10.12.100 Cyprus Glossary

Introduction

This section contains a list of terms used in and applicable to the Agreement with Cyprus.

Australian Carer Payment/Carer Payment

Under the Agreement with Cyprus, CP can be paid only to the legally married partners of age or of severely disabled disability support pensioners. In all cases the partners must have been Australian residents at some time. When it is granted in Australia to the partner of an Agreement pensioner, it becomes payable under the Agreement.

Australian Disability Support Pension/Disability Support Pension

The Agreement with Cyprus covers DSP for the severely disabled only. People who are not severely disabled cannot be granted an Australian DSP under the Agreement.

Australian Parenting Payment (Single)

Under the Agreement PPS is limited to legal (de jure) widows. Other categories of lone parents (single parents, males etc) are not covered under this Agreement.

Australian Widow B Pension

Under the Agreement, WidB is limited to legal (de jure) widows. Other categories of widow B pensioners (divorcees, dependent females etc) are not covered under this Agreement.

A widow B pension must not be granted unless the woman's claim for the pension was lodged before 20 March 1997 and the woman is qualified for the pension before that day. This does not apply when the Secretary makes a determination to resume a woman's widow B pension under SSAct section 401 after it has been cancelled or suspended under sections 400, 400A or 400B. However, a woman on an autonomous widow B pension is still able to transfer to an agreement widow B pension overseas. In the latter situation, the transfer does not involve a new grant of widow B pension.

Australian Wife Pension

After 30 June 1995, WP cannot be granted, even under an agreement. An autonomous wife pensioner can transfer to an agreement WP (when an agreement covers this concurrent entitlement) as this is not classified as a 'new grant' of WP. WPs granted under the Agreement before 1 July 1995 continue to be paid outside Australia. WP can only be paid under the Agreement to a woman who has been an Australian resident at some time.

Benefit

Benefit, for Australia, means a pension, benefit or allowance payable under Australian social security legislation as specified in Article 2 of the Agreement. It also includes any additional amount or increase that is payable to a person who qualifies for that increase. RA, PhA, TAL and RAA are payable to people inside Australia, but are subject to the portability restrictions of the SSAct for people outside Australia.

Bereavement Allowance

Under the Agreement with Cyprus, bereavement allowance can be paid only to widowed persons (male or female) who stop being partnered because of the death of their partner. It does not include someone who has a new partner.

Cypriot Age Pension

Except for miners, Cypriot age pension is granted to both men and women aged 65 and there is no pre-condition that the claimant be retired from regular employment. Miners are entitled to age pension earlier than the normal qualifying age (if they are retired from mine work), receiving a discount of one month for every 5 months of work below ground. There are 2 contribution conditions for entitlement to an old age pension:

  • the insured person must have paid contributions for at least 3 years, and
  • the average insurable earnings during working life must be greater than a prescribed level.
Cypriot Funeral Grant

Funeral grant is a lump sum amount paid for the death of any person:

  1. who is in receipt of old age, invalidity, widow's benefit, death benefit or missing person's allowance,
  2. who is an orphan in respect of whom orphan's benefit is payable,
  3. whose death is caused by an industrial accident or occupational disease,
  4. who satisfies the contribution conditions at the time of death, and
  5. who is the dependant of a person in (a) or (d).

The contribution conditions for funeral grant (mentioned in (d)) are that the deceased person has paid contributions for at least 26 weeks at any time or during the contribution year prior to death has paid or been credited with contributions for 20 weeks.

Cypriot invalidity pension is paid to an insured person under age pension age who becomes permanently incapable for work. The claimant must have 3 years of contributions and a minimum level of earnings on which contributions have been paid or credited in the year prior to the onset of invalidity.

Cypriot work-related disablement pension is paid to any employed person who, as a result of an employment injury, suffers a loss of physical or mental ability to a degree of not less than 10%.

Cypriot Orphan's Benefit

Orphan's benefit is paid for a minor when both parents (one of whom was an insured person) are dead. It can also be paid if the parents were separated and the one, under whose care the minor was, is dead or one of the parents died and the surviving parent is not entitled, or ceased to be entitled to, widow's pension, provided that the deceased parent satisfied the contribution conditions for widow's pension. It can also be paid when a minor, whose mother was in receipt of a widow's pension, remarries.

Cypriot Period of Insurance

This is a period when contributions were paid or credited under Cypriot law. Under the Agreement, each week of insurance completed before 6 October 1980 under the legislation of Cyprus shall be treated as a week when that person was an Australian resident under the legislation of Australia; and the insurable earnings for any period of insurance completed from 6 October 1980 under the legislation of Cyprus shall be divided by the weekly amount of the basic insurable earnings applicable in the relevant contribution year. The figure so calculated, subject to the maximum number of weeks during which the person was subject to that legislation in that year, shall be treated as representing the number of weeks in the insurance period. Each week shall be treated as equivalent to one week when that person was an Australian resident.

Cypriot Social Insurance

This is a period when contributions were paid or credited under Cypriot law. Under the Agreement, each week of insurance completed before 6 October 1980 under the legislation of Cyprus shall be treated as a week when that person was an Australian resident under the legislation of Australia; and the insurable earnings for any period of insurance completed from 6 October 1980 under the legislation of Cyprus shall be divided by the weekly amount of the basic insurable earnings applicable in the relevant contribution year. The figure so calculated, subject to the maximum number of weeks during which the person was subject to that legislation in that year, shall be treated as representing the number of weeks in the insurance period. Each week shall be treated as equivalent to one week when that person was an Australian resident.

Cypriot Welfare Benefits

Cyprus provides welfare benefits for those who are not insured. The payments are made under the Public Assistance Law 1991 and under the fund established under the Rent Control Laws of 1893 and 1991. The payments are flat rate and means tested. They are not paid outside Cyprus.

Cypriot Widow's Pension

Cypriot widow's pension is paid to a widow (and, under certain conditions, to a widower) of a person, who on his/her death was either a pensioner or had 3 years of credited contributions. If death is due to accident, widow's pension can be paid if the deceased had been insured for at least 26 weeks and had paid contributions on insurable earnings not lower than 26 times the weekly amount of basic insurable earnings and had paid or been credited with contributions not lower than 20 times the weekly amount of basic insurable earnings in the previous contribution year.

Cyprus

Cyprus is the Republic of Cyprus and refers to the entire island of Cyprus including the Turkish occupied sector.

Cyprus Age Pension

The pension rate consists of basic and supplementary components. The basic component is 60% of insurable earnings in the lower band over the period from 5 October 1964 (or from the 16th birthday) to the last contribution year before retirement. There is also a one-third increase for the first dependant and a one-sixth increase for each of the second and third dependants. The weekly supplementary component is 1/52 of 1.5% of the person's total insurable earnings in the upper band. Insurable earnings are earnings on which contributions and benefits are calculated. They include a lower limit known as basic insurable earnings. The total annual insurable earnings of every insured person are divided into lower and upper bands. The lower band includes insurable earnings up to the basic insurable earnings and the upper band includes insurable earnings above basic insurable earnings.

Cyprus Disablement Pension

The pension rate consists of basic and supplementary components. The basic component for 100% disability is 60% of basic insurable earnings increased by one-third for the first dependant and by one-sixth for each of the second and third dependants. The weekly supplementary component is 60% of the average weekly insurable earnings above the basic insurable earnings, in the period from the first day of the second year before disablement to the day on which disablement occurred.

Cyprus Funeral Grant

Funeral grant is a one-off payment. The rate is set in line with the CPI.

Cyprus Invalidity Pension

The pension rate consists of basic and supplementary components. The basic component is 60% of insurable earnings in the lower band over the period from 5 October 1964 (or from the 16th birthday) to the last contribution year before invalidity. There is also a one third increase for the first dependant and a one-sixth increase for each of the second and third dependants. The weekly supplementary component is 1/52 of 1.5% of the person's total insurable earnings in the upper band. Insurable earnings are earnings on which contributions and benefits are calculated. They include a lower limit known as basic insurable earnings. The total annual insurable earnings of every insured person are divided into lower and upper bands. The lower band includes insurable earnings up to the basic insurable earnings and the upper band includes insurable earnings above basic insurable earnings.

Cyprus Orphan's Benefit

Orphans' benefit, for a minor without a surviving, supporting parent, is 40% of the basic insurable earnings with a supplementary component of 50% of the widow's pension which would have been payable for the death of the parent. In no case (for example when there is more than one orphan) can the total of the components exceed the full rate of widow's pension which would have otherwise been paid.

Cyprus Widow's Pension

The pension rate consists of basic and supplementary components. The basic component is 60% of insurable earnings in the lower band over the period from 5 October 1964 (or from the 16th birthday) to the last contribution year before death. There is also a one-third increase for the first dependant and a one-sixth increase for each of the second and third dependants. The weekly supplementary component is 60% of the supplementary component for invalidity pension the deceased would have been entitled to on death, or 60% of the supplementary component actually paid on age pension at the time of death. In the event of remarriage, the recipient is entitled to a lump sum payment of one year's entitlement and pension is then cancelled. Insurable earnings are earnings on which contributions and benefits are calculated. They include a lower limit known as basic insurable earnings. The total annual insurable earnings of every insured person are divided into lower and upper bands. The lower band includes insurable earnings up to the basic insurable earnings and the upper band includes insurable earnings above basic insurable earnings.

Widow

The term is restricted to legally married women whose husbands have died and does not include a widow who has since formed a de facto relationship and continues to live in that relationship. The term does not include divorced women whose ex-husbands have died or widowers. The term 'widow' does not include men. Payments of PPS and WidB can be made under the Agreement only to 'widows' as defined.

Last reviewed: 16 May 2016