14
T
he first payment of a weekly National Insurance
contribution started 41 years ago on 10th April, 1972.
The highest rate then was $7.35, there were nine
increases thereafter, the current highest rate is $270.03
as of 4th March, 2013. The maximum insurable monthly
earnings have moved from $347.00 to $10,000.00. Both the
contribution rates and insurable earnings will be increased
again from 3rd March 2014. It is expected that this trend shall
continue every year until 2020.
Rates of benefits have been increased from 4th March, 2013
except the fixed retirement pension of $3,000 per month. For
example, FUNERAL grant has been increased from $5,000
to $7,500; the minimum survivor’s benefit for a WIDOW or a
WIDOWER from $400 to $600; a CHILD from $400 to $600;
an ORPHAN from $600 to $1,200; dependant PARENTS each
from $200 to $300 and where there is one PARENT, $600.
The MATERNITY grant has been increased from $2,500 per
child to $3,750.
If you are the recipient of SICKNESS and MATERNITY
benefits prior to 4th March, 2013 and continue to receive your
benefit from 4th March, 2013, you shall continue to receive
the same rate of benefit, that is, you will not benefit from the
increased rates. However, the new rates shall come into
effect for SICKNESS benefit from 13th May and 24th June for
MATERNITY benefit.
Those of you who are in receipt of RETIREMENT PENSION,
INVALIDITY PENSION and SURVIVOR’S benefit prior to
4th March, 2013 and continue to receive your benefit shall
be paid the rates in force from 4th March, 2013. All rates
of contributions for these benefits for new applicants from
4th March, 2013 have been revised in order to calculate
the payment of your benefit. At this point, I would like to
encourage you to obtain from any of the National Insurance
Board’s (NIB) Service Centre a copy of your “STATEMENT of
CONTRIBUTIONS”. Where there are missing contributions,
you are required to inform NIB and provide documentary
evidence to prove that you were engaged in insurable
employment for the missing period.
If you are in receipt of a RETIREMENT PENSION before
the age of 65 years and have returned to work, your pension
shall not be suspended and you shall not pay any further
contributions. However, your employer is liable to pay a
weekly rate of contribution in class Z to cover you for payment
of injury benefit for the period of your employment. There is
no age limit for any person to be covered under the Scheme
either as an apprentice or an employee. A new employee as
of 4th March, 2013, must earn not less than $150 per week to
be covered under the Scheme.
Where a recipient of a retirement
Grant dies, his or her survivors are
NOT entitled to receive any benefit
other than a funeral grant provided
that such deceased person had at
least 25 weeks of paid contributions.
A child must be under the age of
19 years at the time of his insured
parent’s death in order to receive survivor’s benefit until
attaining the age of 19 years. Further, such child must
be unmarried and unemployed. If however, such child is
physically disabled, the benefit shall continue for as long as
the disability lasts.
Child includes biological, step and adopted. In the case of
a step-child not living with the deceased insured person at
the time of his or her death, you must satisfy NIB that the
deceased insured person was mainly responsible for the
financial upkeep of the child wherever that child resided.
The following benefits are payable – FUNERAL GRANT,
SICKNESS, MATERNITY, INVALIDITY, RETIREMENT,
SURVIVOR’S and EMPLOYMENT INJURY. To date, self-
employed persons estimated to be in the vicinity of 110,000
are not covered under the Scheme even though an attempt
was made recently to include them. My concern falls under
two main categories, loss of benefits to thousands of self
employed persons and their families and loss of contribution
revenue estimated to be over one billion dollars annually.
An insured person can nominate his or her common-law
spouse to receive Survivor’s benefit. There is a prescribed
form known as NI 42 which can be obtained from any NIB
service centre. You are advised to keep an acknowledged
copy for your record. Failure to do so may make it more
difficult to get your benefit. You must then prove that your
relationship lasted for at least three years immediately before
the death of your spouse. You must submit an Affidavit to
indicate that you are the spouse, obtain one from a relative
and from two prominent persons all supporting that you lived
as man and wife for at least three years. Both the deceased
insured person and the nominee must be single persons. A
single person means a person who has never been married
or whose marriage has been dissolved by a decree absolute
of divorce or declared a nullity or whose lawful spouse has
already died.
If I can be of any help in explaining any issue that I may have
failed to expand on enough, please let me know. I shall be
grateful to you for any suggestions you may want to share
with me for improving this Column. For a free consultation,
please contact me at 625 4636.
NIS CONTRIBUTIONS AND
BENEFITS HAVE BEEN INCREASED
Hubert B. Dolsingh, H.B.M (Gold)
Independent National Insurance Consultant
