Q&A- A Jamaican nurse living in the U.S. enquires about her retirement benefits in JA

Q. I worked for 20 years in Jamaica as a nurse before migrating to the USA where I have worked for another 20 years.  I have a few months before retiring out of the system (I'm approaching 60) and so I am taking stock, so to speak, of all my benefits due to me upon retirement.  I don't plan to come back to live in Jamaica as I have naturalized citizenship here and my children and grandchildren need me here.  What I want to know is:

(i) Now that I'm approaching retirement age, is there any benefit due to me for having worked as a government nurse in Jamaica for 20 years (1971-1991).  I recall that statutory deductions were taken from my salary, but unfortunately I didn’t keep the payslips.

(ii) If there are benefits to be accessed, is it better to claim my benefit when I attain the exact retirement age or can it wait until I come in a few years time, when I plan to spend a few months there?

A: Dear Nurse, On behalf of the Milestones team, congrats to you for your 40 years of service years in the nursing profession both in Jamaica and the USA.  Also, that you have been blessed to have children and grandchildren who love and appreciate you. 

As a Baby boomer, there are many challenges you will face in terms of coordinating all your sources of retirement income from the USA and Jamaica.  Hence, before your questions are answered, it is appropriate to address the information you will need for processing your claims: (1) Ensure that you have a valid copy of your birth certificate.  We hope you are aware that Jamaica is now providing a new type of birth certificate.  (2) Prepare a list of all the institutions (Employers) you worked for and the dates for each employment.  (3) Obtain a TRN (Taxpayer Registration Number): you will need a TRN to claim any benefits which you are entitled to from National Housing Trust (NHT).   The NHT provides for a refund of contributions. (4) You will need your NIS number.  Now that the foregoing items have been addressed, your questions can be answered. 

(i) Now that I'm approaching retirement age, is there any benefit due to me for having worked as a government nurse in Jamaica for 20 years (1971-1991).  I recall that statutory deductions were taken from my salary, but unfortunately I didn’t keep the payslips.

Although you do not have your payslips, this does not mean that you are not entitled to a benefit.  Since you had 20 years of employment as a nurse, you should have accumulated the following retirement income benefits from the following benefit plans where you were either a contributor or non-contributor due to the nature of the plan: (a) Public sector retirement benefit: since you worked in the government sector, you should write to the last institution where you worked to advise of the years you worked and that you are requesting the appropriate claim form to claim your retirement benefit; and (b) State benefits: National Insurance Scheme (NIS) and National Housing Trust (NHT).  You did mention that deductions were taken from your pay but you will need to check with both NIS and NHT to determine whether or not your records with these institutions reflect that these payments have been made.  It is highly recommended that you do not wait until you visit Jamaica in a few years time to start the process but that you should start it TODAY.  Why?  The processing of these claims are based on the payment records at the institutions and you may need to return to your previous Employers to obtain the information and have it sent to NIS and NHT to ensure that your records are corrected. Keep in mind that this is not unique to Jamaica.  The important thing to keep in mind is that the situation can be corrected where you can obtain the information from the Employer.  Hence, this process takes time and therefore you should start today.

                NIS: The benefit claim forms are accessible online at www.mlss.gov.jm or you can call and ask them to send the forms to you.  However, you will need your NIS number to complete the form: if you decide to download the form, it is in legal size paper: go to NIS forms and click on Old Age Benefit.  If you did not keep your NIS card, you can telephone NIS at the Ripon Road location – (876) 929-7119; 929-7122; 929-7177.  Before you call, please ensure that you have the following information at hand: (a) your full name (the name you used during your employment years in Jamaica), (b) date of birth and (c) name (s) of institutions where you worked between 1971 and 1991.  Since you reside overseas, you can also request to have your benefits payable in the USA.  It would be interesting to get feedback from you as to whether all the institutions you worked for actually remitted to NIS the contributions that were deducted from your pay.  This has been the major problem for persons claiming State benefits: contributions were not paid over and the organizations are no longer in business or where there have been mergers and acquisitions, that the records were not kept for more than 7 to 10 years.  It is for these reasons that it is highly recommended, that persons should periodically check with NIS to determine if their Employer has paid their contributions.  Now this is not to say that many Employers do not remit their contributions on time but for those who don’t, it can be quite a disappointment to callers when they get a response from the NIS personnel that there are no benefits because the Employer did not remit the contributions.  This occurs even when the deductions are clearly stated on the payslip. 

                NHT: This benefit is in the form of a refund.  You can access the benefit online at www.nht.gov.jm.  Even though you can claim the benefit online, you cannot do so unless you have your TRN.  If you do not have it, then you should have someone in Jamaica get the info for you to claim your benefit.

                (ii) If there are benefits to be accessed, is it better to claim my benefit when I attain the exact retirement age or can it wait until I come in a few years time, when I plan to spend a few months there?

                Once you are within six (6) months of the retirement age when benefits are due to be paid, it is best to start the process at that time.  These claims take some time to be processed and paid.  Forms need to be completed and some of the information you need for the forms may not be readily available.  Hence, you should be aware of the retirement age when benefits are payable: (i) NIS: starting April 2011 the retirement age of 60 is being increased gradually and by 2015 the retirement age for women will be 65.  The retirement age of 60 is for women who are not working.  But when a woman attains age 65 she must claim.  Since you are 60 this year and planning to retire, you should obtain the form and submit to NIS.  Upon submission to the NIS, their office will advise when you will be paid.  Currently for men, the retirement age is 65, if not working.  But a claim must be submitted by age 70 whether or not he is working. (ii) NHT: the age for claiming a refund of all accumulated contributions is 65 for both males and females.  (iii) Government sector: the benefits payable from the government sector is based on the retirement age for that plan.  Hence, you need to make contact with your last Employer to determine the age at which you need to claim.

                Hope you will start TODAY by first getting all your personal information required for processing a claim.  Next obtain the claim forms, complete them and submit.  These activities will ensure that you obtain your benefits earned.  We are now living in a global village and claiming your benefits from the countries you lived and worked in is important to receiving an income that can contribute to your retirement financial and lifestyle security.  While income is important, I do hope you have also taken the time to plan some retirement activities, which will also enhance your retirement years.  Do enjoy and please let us know how you progress.

 In conclusion, on behalf of the Milestones Team – Happy Father’s Day to all fathers and thanks for being there in so many ways and enhancing our world with all the gifts that you bring to your homes and to our communities in general.

Disclaimer: The information provided is a guide and does not purport to provide any advice on any particular financial product for retirement financial and lifestyle planning.  Much more information is needed to do so.  Hence, you are advised to obtain advice from a Financial Services Commission licensed (FSC) insurance sales representative and/or an investment advisor.