NASSIT Encourages Regular Payment of Contributions
Not a day goes by without the National Social Security and Insurance Trust (NASSIT) informing its members that as long as they continue to comply with paying their contributions regularly, they are entitled to a package of benefits, as prescribed by the NASSIT Act of 2001.
The Scheme provides the following benefits to its members: Old age gratuity and Old age pension Reduced or Early Retirement pension Retirement grant Invalidity pension Invalidity grant Survivors’ pension Survivors’ grant 1. OLD AGE PENSION AND GRATUITY This is paid to a member who is 60 years old (which is the National Retirement Age), and has made a minimum contribution of 180 months in aggregate A minimum contribution or credit of 180 months gives a pension right of 30%, and every additional year attracts an additional 2% per month. Calculation of Full Old age pension
Subscribers are urged to take the average of the best five (5) years.
If the qualifying condition of 180 months (15 years) was met, monthly pension payments start at 30 percent of the monthly rate. For any additional year worked, NASSIT adds 2 percent to the pension amount derived. Calculation of Old age Gratuity: A lump sum equal to twelve months of initial pension derived above is payable as gratuity on the 60th birthday of the member.
Reduced or early retirement pension: this is paid to a contributor who retires before the National Retirement Age.
However the following conditions must be met before any payment is made: – the member must be 55 years and above but below 60 years; – he/she must have made a minimum contribution or earned credit of 180 months.
The pension right will be reduced by 4% for every year below age 60. Application for Old Age Pension: An application for old age pension shall be made three months prior to the date of retirement of the member on the SS 5A form However, three months before the retirement age of 60, NASSIT will send a form to the member to confirm details on the database. The form must be endorsed and returned quickly so that payment is made on the 60th birthday of the member.