Security doctors will be required.