Pensions
Are you likely to qualify for a pension?
1 |
Your pension age is 65
and |
YES |
|
2 |
you are over age 63
and |
YES |
|
3 |
you, or your husband, have paid contributions to Jersey
or |
YES |
|
4 |
You are a woman
and |
YES |
|
5 |
your pension age is 60
and |
YES |
|
6 |
you have paid contributions to Jersey |
YES |
|
If you answered yes to all of these statements you are likely to qualify for a pension.
Part One -An introduction to pension
What is a pension?
Pension is a weekly benefit paid to people who have reached a certain age, however, you do not have to be retired to qualify. Pension is intended to meet the basic needs in retirement and the amount you receive is based on the contributions you have paid during your working life.
You should consider making arrangements for other forms of income after retirement. For example, a private pension plan or an occupational pension from your work.
What is pension age?
Pension is normally paid when you reach 65 years of age. However, you can claim a reduced pension at any point between the ages of 63 and 65.
Women who joined the Jersey Social Security Scheme before
1 January 1975 can claim a pension when they reach the age of 60.
Only one pension
Under the Social Security Law no-one can receive more than one pension from us. A woman who married before 1 April 2001 or a widow may have the choice of a pension:
- based on her own contribution record or
- one based on her husband’s contribution record
She can choose whichever is more favourable to her.
Part Two - Contribution conditions
To get a pension based on your own contribution record you must meet 2 conditions.
First - you must have paid full contributions for at least 6 months.
Second - your contribution record must give at least a 10% entitlement to a pension. To get a 100% pension your contribution record must total 45 years before the end of the month prior to your 65th birthday. If your contribution record is less than 100% your pension entitlement will reduce accordingly, for example if your contribution record is 80% full you will be paid 80% of the standard rate of pension.
For this second condition contributions paid or credited are counted. You can get credits for periods of sickness, unemployment and so on.
What happens if I have less than a 10% entitlement to a Jersey pension?
You will not normally get a Jersey pension. But Jersey has Social Security agreements with a number of countries. If you made Social Security payments in any of these countries the contributions may be counted towards the contribution conditions for a pension in Jersey.
Make sure that you fill in the section on the claim form that asks about countries to which you have paid contributions. We will provide information to countries with whom we have a Social Security Agreement so that your pension entitlement can be calculated.
When this leaflet was printed, Jersey had agreements with:
| Austria |
Ireland |
Portugal |
| Barbados |
Isle of Man |
Spain |
| Bermuda |
Italy |
Sweden |
| Canada |
Jamaica |
Switzerland |
| Cyprus |
Netherlands |
United Kingdom |
| France |
New Zealand |
USA |
| Guernsey |
Northern Ireland |
|
| Iceland |
Norway |
|
Part Three - Special arrangements for women
Pension at 60
If you joined the Jersey Social Security Scheme before 1 January 1975 you are entitled to claim a pension at the age of 60. We calculate your pension by using contributions from 1951 up to the last complete calendar year before your 60th birthday.
If you have not paid enough contributions to qualify for a pension at 60, you may continue to pay contributions so that you can qualify for a pension when you reach the age of 65. In this case your pension will be calculated by using the contributions from 1951 up to the last complete month before your 65th birthday.
Once you have reached the age of 60, please ask the Pension staff for advice before paying any contributions.
If you are paid a pension from the age of 60, we will regard you as having reached pension age for all aspects of the Social Security Scheme. This means that you cannot receive any benefit that is paid to people under pension age - e.g. Short Term Incapacity Allowance.
Using your husband’s contribution record
If you were married and registered for Jersey Social Security purposes before 1 April 2001 you can get a pension using your husband’s contribution record providing:
- you are aged 65 or over and
- your husband is aged 65 or more and has qualified for a pension.
If you are 65 or over when your husband qualifies for his pension, you will be able to get a pension of your own based on your husband’s contributions.
If you are under 65 when your husband qualifies for his pension you will not normally get a pension until you reach 65. Until then your husband can get an increase to his pension for you as his dependant.
In some cases a married woman can get a higher rate of pension on her own contributions than she can by using her husband’s.
We will automatically work out the highest rate for you.
Please note: The above conditions only apply to women married prior to 1 April 2001.
Widows
If you are getting a Widow’s Benefit you will be entitled to a Widow’s Old Age Pension or an Old Age Pension based on your own contribution record when you reach 65.
If you are not getting a Widow’s Benefit your pension will be calculated on your own contribution record. We can also substitute the contribution records of previous husbands if the marriage took place prior to 1 April 2001.
Divorce
If you have been divorced, we can substitute your ex-husband’s contributions in place of your own for the period of that marriage if that marriage took place prior to 2001, if it is to your advantage.
Part Four - Flexible pension age
If your pension age is 65 you can choose to take your pension at any time between age 63 and 65.
For each month the pension is paid early your pension will be reduced by 0.58% of your pension entitlement. If you have built up a 100% entitlement and you choose to take your pension at 63 you will be paid approximately 86% of a standard rate pension (24 months x 0.58% = 13.92%).
The reduced rate is payable for life and we strongly recommend that you take this into account in planning for the future.
The following payments will also reduce in the same way:
- increase to pension for a dependant wife
- pension for a wife based on her husband’s contributions and:
- pension for a widow based on her husband’s contributions may also be affected.
Part Five - Claiming your pension
You should receive a letter and a claim form from us about a month before you reach pension age. If you have not received these 2 weeks before your birthday please tell us.
If you are a married woman and want to claim a pension based on your husband’s contribution record you must fill in a separate claim form. If you are near or over 65 when your husband claims his pension you should receive a separate claim form. Please tell us if you do not get one.
Do not delay in filling in the claim form and returning it to us. You may lose benefit by delaying your claim. We cannot back-date pension more than 6 months before the date you claim.
Claiming for an increase for your wife
If your wife is under 65, your date of marriage was prior to 1 April 2001 and you wish to claim an increase of pension for her, make sure you answer all the questions on the claim form.
Disablement Benefit and Pension
Under Jersey Law, Disablement Benefit does not affect your right to a pension. Both benefits can be paid at the same time. But we can only pay one increase for a dependant wife. You can claim an increase on either your Disablement Benefit or your pension.
Part Six - How pension is paid
Your pension will be paid 4 weekly in advance directly into an account with any recognised bank or building society.
It will start on the first Thursday on or after your pension age. If you have claimed a flexible pension it will start on the first Thursday after your completed claim form is received.
Appeals
If you are not satisfied with the decision of the Department, please contact the Pension Zone.
Income Tax
Pension is taxable. If you have any questions please contact the Income Tax Department.
Part Seven - Rates of pension
The standard weekly rate of pension is shown on leaflet entitled Contribution Levels Benefit Rates
Increase for a wife
Your pension can be increased if your wife is under 65 and:
- she is living with you or
- she is not living with you but you fully or mainly support her financially
- your date of marriage was prior to 1 April 2001
This increase cannot be paid if your wife is getting a pension or any other Social Security benefit in her own right.
Review of the pension rate
The rate of pension is reviewed on 1 October every year and increased in line with the Jersey Earnings Index, for the 12 months ending on 30 June of the same year.
You do not have to do anything. The increase will be paid to you automatically.
Part Eight - Changes in your circumstances
You must tell us if you:
- change address
- change your bank or bank account
- go abroad
- are detained in prison or
- go to work
- get married
Changing your address
Please tell us if you change your address. It is important that we have your correct address so that you can continue to receive your pension on time.
Changing your bank or bank account
It is important to tell us if you change your bank or bank account. We must have the correct bank details so that we can continue to pay your pension on time. Please tell us well in advance of the changes so that there is no delay in paying your pension.
Going abroad
A pension can be sent to you anywhere abroad. Your pension might be affected by a Social Security agreement, and in some cases, currency restrictions.
If you are going abroad tell us well in advance so that we can arrange to pay your pension without any delay.
Going into hospital
Your pension will continue to be paid if you go into hospital. If you are finding it difficult to get money you can arrange for us to pay your pension to a person of your choice. This person is called an agent.
Prison
You must tell us if you are sent to prison. We cannot pay you a pension for any part of a prison sentence.
Going to work
Your Jersey pension is paid when you reach a certain age. You do not have to retire to get it. This means you can work and still receive your pension.
If you do work after you reach pension age you do not have to pay contributions. You should exchange your blue registration card for a red one at the end of the month in which you reach pension age.
Your employer holds your registration card. Please ask for your card back and return it to the Contribution Zone in the Department. Tell us that you have reached pension age and we will give you a red card in exchange for your blue one. Give the new card to your employer at once.
The colour of the card tells your employer whether they should deduct contributions from your wages or not.
Part Nine - Other help you may get
Income Support
Income Support is an income-related benefit that provides financial support towards the costs of housing,living, medical needs and childcare. Carers also receive support.
Income Support is available to individuals and families that satisfy conditions relating to residency in Jersey and employment.
The amount of Income Support payable depends on income, savings and assets, and on personal circumstances.
If you wish to apply, please contact our Income Support Zone on 445505 or call into our office.
The Jersey 65 + Health Plan
The Social Security Department is operating a Scheme, funded by the States of Jersey, to subsidise dental, optical and chiropody costs for the over 65’s.
Financial assistance from the administrators will be available as follows:
Optical
- Every two years, up to £15 towards an eye test
- Every two years, up to £90 towards new prescription spectacles, lenses or contact lenses
Dental
- Every year, up to £22 towards a dental check-up
- Every year, up to £250 towards dental treatments or dentures
Chiropody
- Every year, up to £90 towards the cost of Chiropody treatment from a State Registered Chiropodist (a list of State Registered Chiropodists can be found in the yellow pages)
You may be eligible if:
- You are 65 or over at the time of application
and - You do not pay income tax because your income level is below the relevant tax threshold
and - You have been resident in Jersey for 5 years
and - You are single and your capital assets are less than £20,000 or if you are married less than £30,000
To apply for The Jersey 65+ Health Plan please contact our Pension Zone. To phone, please ring 445505.
Voluntary welfare societies and organisations
Many services are provided by voluntary welfare societies and organisations. Details of some of these organisations can be found in the telephone directory under the heading Help Lines and Support.
A comprehensive listing is obtainable from the Citizens Advice Bureau.
Part Ten - Further Information
This leaflet gives general information and does not try to give full details on any particular matter. It cannot be treated as a statement of the Law.
Please quote your Social Security Number when you write to us. If you do not know it please give your full name and date of birth. If you are claiming on your husband’s contribution record please also give his Social Security Number or full name and date of birth. This information will help us deal with your enquiry.
Please contact us if you have any questions or suggestions about the information contained in this leaflet.
Our staff are here to help you, please telephone us on 445505 or call into our office.
Please note: calls to the Department may be monitored for training purposes.
Other leaflets that may be of interest
Large print versions of most of our leaflets are available. Please call us on 445505 and we will be happy to send them to you.
