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Social Security is an organized programme that provides income protection for its members in the event of certain contingencies such as Old Age, Invalidity and Death.
The object of the National Social Security and Insurance Trust is to provide retirement and other benefits to meet the contingency needs of workers and their dependants.
The National Social Security and Insurance Trust is a social insurance scheme in which members contribute periodically and receive benefit when a contingency occurs. The scheme is therefore contributory.
The scheme covers all formal sector employers and employees on a mandatory basis. It provides voluntary membership for the self employed.
The Scheme covers three contingencies:
- Old age
It is financed mainly from contributions by employers and employees.
Yes. As a member, when you contribute during your working life, you will be paid benefits at the onset of any of the three contingencies of Old age, Invalidity and Death.
Credits can be transferred from one place of work to another. The employer will continue to pay social security contributions to the new employee's earnings, citing the employee's unique social security number, which will never change.
Everyone can register and become a member of NASSIT. It is mandatory for all employers to ensure that workers in their establishments/organisations/businesses are registered with NASSIT. Even if an organisation employs only one worker, that worker must be registered and contributions paid on his behalf.
The process include:
- Fill and complete the Employer Registration Form (Form SS 2A) issued by NASSIT.
- Submit completed SS2A forms to any NASSIT office immediately upon completion.
- All completed SS2A Forms must be endorsed by an Inspector or a senior NASSIT official.
- All registered Employers whose forms have been verified and endorsed will be issued with an Employers Registration Number through a letter confirming registration with NASSIT.
Financing of the Social Security Scheme comes primarily from contributions and investment earnings. The amounts of current contributions not needed to pay benefits are accumulated in a Reserve Fund, to cover future liabilities in benefit payments to members.
Members of the Scheme are entitled to a package of benefits, as prescribed by the NASSIT Act of 2001, in the event of Old age, Invalidity, and Death. Essentially, NASSIT provides for a replacement of income lost on account of the above-mentioned contingencies.
The Scheme provides cash benefits to its contributors/members in respect of:
- Old age gratuity and Old age pension.
- Reduced or Early Retirement pension.
- Retirement grant.
- Invalidity pension.
- Invalidity grant.
- Survivors’ pension.
- Survivors’ grant.
- You must be at least 60 years old (which is the National Retirement Age);
- You must have 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.
- Take the average of your best five (5) years.
- Divide the average you got in Step 1 by 12 to get a monthly rate.
- If the qualifying condition of 180 months (15 years) was met, monthly pension payments start at 30 percent of the monthly rate in Step 2.
- For any additional year worked, we add 2 percent to the pension amount derived in Step 3.
A lump sum equal to twelve months of initial pension derived above is payable as gratuity on the 60th birthday of the member.
This is when a determinable physical or mental impairment prevents a member or contributor from engaging in any meaningful gainful employment. The member must have an extreme impairment which makes him permanently unable to do the work he did previously or to engage in any other gainful employment.
- Member must have contributed for a minimum period of 60 months of which twelve (12) months’ contribution must have been paid during the last thirty-six months preceding the commencement of invalidity;
- Member must have been declared permanently and totally incapable of further employment by a qualified and recognized medical officer and certified by the Medical Board.
After the Medical Board has certified a member invalid, the Invalidity pension will be calculated as follows:
- Number of months of contributions or credit earned;
- Difference between the year of invalidity and national retirement age (60 years). The difference is divided by 2 (two).
- Pensions are then calculated based on the number of years derived from (b) above
The entitlement to an Invalidity pension shall cease on the following conditions:
- If the Medical Board determines that the member is no longer invalid;
- If the Invalid member commences work other than work which is determined by the Medical Board as beneficial for rehabilitation purposes;
- When the Invalid member reaches age 60, at which point it is converted into an Old age pension.
A survivor or dependant is:
- a spouse
- a dependent child under 18 years, if not in formal education
- a dependent child under 23 years, if in formal education
- more importantly, a dependant’s name must have been listed as such on the registration (SS 1A) form or Data Update (SS1C) form.
- The deceased must have been in receipt of, or entitled to, an old age or invalidity pension, or
- The deceased must have contributed for a minimum period of sixty (60) months, twelve (12) of which must be within the last thirty-six (36) months preceding death.
A survivor shall receive pension for a period of time:
An invalid dependent child shall receive the pension until death, or according to the Act governing the Scheme, he is no longer invalid.
- A spouse or spouses shall receive 40% of the deceased’s pension (distributed equally) until death or until new co-habitation or re-marriage.
- The child/children shall receive 60% of the deceased’s pension until:
- 18 years, if not in formal education, or
- 23 years, if in formal education
NASSIT has offices in Western Area, Northern, Northwest, Southern and Eastern regions of the country.