Social pension payments start July 15

JAMAICANS 75 years and older will start receiving benefits from Government’s social pension programme announced in April this year.

Karl Samuda, the social and security minister, announced in the House of Representatives that the programme will begin by targeting the elderly population which is considered the most vulnerable in Jamaica.

“The introduction of a social pension will enable us to reduce income inequality and promote a better quality life for all Jamaica’s older population,” Samuda stated then.

He said the social pension benefit was set at 50 per cent of the National Insurance Scheme’s (NIS) lowest monthly rate, or $3,400 per month, which is 30 per cent more than the rate paid to the elderly under the Programme for Advancement Through Health and Education (PATH), at $2,600 per month.

Future increases to the benefit, he said, will be indexed to “half the minimum old-age pension under the NIS”. However, recognising that the NIS benefits are subjected to an actuarial review conducted every three years, consideration will be given to ensuring that the social pension benefit is not lower than the elderly benefit under PATH.

Some $800 million has been allocated to the programme this year.

The social pension (or non-contributory pension) is a stream of payments from the State to an individual, which starts when someone retires and continues in payment until death. It is also a part of the pension system of most developed countries. It is different from other types of pension, since its eligibility criteria do not require former contributions of an individual, but citizenship or residency and age or other criteria set by Government, which is where Samuda insists local and national representatives of the people will play a key role.