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What is Social Security?

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

What is the NASSIT Scheme?

The NASSIT scheme is a social insurance scheme under which members contribute monthly and receive benefit as and when the contingency occurs. The scheme is therefore contributory. Benefits provided under the NASSIT Pension Scheme are:

(a) Old Age benefit- This refers to the protection of workers who because of their age are no longer receiving income from work. The purpose of the old age benefit is to replace part of the income that is lost. It is paid as a pension or grant depending on the number of months of contributions made by the member as follows:

        i.       Old Age Pension

Old age pension is payable monthly to an insured person who has reached the normal retirement age or the voluntary retirement age and satisfies the qualifying condition, i.e., minimum of 180 monthly contributions should have been paid  or credited.

        ii.       Old Age Grant

Old age grant is payable to an insured person who retires on reaching the normal or voluntary retirement age but is not eligible for an old age pension. To qualify for grant, the insured person should have paid not less than 12 monthly contributions and have paid or have been credited in total less than 180 monthly contributions.

 (b) Invalidity benefit- This is meant for persons who have permanently lost a substantial proportion of their capacity to earn. It is paid as a pension or grant depending on the number of months of contribution made by the member as follows:

     i)     Invalidity Pension

Invalidity pension is payable monthly to an insured person who is under 60 years of age and is found by the NASSIT Medical Board to be totally and permanently incapacitated. The insured person should have paid or been credited with contributions for a minimum of 60 months of which contributions must have been paid for at least twelve months within the period of 36 months preceding the commencement of invalidity; or has been credited with contributions for a minimum of 180 months.

     ii)    Invalidity Grant

Invalidity grant is payable to an invalid member who has paid at least 12 monthly contributions, but who is not entitled to an invalidity pension.

C) Survivors’ benefit – This is intended for dependant survivors on the death of the insured person. It is paid as a pension or grant depending on the number of months of contributions made by the member as follows:

  i)     Survivors Pension

Survivors pension is payable monthly to the dependants of a deceased member who was in receipt of an old age pension or an invalidity pension or if the deceased member would have been entitled to an invalidity or old age pension had he made a claim for such benefit at the date of death.

         ii)  Survivors Grant

Survivors grant is payable to the dependants of a deceased member who would have been entitled to an invalidity grant if he had become an invalid on the date of death.

What determines the size of benefit?

The NASSIT Scheme is earnings related and generally, members with higher salaries receive higher pensions or benefits for the dependants in the event of death of a deceased member. It is also important to note that a pension is a part replacement of income and therefore cannot be more than an income a member earned prior to retirement. Additionally, the NASSIT Scheme has an inherent mechanism for reviewing pensions.

How are Contributions paid?

The contributions should be paid in cash, or cheque at any NASSIT Area Office. The contributions should be accompanied by contribution report indicating members on whose behalf the payment is made, their social security numbers and their earnings on which the contribution is made.

 

Can a member withdraw part of his contribution?

No, a member cannot withdraw part of his contributions because it is not a savings scheme. The contributions have to be made over a period and invested to enable the scheme pay the benefits guaranteed under the scheme.

Do you have to register again if you change job or employer?

No, you are expected to register only once. If you have registered and been given a social security card, as and when you change jobs, please inform your new employer of your membership of the scheme and let him quote your social security number in the transactions with NASSIT.

What will happen to my contributions if I quit working?

If you quit working your Social Security account is frozen. It is re-activated whenever you return to work and pay contributions. You may keep your account active by paying voluntary contributions

What happens if I stop contributing or do not contribute?

You will owe Social Security arrears if you do not fill in a notification of termination when you stop your declared business, trade or profession. If you stop making payments whether you are employed or not your account will be frozen.

Whether working or not, you may keep your account active by maintaining your contributions, thereby building up your retirement fund and increasing benefits to your survivors.

Can you change your date of birth with NASSIT?

No. This is because dates of births do not change. However, if there is evidence of a genuine mistake in capturing a date of birth, a change could be effected.

How often can a member change his beneficiaries?

As often as you want

How can I update my personal records?

You can update your personal records-change of name, change of address, names of beneficiaries by completing a Membership Update Form (SS1c) which is available at any NASSIT Area Office.

The form should be endorsed by an employer and returned to NASSIT Area office for the update to be done.

Does NASSIT provide any other benefit apart from the benefits of Old age, Invalidity and Survivors?

The Scheme is too young to provide additional benefits at the moment. However, with the planned investment programmes, members will enjoy indirect benefits such as housing and employment opportunities.

Does a worker apply for his social security benefits when he is declared redundant?

No. A member can only apply for a social security benefit when a contingency occurs. The scheme does not pay redundancy or unemployment benefit.

If the scheme becomes insolvent, who will be responsible for payment of social security benefits?

If for any reason the scheme becomes insolvent, all social security benefits due will be paid by Government.

Will Government interfere in the operations of the scheme?

No. The scheme is an autonomous body established by an Act of Parliament, Act No. 5 of 2001.The governing body is a tripartite Board of Trustees comprising representatives from government, employers and employees. The composition of the Board of Trustees will certainly not allow any undue interference by government.