The National Insurance Scheme (NIS) provides a range of pensions and benefits to contributors of all ages and circumstances. The Scheme is funded by taxpayers through compulsory National Insurance contributions and is the source from which pensions and other benefits are paid. All persons between the ages of 18 and 70 who earn an income are required to be registered with the NIS. The insurable population includes employed persons, self-employed and voluntary contributors. Director of the NIS in the Ministry of Labour and Social Security (MLSS), Portia Magnus, told JIS News in an interview, that individuals who are eligible to receive a pension are contributors in the first instance, as long they have satisfied the eligibility criteria, as well as their next of kin for survivor benefits. She pointed out that there are different types of pensions; however, most Jamaicans are familiar with the retirement pension. The types of benefits that are accessible under the NIS include Invalidity, Employment Injury Disablement, adult survivor pension for widows/widowers and for children, the Special children pension or Orphan pension. According to Ms. Magnus, there is a misconception that when it comes to NIS, it is an old people thing. She explained that other benefits become applicable to any person, depending on what happened to them during their working life or even as children. For example, a child younger than 18 years who has lost both parents, can access a survivor benefit, and a young widow/widower can also access benefits. A special child benefit is also payable to the guardian of a child or children under the age of 18 whose mother was the primary caregiver (a NIS contributor) who is deceased, and the father’s identity is unknown. For a contributor who is diagnosed with an ailment that renders him/her permanently unable to work and is nowhere near retirement age, a benefit is payable. Other benefits, such as Maternity Allowance, are payable to a domestic worker who has satisfied the qualifying condition. “What is important to note is, once an individual is qualified to be awarded a pension (a benefit that is payable for life) from the NIS, they also qualify to access health insurance,” Ms. Magnus said. A Funeral Grant may be payable on the death of a NIS pensioner or his/her spouse; a NIS contributor or his/her spouse, or an employee whose death was a result of injuries sustained in insurable employment. In addition, a one-time grant payment is also awarded when the contribution conditions for a pension are not satisfied. This grant is payable in the categories of retirement, widow/widower, special child, orphan and invalidity. “There is a suite of benefits, not just when it comes to retirement. NIS is a social insurance programme, so it is much more than offering a retirement pension,” Ms. Magnus reiterated. To qualify for benefits under the NIS, individuals will go through a registration process that starts by completing an application form. The form along with supporting documents, such as a valid ID, proof of age, are submitted to the National Insurance Division of the Ministry of Labour and Social Security. “Persons can become eligible for a retirement pension from the NIS once they complete the necessary registration process and begin making contributions to the scheme. This applies to both employed and self-employed individuals,” Ms. Magnus said. Each applicant is then issued a unique NIS number, which is assigned to the individual and is valid for the entire working life, irrespective of which organisation they may work with over their working life or even if they decided to leave employment with the institution and start his or her own business. Ms. Magnus explained that a person’s NIS contributions must be paid consistently to ensure they qualify for a benefit. She pointed out that an average system is used to determine qualification for a pension. At the lowest rate, an average of 10 weeks’ contribution must be made during the insurable period. The insurable period covers persons from they are eligible to begin contributing at 18 up to when the individual becomes eligible to be paid the retirement pension. NIS contributors are eligible to be paid retirement pension at the age of 65; however, if the individual continues to work beyond 65 years, he/she will continue to contribute to the Scheme up to 70 years old or at the point you stop working. A pension and is paid for life. The National Insurance Scheme is a compulsory contributory funded social security scheme covering all employed persons in Jamaica. It is administered under the National Insurance Act and offers some financial protection to the worker and his/her family against loss of income arising from injury on the job, sickness, retirement and/or death of the breadwinner. For further information about the NIS and related benefits persons can visit mlss.gov.jm/national-insurance-scheme or call MLSS at 876-922-8000-13
