The Social Security Act provides that every Self-employed person between the ages of 16 and the Retirement age, ordinarily resident in Dominica, who is engaged in employment in Dominica, must apply for registration as an insured person.

In order to get registered, a Self-employed person is required to present:

• The original copies of his Birth Certificate and marriage certificate (if married)
• Evidence of the income earned in the operation of his business

The contributions payable by Self-employed persons are based on earnings from self-employment during the period of one year immediately preceding the contribution year in which the contribution is due. Hence, the contributions one is liable to pay for, say,2015, is based on the total income earned during the preceding year, i.e. 2014. In view of the foregoing, every self-employed person is required to visit the DSS office no later than the 31st day of January every year, in order to get a reassessment of his income and contribution payable for the new year.

The Rate of Contribution payable by Self-employed persons is currently 13% of their total income for the preceding year, subject to a maximum income of $84,000.00.

While contributions are generally due on a quarterly basis, contributions may be paid on a monthly basis. Late payments, i.e. payments made after the 14th day following the end of the relevant quarter, shall be subject to Late Fees of 10% plus interest.

Each weekly payment received on behalf of an Insured Person is referred to as a Contribution. Each such weekly contribution is converted to Credits. Thus, an Insured Person who worked for an entire month is entitled to 4 or 5 Credits depending on the number of Mondays in that particular month. By extension, the entitlement for an entire year is 52 or 53 Credits, depending on the number of Mondays in the year.

In addition, an employee who is in receipt of any Short-term benefit is awarded a Credit for each complete week (Monday through Saturday) during which he is in receipt of that benefit.

The number of Credits an Insured Person has recorded against his number determines:

• Whether or not he will qualify for benefit.
• What percentage of his salary he will receive as his pension.

(Please refer to the Pension Percentage Computation Chart for the percentage equivalency).

Self-employed persons currently qualify for Long-Term benefits. The benefit payable is a function of the number of Contributions (or Credits) which a person has recorded against his account, and his average income for the best 3 of the last 10 working years. Having determined the Claimant’s Average earnings, the Claimant is paid a percentage of such Average Earnings. The percentage payable depends on the number of Credits that the person has earned during his insurable years. (Please see the Pension Percentage Computation Chart for the percentage equivalency).

It is of interest to not that while the total Social Security contributions paid by a Self-employed person is 13% of his income, the minimum Pension for which he may qualify is 30% of his AWIE.

The Long-term benefits being paid by DSS are as follows:

• Age Pension
• Age Grant
• Invalidity Pension
• Invalidity Grant
• Survivors Pension
• Survivors Grant

In addition, a lump sum Funeral Grant is provided to assist with the burial expenses of an Insured Person, his or her spouse, and/or their dependent children. The Grant is payable to the person(s) who has met, or is liable to meet the burial expenses.

Please note that with effect from 2012, and consequent upon amendments to the Social Security legislation, the Pensionable Age (i.e. the age at which an Insured Person becomes eligible for an Age Pension from the DSS) will increase incrementally by six (6) months every year – until the year 2021, when the Pensionable Age will be set at Age 65.

Notwithstanding such incremental increase in the Pensionable Age, provisions have been made whereby persons, who wish to do so, can opt to receive their Age Pension earlier than the normal Pensionable Age that will be in effect at a particular point in time. In that regard, age 60 shall remain the age at which Age Pensions first become payable, but at a reduced rate of 1/2 % per month for every full month prior to the established Pensionable Age that the pension is so taken.

Against that background, the chart below will assist in determining when Insured Persons will become eligible for their full Age Pension and, thus, the Pensionable Age that will be applicable to them.

Pensionable Age Computation Chart

(N.B. 1/2 year = 6 Months)

How to use the above chart

In order to determine the Pensionable Age for an Insured Person, first select his year of birth, then move across (in the same row) to select the Month Range during which he was born. The next two adjacent cells indicate, respectively, the year during which he will reach the Pensionable Age applicable to him and the said Pensionable Age.

For example, a person born in April 1954 will attain his Pensionable Age of 62 1/2 (i.e. 62 years and 6 months) in October 2016 – at which time he will become eligible to receive his full pension. Similarly, a person who was born in November 1955 will qualify for his full pension in November 2019 when he reaches the Pensionable Age of 64 – which is applicable to him.

A Medical Referee is a medical practitioner (or a group of medical practitioners) appointed to independently evaluate the medical condition of a patient who has been referred to him for evaluation by the Dominica Social Security.

Dependent Children are all the biological children, step children, or legally adopted children of a deceased Insured Person who at the date of the parent’s death was below the age of 18, and was living with, or wholly or mainly maintained by the deceased.

A Certificate of Life form is a certificate attesting to the fact that the Pension recipient is alive and in receipt of his pension. The form must be signed by the pensioner in the presence of a witness who must be either of the following persons: Justice of the Peace; Notary Public; Lawyer; Police Officer (Sergeant or above); Ordained Minister of Religion; Doctor; Family Nurse Practitioner; School Principal; Licensed Surveyor; Banker or Credit Union senior Personnel; Social Security Departmental Manager or Compliance/Field Officer. For benefit recipients residing overseas, the Certificate of Life form must be notarized.

The following Chart gives the approximate pension percentage an Insured Person is likely to receive upon retirement. Please be advised that the “Number of Working Years” cited in the table is based upon the assumption that the person worked for a period of 52 weeks per year.

The DSS Pension Calculation program is under development but is designed to provide an estimate of what your pension is likely to be, based on present legislation, and data currently available.