The agreement allows CARICOM countries to coordinate their social security programmes and covers the payment of pensions for: a caricom salaried national must be insured in the Member State where he is employed and must therefore contribute to the social security agency concerned. He is entitled to the same benefits as nationals of the host country. The Caricom Convention on Social Security came into force on 1 April 1997. It protects all rights to long-term benefits by providing for the sum of all contributions paid to the social security organisations concerned in the Member States where a national has previously worked. Suriname is the exception because it does not have a comparable social security system. Individuals are subject to the law of the state in which they are currently employed. When persons are employed on board a ship, the law of the state in which the vessel is registered applies. In the case of independent coverage, individuals are subject to the state in which they work. If individuals make mandatory contributions to one state and are voluntarily subject to the contribution in another, they will be guided by the provisions of the country in which they made the mandatory contributions. The reciprocity agreement provides provisions for individuals in cases where the legislation applies to more than one of the participating states. If you or an insured person is disadvantaged by the application of certain provisions of the agreement, the competent authorities may, by mutual agreement, grant exemptions to the application of this convention in the interests of the person or persons concerned.
This applies in particular to diplomats, ship workers, voluntary and self-employed contributors and others residing in countries other than their workplace. The agreement allows voluntary contributions to be paid. Permission to contribute depends on the number of contributions made in participating states. In other words, contributions are added together (this is the concept of totalization). . . . NEEDED CONTRIBUTION PERIOD FOR ENTITLEMENT TO SOCIAL SECURITY BENEFITS The agreement is considered the key to facilitating the free movement of workers in the internal market of CARIOM, but applies to anyone working in two or more countries or having worked in two or more countries that have implemented the agreement. The agreement aims to protect the right of CARICOM nationals to benefit from benefits and to ensure equal treatment in the event of a move from one country to another. The CARICOM Convention on Social Security was signed on March 1, 1996 in Georgetown, Guyana and came into force on April 1, 1997. As of that date, individuals can apply for benefits within the meaning of the agreement.
Under this reciprocity agreement, policyholders are entitled to benefits from one or more social security organisations in the various CARICOM Member States to which they are entitled. Benefits are not reduced, amended, suspended or cancelled if policyholders or their survivors reside in a country other than the country where the benefit is to be paid. . After receiving the relevant information necessary to process the application and having the conviction that the applicant has qualified to receive the benefits, each jurisdiction calculates the nominal amount, the actual amount and the local amount of the benefit for which the applicant is entitled. Nominal Amount – This amount is calculated by first adding the sum of contributions paid in all participating states to determine the corresponding percentage payable. This percentage is then multiplied by the average average annual insurable income of the applicant. The actual amount is calculated by delegating the total contributions paid in the competent state by the sum of contributions paid in all participating states and by multiplying the ration retained by the average annual insurable income.