Disability pension

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.

An example of a disability pension is from a private or Public Pension Plan, or the Canada Pension Plan. 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.

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 benefits; 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.

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