Invalidity Benefits

What is Invalidity Benefit?

Invalidity Benefit is a benefit payable to an insured person who has not reached the pensionable age, and 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 that is 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:

  1. Transitional Pension requiring 156 or three years of contributions
  2. Reduced Pension requiring 350-499 contributions
  3. 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 $1,200 or 75% of the total contributions (employee and employer) paid into the scheme for the insured person, whichever is greater.


How much will I receive for my pension?

The amount you will receive for pension will depend on the number of years you have contributed to the Social Security System and your average annual insurable earnings.

The rate of pension is 25% of your annual earnings, plus 1% for each 50 contributions paid over 500 contributions. However, you will not receive more than 50% of your average annual insurable earnings.

'Average annual insurable earnings' means 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 five. Where the number of years contributed is less than five, the average will be used over those years.


When do I claim Invalidity Benefit?

Once your doctor has declared that your illness is likely to prevent you from taking part in any further employment, ask your doctor for a certification of permanent incapacity for work to be submitted to the Social Security Office where you will apply for Invalidity Benefit. A letter from your employer stating you are medically boarded or that all ties have been severed should accompany the certification of permanent incapacity for work. Following this, Social Security will recommend another doctor for a second opinion.


How and when will I receive my benefit?

You will receive your Invalidity Pension monthly or an Invalidity Grant at one time.

Your cheque may be mailed to your mailing address, be paid to your bank account or be paid to a person whom you have nominated in writing.

If your cheque is to be paid to or collected by someone other than yourself, written authorization is required.

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