Pension meant for retired workers

primarily to ensure that those who retire from work due to their age receive a monthly pension.
This type of pension used to be referred to as an old age pension, though these days it is often thought more respectful to refer to those in receipt of such pensions as senior citizens rather than old age pensioners.
To be eligible for this pension, a contributor has to have reached the specified retirement age and been contributing for at least 120 months.
If the contribution period is less than this but more than 12 months, the contributor is entitled to a single payment retirement grant on reaching pensionable age.
The age at which one qualifies for an old age pension varies in different countries.
In most cases it is 65 or 60, though some countries have decided recently to raise the pensionable age to higher than 65 since many of their citizens are living longer than people did in the past.
In many countries and in many jobs there is an expectation that at a certain age, generally 65, a person should retire. Often retirement on reaching this age is compulsory.
The rationale for this is to create vacancies for younger people and to allow those who have spent years working to enjoy a more relaxed and restful life once they reach a certain age.
In addition this is so that they do not end up working until the day they die without having had an opportunity to enjoy the fruits of their labour.
To ensure they can do this but still have an income, albeit a reduced income, a retirement or old age pension is paid.
Employees contribute, therefore, to a pension scheme from the time they start working, so that in their old age they will be able to receive a pension.
Often, as with the NSSA administered national pension fund, the employer as well as the employee contribute to the pension scheme.
The standard retirement age at which a NSSA retirement pension is payable is 60 for those who have retired at that age and are no longer working.
Those who remain in employment after that age continue to make pension fund contributions. They become eligible for their pension at age 65 or when they retire and stop working, if that is between the ages of 60 and 65.
At age 65 they are eligible for their pension whether or not they are still working.
If they are still working after that age they no longer contribute to the scheme. They become pensioners not contributors, even if they are still working.
There are circumstances in which a person may be paid a pension before the age of 60.
If a person has worked in a category of employment that NSSA considers to be arduous employment, he may retire at age 55 and qualify for an early retirement pension.
There are specified categories of employment NSSA considers arduous. The person must have worked in such a category of employment for seven of the 10 years prior to attaining the age of 55 to qualify for early retirement.
The pension that is payable in all these cases is a retirement pension. It cannot be received until one has reached retirement age.
The amount depends on the individual’s contribution period and insurable income at the time of retirement. However, the minimum retirement pension is US$40 per month.
If a person who has been contributing to the national pension scheme becomes medically unfit to work before reaching retirement age, he or she can apply for an invalidity pension.
The Talking Social Security Column is published each week by the National Social Security Authority as a public service.
l Readers who have any questions they would like dealt with in this column are welcome to e-mail their questions to [email protected] or send an SMS to 0772 469 801. Those with individual queries should contact their local NSSA office or telephone NSSA on (04) 706517-8 or 706523-5).