What Benefits Does NAPSA Pay?
NAPSA pays out three principal benefits:
- Retirement Benefits
- Invalidity Benefits
- Survivor’s. Benefits
In addition to these, NAPSA provides a funeral grant to survivors of the deceased member.
Following the recent assent of the National Pension Scheme Amendment Act No. 7 of 2015 on 14th August 2015, pensionable age for members of NAPSA was revised as follows:
- Early retirement age – previously 50 years, now 55 years
- Normal retirement age – previously 55 years, now 60 years
- Late retirement age – 65 years
Any registered member who has reached the ages of 55 years of age and has made a minimum of 180 months of contributions is eligible for Early Retirement Pension. If one decides to retire at the age of 60 and has made a minimum of 180 months of contributions, they will eligible for Normal Retirement Pension, while those that decides to retire at 60 years of age and have made a minimum of 180 months of contributions will eligible for Late Retirement Pension.
A registered member that has contributed less than 180 monthly contributions at the time of retirement will be eligible for a Retirement Lumpsum.
Any registered member with a minimum of 60 months of contributions and has become disabled to an extent that they can no longer work (as determined by a medical board), is eligible for Invalidity Pension provided they have 12 contributions within 36 months of becoming invalid.
A registered member with less than 12 contributions within 36 months of becoming invalid or with less than 60 months of contributions is eligible for Invalidity Lumpsum.
If a member passes away, their spouse(s), biological and legally adopted children are eligible to receive a survivor’s lump sum. If a retirement or invalidity pensioner passes away, their spouse(s), biological and legally adopted children are eligible to receive a survivor’s pension.
The amount payable is divided among the following eligible beneficiaries (2 shares for a spouse and 1 share per child):
- Spouse(s)
- Child under the age of 18 years
- Child under the age of 25 years in formal education
- Unborn child (at the death of member)
- Child of any age physically or mentally incapacitated by the age of 18 and at the death of the member
Where there are no spouse(s) or children the court appointed administrator of the deceased’s estate will be eligible to receive a survivors’ lump sum.
If a registered member passes away, NAPSA provides a funeral grant to help cover the costs of the funeral. The member must have made at least 12 monthly contributions during the last 36 months of their life.
In the event that a retirement or invalidity pensioner passes away, the funeral grant is paid whether the member made at least 12 monthly contributions during the last 36 months of their life or not.