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What is the individual early retirement pension? It is a special type of disability pension that can be granted on less stringent medical criteria than the regular disability pension. An eligible candidate will be able to avail it under both the national and earnings-related pension legislation. Who is an eligible candidate? This pension scheme is intended for both employees and self-employed people who were born before 1944 and have a long work history.
Difference between normal retirement pension and early retirement pension.
Normal Retirement Pension: Anyone who retires on the normal retirement date is entitled to receive an annual pension payable in equal monthly installments commencing on the retirement date and continuing on the first day of each month thereafter. The amount is equal to 2% of the person's final average earnings multiplied by the person’s pensionable service.
Early Retirement Pension: Each person who retires prior to the normal retirement date is entitled to receive an annual pension that is payable immediately or he/she may opt to start the receipt of pension at a later date, but no later than the persons normal retirement date. The pension is paid in equal monthly installments commencing on the date the person retires or on the date he chooses and continuing on the first day of each month thereafter. The pension shall be the pension accrued by the person up to his/her early retirement date, based on the person's final average earnings and pensionable service up to the early retirement date. But this is reduced by 0.5% for each complete month by which the persons pension commencement date precedes the normal retirement date.
Qualifying conditions for individual early retirement pension
- The claimant should be between 60 and 64 years of age.
- The claimant’s capacity for work has been permanently reduced so that he/she cannot continue working anymore.
The pension amount
- Individual early retirement pension is paid at the same rate as a disability pension.
- Recipients are also be entitled to a child increase or pensioners' care and housing allowances.
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