Kiribati

Old Age, Disability, and Survivors

Regulatory Framework

First and current law: 1976 (provident fund).

Type of program: Provident fund system.

Coverage

Employed persons.

Voluntary coverage for persons without mandatory coverage.

Exclusions: Expatriates working in Kiribati under an overseas contract, household workers, prisoners, and patients in mental hospitals.

Source of Funds

Insured person: 7.5% of gross wages.

Additional voluntary contributions are possible.

The minimum earnings used to calculate contributions are A$10 a month.

Self-employed person: Voluntary contributions of at least A$5 a month.

Employer: 7.5% of payroll.

The minimum earnings used to calculate contributions are A$10 a month.

Government: None; contributes as an employer.

Qualifying Conditions

Old-age benefit: Age 50; at any age if emigrating permanently or unemployed for at least six months.

Early withdrawal: Age 45 if retired permanently from employment or if evidence of the intention to do so is provided.

Partial withdrawal: Age 45 and employed.

Loan scheme: Fund members must present a viable business plan to the Ministry of Commerce.

Disability benefit: Must be assessed with a physical or mental incapacity for work by two independent doctors or medical practitioners.

Survivor benefit: Paid to a named survivor or to the person(s) indicated by a court if there are no named survivors.

Funeral grant: Paid when a fund member dies.

Old-Age Benefits

Old-age benefit: A lump sum of total employee and employer contributions plus interest is paid.

Early withdrawal: A lump sum of total employee and employer contributions plus interest is paid.

Partial withdrawal: Multiple partial withdrawals of up to 50% of the balance of the fund member's account are permitted. If the fund member makes a partial withdrawal at age 45 while employed, the remaining amount cannot be withdrawn until age 50.

The interest rate is 7% a year.

Interest rate adjustment: The National Provident Fund Board reviews the interest rate annually.

Loan scheme: Up to 50% of 70% of the member's account balance may be pledged against a loan from approved lending institutions. In the event of loan default, the outstanding sum is paid from the account if under court order.

Permanent Disability Benefits

Disability benefit: A lump sum of total employee and employer contributions plus accumulated interest is paid.

The interest rate is 7% a year.

Interest rate adjustment: The National Provident Fund Board reviews the interest rate annually.

Survivor Benefits

Survivor benefit: A lump sum of total employee and employer contributions plus accumulated interest is paid.

The interest rate is 7% a year.

Interest rate adjustment: The National Provident Fund Board reviews the interest rate annually.

Funeral grant: A lump sum of 50% of the balance in the deceased member's fund at the time of death or A$1,500, whichever is lower, is paid to eligible survivors before the final distribution of the survivor benefit.

Administrative Organization

The National Provident Fund Board, which consists of two representatives each from the government and employer and employee organizations, administers the program.

Sickness and Maternity

Regulatory Framework

No statutory benefits are provided for sickness and maternity.

Government employees are entitled to maternity leave at full pay for six weeks before and six weeks after childbirth for up to two children.

Free public health care is provided, including for treatment abroad in certain circumstances, to all citizens of Kiribati.

Work Injury

Regulatory Framework

First and current law: 1949 (workmen's compensation).

Type of program: Employer-liability system, involving compulsory insurance with a private carrier.

Coverage

Employed persons earning A$10,000 or less a year, including seamen employed on Kiribati ships.

Exclusions: Casual employees and self-employed persons.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period. Accidents that occur while commuting to and from work are covered. For occupational diseases, the incapacity or death must have occurred during employment or within 12 months after employment ended.

Temporary Disability Benefits

The benefit is 100% of monthly earnings up to A$40; 75% of monthly earnings greater than A$40 up to A$60; and 66.6% of monthly earnings greater than A$60.

The benefit is paid after a three-day waiting period.

The maximum benefit is A$160 a month.

The total maximum temporary benefit is the permanent disability lump sum the insured would be eligible to receive.

Permanent Disability Benefits

Permanent disability grant: A lump sum of 48 months of earnings is paid.

The minimum grant is A$500.

The maximum grant is A$25,000.

Constant-attendance supplement: 25% of the permanent disability grant is paid if the insured requires the constant attendance of others to perform daily functions.

Partial disability: A percentage of the permanent disability grant is paid according to the assessed degree of disability and a schedule in law.

Workers' Medical Benefits

Medical and surgical care is provided.

Survivor Benefits

Survivor grant: A lump sum of 48 months of earnings is paid.

The minimum grant is A$400.

The maximum grant is A$25,000.

Funeral grant: Burial expenses of up to A$30 are paid.

Administrative Organization

Ministry of Labor, Employment, and Cooperatives administers claims and calculates the benefits due.

Employers insure work injury liability with the Kiribati Insurance Corporation.