About Nassit:

THE SCHEME AND OUR ORGANISATION

Our Service

 

 

 

The National Social Security and Insurance Trust (NASSIT) is a Statutory Public Trust set up by the National Social Security and Insurance Trust Act No. 5 of 2001 to administer Sierra Leone’s National Pension Scheme.

The Trust was established to provide retirement and other benefits to meet the contingency needs of workers and their dependants.

The core functions of the Trust are:

·    Registration of employers and employees;

·    Collection and recording of contributions;

·    The maintenance of records on contributions

     and insured earnings;

·    Compliance and enforcement procedures;

·    The reception and assessment of benefit claims; and

·    The calculation and payment of benefits.

Main Features of the Scheme

·    The Scheme is contributory: It is financed from contributions by employers and employees

·    It is a defined benefit social insurance scheme based on partial funding since contributions

     cannot pay for benefits in perpetuity.

·    Surplus funds not required now for benefit payments are invested.

·    The Scheme is portable; i.e. credits are transferable from one place of work to another.

    Concurrent contributions enhance benefits received at the onset of contingencies.

REGULATORY FRAMEWORK

 

First and current law:

2001 (National Social Security and Insurance Trust), implemented in 2002.

 

Type of programme:

Social insurance system.

 

Coverage

All employees in the public and private sectors.

The self-employed can be covered on a voluntary

basis.

 

Source of funds

Insured person: 5% of earnings.

Employer: 10% of payroll.

The self-employed contribute 15%

Government:     None

Membership

Registration of Members

Membership is mandatory for all workers with an employer-employee relationship. It is mandatory for all employers to ensure that their workers are registered with the scheme. For the self-employed, membership is voluntary.

 Financing

The Scheme is financed from three sources:

    1.  Contributions from Employers and Employees;

    2.  Investment Income; and

    3.  Penalties and Interest on delayed contributions

          Contingencies

        The three contingencies covered by the scheme are: old-age, invalidity and death.

 

Qualifying Conditions

 

Old-age pension: Age 60 (men and women) with at least 15 years of insurance coverage.

 

Disability pension: Total incapacity for any work and younger than age 60 with at least 5 years of contributions of which 12 months' contributions were paid in the 3 years preceding the onset of disability. The disability must be assessed by a medical board.

 

Survivor Pension: The insured person met the qualifying conditions or was receiving an old-age pension or disability pension or had at least 5 years of contributions of which 12 months were paid in the 3 years preceding death

 

Old-Age Benefits

 

Old-age pension: The Pension is calculated on the basis of 30% of the insured's average earnings for the first 15 years of coverage, plus 2% of the insured's average earnings for each additional 12-month period.

 

Periods of employment before the introduction of the new scheme may be credited.

The minimum pension is not less then 50% of the minimum wage.

The maximum pension is 80% of the insured's average earnings.

 

Early pension: A reduced pension is payable from age 55. The pension is reduced by 4% for each year that the pension is taken before  age 60.

 

Deferred pension: The insured person can continue working after age 60. The maximum number of insurable years is 40.

 

Old-age gratuity: A lump sum equal to 12 months' pension is payable to each person who is entitled to an old-age pension on retirement.

 

Retirement grant: If the insured person is of pensionable age but has insufficient contributions to qualify for an early retirement pension, a grant equal to 1.5 times the insured's average monthly earnings for each 12-month period of contributions is paid.

 

Benefit adjustment: Pensions are adjusted annually according to trust fund income.

 

Permanent Disability Benefits

 

Disability pension: The pension is calculated on the basis of 30% of the insured's average earnings for the first 15 years of coverage, plus 2% of the insured's average earnings for each additional 12-month period. A 6-month credit period is awarded for every year that the claim is made before the insured person is age 60.

 

The minimum disability pension is not less than 50% of the minimum wage.

 

Disability grant: If the insured person is not entitled to a pension, a grant equal to 1.5 times the insured's average monthly earnings for each 12-month period of contributions is paid.

 

Benefit adjustment: Pensions are adjusted annually according to trust fund income.

 

Survivor Benefits

 

Survivor pension: 40% of the insured's pension is payable to a widow (er). In the case of more than one widow, the pension is shared equally. The widow's pension ceases on remarriage.

 

Orphan's pension: 60% of the insured's pension for an orphan up to age 18 (age 23 if in full-time education; no limit if disabled).

 

Other eligible survivors (in the absence of the above): A lump sum equal to 12 months' pension is payable to a parent who is employed or is receiving a pension; 24 months' pension to a parent who is not employed or receiving pension.

 

The maximum survivor pension is 100% of the insured's pension.

 

Survivor grant: If the qualifying conditions for a survivor pension are not met, a grant equal to 1.5 times the insured's average monthly earnings for each 12-month period of contributions is paid.

 

Benefit adjustment: Pensions are adjusted annually according to trust fund income.

   

A solid retirement plan counts on Social Security for its foundation.  You can count on NASSIT to be there when you retire!!!

 

Understanding Social Security and The NASSIT Scheme Benefits

Executive Summary of Actuarial Report