Disability pension
Encyclopedia
A disability pension is a form of pension
given to those people who are permanently or temporarily unable to work
due to a disability
. It is distinct from welfare
.
. Another example is Supplemental Security Income
(SSI) in the United States.
Normally, there is a minimum years of service to be eligible for the disability retirement benefit. The disability applicant might sign medical waivers for their medical records and normally is scheduled for an independent medical review (IME) to assure they are totally and permanently disabled.
The pension is calculated based on years worked, so the disability retiree can retire earlier (since they are unable to work), but receives an equitable pension based on years of service.
Beneficiaries of the Disability Support Pension receive significantly more than those on unemployment benefit
s; as of 1 January 2009 the basic rate is A$
562.10 per fortnight
for singles and A$469.50 for each member of a couple.
The Disability Support Pension, previously known as the Invalid Pension, were first introduced in the state of New South Wales
in 1908. The Commonwealth government
introduced a nationwide Invalid Pension on December 5, 1910
.
Australians who are temporarily unable to work due to illness, injury or a short-term disability may be eligible for Sickness Allowance. Sickness Allowance pays less than the DSP; as of 1 January 2009, single recipients were entitled to a basic rate of A$449.30 per fortnight and couples A$405.30 for each person.
Like all Australian social security
payments, eligibility for the DSP and the Sickness Allowance is not dependent on individual contributions; rather, benefits are paid out of general Commonwealth government revenue.
income support exists for people with physical or mental health issues. The two main disability benefits are the Sickness Benefit, and the Invalid's Benefit. A doctor's referral and medical certificate (or equivalent) is needed to claim the benefits. The Invalid's Benefit is for someone who has a severe disability, and/or long term sickness, which is paid slightly more than the Sickness Benefit. In addition, there is the Disability Allowance, to supplement medical costs. If the Disability Allowance does not pay for all medical costs, then Temporary Additional Support is provided, but obtaining it is more difficult. All of these benefits have maximum limits, depending on such things as income (both the individual and their partner) and cash assets. Note that the Sickness Benefit and Invalid's Benefit are for people aged less than 65 but the Disability Allowance is for anyone over 18 years.
equivalents are:
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
given to those people who are permanently or temporarily unable to work
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
due to a disability
Disability
A disability may be physical, cognitive, mental, sensory, emotional, developmental or some combination of these.Many people would rather be referred to as a person with a disability instead of handicapped...
. It is distinct from welfare
Welfare
Welfare refers to a broad discourse which may hold certain implications regarding the provision of a minimal level of wellbeing and social support for all citizens without the stigma of charity. This is termed "social solidarity"...
.
North America
An example of a disability pension is from a private or Public Pension Plan, or the Canada Pension PlanCanada Pension Plan
The Canada Pension Plan is a contributory, earnings-related social insurance program. It forms one of the two major components of Canada's public retirement income system, the other component being Old Age Security...
. Another example is Supplemental Security Income
Supplemental Security Income
Supplemental Security Income is a United States government program that provides stipends to low-income people who are either aged , blind, or disabled. Although administered by the Social Security Administration, SSI is funded from the U.S. Treasury general funds, not the Social Security trust fund...
(SSI) in the United States.
Normally, there is a minimum years of service to be eligible for the disability retirement benefit. The disability applicant might sign medical waivers for their medical records and normally is scheduled for an independent medical review (IME) to assure they are totally and permanently disabled.
The pension is calculated based on years worked, so the disability retiree can retire earlier (since they are unable to work), but receives an equitable pension based on years of service.
Australia
Australian residents of working age who are unable to work for 15 hours a week for the next two years are eligible for the Disability Support Pension. Those intending to claim the DSP need to provide a report from their treating doctor.Beneficiaries of the Disability Support Pension receive significantly more than those on unemployment benefit
Unemployment benefit
Unemployment benefits are payments made by the state or other authorized bodies to unemployed people. Benefits may be based on a compulsory para-governmental insurance system...
s; as of 1 January 2009 the basic rate is A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
562.10 per fortnight
Fortnight
The fortnight is a unit of time equal to fourteen days, or two weeks. The word derives from the Old English fēowertyne niht, meaning "fourteen nights"....
for singles and A$469.50 for each member of a couple.
The Disability Support Pension, previously known as the Invalid Pension, were first introduced in the state of New South Wales
New South Wales
New South Wales is a state of :Australia, located in the east of the country. It is bordered by Queensland, Victoria and South Australia to the north, south and west respectively. To the east, the state is bordered by the Tasman Sea, which forms part of the Pacific Ocean. New South Wales...
in 1908. The Commonwealth government
Government of Australia
The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six self-governing British colonies, which became the six states...
introduced a nationwide Invalid Pension on December 5, 1910
December 1910
January – February – March – April – May – June – July -August – September – October – November – DecemberThe following events occurred in December 1910:-December 1, 1910 :...
.
Australians who are temporarily unable to work due to illness, injury or a short-term disability may be eligible for Sickness Allowance. Sickness Allowance pays less than the DSP; as of 1 January 2009, single recipients were entitled to a basic rate of A$449.30 per fortnight and couples A$405.30 for each person.
Like all Australian social security
Social Security (Australia)
Social Security, in Australia, refers to a system of social welfare payments provided by Commonwealth Government of Australia. These payments are administered by a Government body named Centrelink...
payments, eligibility for the DSP and the Sickness Allowance is not dependent on individual contributions; rather, benefits are paid out of general Commonwealth government revenue.
New Zealand
In New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
income support exists for people with physical or mental health issues. The two main disability benefits are the Sickness Benefit, and the Invalid's Benefit. A doctor's referral and medical certificate (or equivalent) is needed to claim the benefits. The Invalid's Benefit is for someone who has a severe disability, and/or long term sickness, which is paid slightly more than the Sickness Benefit. In addition, there is the Disability Allowance, to supplement medical costs. If the Disability Allowance does not pay for all medical costs, then Temporary Additional Support is provided, but obtaining it is more difficult. All of these benefits have maximum limits, depending on such things as income (both the individual and their partner) and cash assets. Note that the Sickness Benefit and Invalid's Benefit are for people aged less than 65 but the Disability Allowance is for anyone over 18 years.
United Kingdom
The United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
equivalents are:
- Disability Living AllowanceDisability Living AllowanceDisability living allowance is a non-means-tested, non-contributory benefit which can be claimed by a UK resident aged under 65 years who has care and/or mobility needs as a result of a mental or physical disability...
(DLA) which is a benefit for people under 65 years of age who have walking difficulties or need personal care due to physical, mental or sensory disability. - Attendance Allowance (AA) which is a benefit for people aged 65 or over who need help with personal care due to physical or mental disability.
- Employment and Support AllowanceEmployment and Support AllowanceEmployment and Support Allowance is a UK Government State Benefit which replaced new claims for Incapacity Benefit and Income Support on the basis of incapacity for work for most claimants from 27 October 2008. Initially, claimants already receiving Incapacity Benefit continued to receive it as...
(ESA) which is a benefit paid to someone of working age who is unable to work because of disability or illness.