- Friday, 17 April 2015
4.0 What is the NPS?
Answer: The NPS is a scheme available to you. Started in September 1988, the NPS scheme is designed to provide cash benefits to elderly persons who retired from work; to persons who are incapable of work as a result of illness or disablement and to survivors of deceased persons who were covered by the NPS as income replacement.
4.1 How much cash benefit will I get when I retired?
Answer: Under NPS, you are entitled to receive a minimum of 25% or a maximum of 40% of your average monthly earning.
4.2 Am I required to pay contributions in order to be covered by the NPS?
Answer: Under the NPS, you must pay 3% of your monthly gross earnings to NASSCORP as a contribution. Your 3% contribution will be deducted from your monthly gross earnings. Your employer will pay an additional 3% of your monthly gross earnings to NASSCORP which is NOT to be deducted from your earnings. Therefore, a total of 6% of your monthly gross earnings will be contributed to NASSCORP for your NPS coverage. Note: If you want to keep track of your contributions, you can do so by reviewing your pay checks or you can ask your employer for a Statement of Account which is provided to them by NASSCORP.
Your Monthly Earnings Your Contribution (3%) Employer Contribution (3%) Total Contribution (6%) $ 200.00 $ 6.00 $ 6.00 $ 12.00 $ 180.00 $ 5.40 $ 5.40 $ 10.80
4.3 What are the benefits available to me under the NPS?
Answer: You benefits under the NPS are:
- Retirement Pension (RP)
- Invalidity Pension (IP)
- Survivor's Pension (SP)
4.4 How do the NPS benefits work?
-4.4.1 Retirement Pension (RP)
Retirement Pension is a cash benefit available to you when you reach retirement age - 60 years old. Three months before reaching your 60th birthday, NASSCORP will inform you that you are about to reach your pensionable age. If you wish, you can also inform NASSCORp within the same time frame and indicate whether you wish to be retired. If your decision is to be retired, your employer will retire you and submit your name to NASSCORP for processing of your retirement pension.
--22.214.171.124 How do I qualify for Retirement Pension?
Answer: To qualify for Retirement Pension, you must satisfy three condition:
- Age Condition: You must have reached age 60 and retired from work; or you must reach age 65 for compulsory retirement.
- Contribution Payment Condition: You must have paid a minimum of 100 monthly contributions.
- Retirement Condition: You must have retired from work.
- Employer submits Form C-1 (Earning Records of Claimant)
In order to begin receiving you pension you MUST submit the following documents:
- Transmittal letter from your employer (to request and confirm your retirement)
- Two passport sized photos
- Form C-1 from the nearest regional office of NASSCORP
--126.96.36.199 Suppose I meet the age and retirement conditions but I have not made enough contributions?
Answer: If you have paid at least 12 monthly contributions, you will receive a lump sum from NASSCORP in the form of what is called a Retirement Grant. This means, all of you 3% contributions paid to NASSCORP will be refunded to you with interest.
--188.8.131.52 What happens to my retirement pension if I die while receiving it?
Answer: Your retirement pension will not end if you die. your survivors (widow/widower and child/children) will receive you pension as a Survivor's Pension.
--184.108.40.206 What percentage of my earnings will I receive as retirement pension?
Answer: The percentage of your earnings you will receive as a retirement pension depends on the number of monthly contributions you have paid to the Social Security Fund. For every 100 monthly contributions that have been made to the fund in you name you will receive 25% of the average of your best five years' salary. For every 10 monthly contributions that you pay in addition to the 100 monthly contributions already paid, you will receive a 1% increase. Note: The increase will not exceed 40%. See the example below:
Contributions Paid Rate of Pension (%) 100 25% 110 26% 120 27% 130 28% 140 29% 150 30%
-4.4.2 Invalidity Pension (IP)
"Invalidity" in this case refers to one's permanent inability to work due to a non job-related accident, injury, or the contraction of a disease. In these situations where you are rendered permanently incapable of working despite the fact that you have not reached retirement, you will qualify for invalidity Pension.
--220.127.116.11 How do I qualify for Invalidity Pension?
Answer: To qualify for Invalidity Pension you must satisfy two conditions:
- Medical Condition: You must be examined by the NASSCORP Medical Board to determine whether you are permanently disabled and totally incapable of work.
- Contribution Payment Condition: You must have paid a minimum of 50 monthly contributions during the last 60 months prior to the date you stopped work, or you must have paid contributions for at least 2/3 of all possible months from the date you joined the scheme.
--18.104.22.168 How do I apply for invalidity Pension?
Answer: To apply for invalidity pension, you or your former employer must do the following:
- Write to NASSCORP through the nearest regional office stating that you have been declared invalid or permanently unable to work by a recognized medical doctor and that you are now applying for invalidity pension under the NPS.
- Submit the letter along with a copy of the medical report declaring you invalid.
- Submit a color passport sized photo
- Submit a Form C-1
Note: The minimum rate of Invalidity Pension is always 25% of your average monthly earnings for life.
--22.214.171.124 What happens to my Invalidity Pension if I did not pay 50 monthly contributions?
Answer: If you did not pay at least 50 monthly contributions, but you paid at least 12 or more monthly contributions, you will receive a lumpsum payment called an Invalidity Grant. Specifically, this means that you will receive a lumpsum fr your 3% contribution paid on your behalf into the NPS and you will receive this lumpsum with interest.
-4.4.3 Survivor's Pension (SP)
Survivor's Pension is a cash benefit paid to the dependents, (widow/widower and child/children) of an insured person who has died as a result of a non job-related accident or natural causes.
--126.96.36.199 What percentage of my earnings will my survivors receive as Survivor's Pension (SP)?
Answer: If you die and your survivors are qualify for survivors are qualified for Survivor's Pension, your widow or widower will receive 50% of your pension before your death, and each child (up to five (5)) will receive 10% each.
--188.8.131.52 How Long will my widow/widower or children receive the Survivor's Pension (SP)?
Answer: Your widow or widower will receive the pension for life or until re-marriage, and you children will receive the benefits until they become 21 years old.
--184.108.40.206 How can my survivors qualify for Survivor's Pension (SP)?
Answer: In order for your survivors to qualify for Survivor's Pension you must have first paid a minimum of 50 monthly contributions to the NPS before your death. Following your death, your dependents will then be qualified for Survivor's Pension.
--220.127.116.11 How can my survivors claim the Survivor's Pension (SP)?
Answer: To claim a Survivor's Pension, your survivor and your employer must submit the following to the nearest NASSCORP Regional Office:
- Formal transmittal letter from the employer
- Group color photo of widow/widower and child/children
- Certificate of Death
- Certificate of Marriage (Traditional or Civil)
Not: The widow/widower will receive the benefit for life until she/he remarries. Any surviving child will receive the benefit until he/she is 21 years old. Notwithstanding, invalid children receive the benefit for life.
--18.104.22.168 What happens to my Survivors if I did not pay 50 monthly contributions before my death?
Answer: If you paid less than 50 monthly contributions but you paid at least 12 or more contributions, your survivors will receive what is called a "Survivor's Grant." Specifically, this means that your survivors, will receive a lumpsum or your 3% contribution paid into the NPS and they will receive this lumpsum with interest. The Director General of NASSCORP will determine the interest rate.