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Q&A: Residence-related benefit restrictions

By 28. janúar 2019No Comments

Here is basic information about the residence-related benefit restrictions issue along with questions and answers to various issues and requests that the Organisation of Disabled in Iceland has received. We would like to point out that this issue has been referred to the Social Insurance Administration (Tryggingastofnun ríkisins, TR), but we want to help everyone with obtaining information and to claim their right. We will also keep adding answers as soon as we receive questions or new issues arise in regard to this case.

Regarding the case

The opinion of the Althing Ombudman concerns the calculation rule of TR for the residence ratio of those who lived in an EEA country before their disability status was assessed. Another calculation rule applies to persons with disabilities who lived in a non-EEA country before the first assessment of disability took place. The outcome of that calculation rule is much higher when the same premises are considered.

The grounds of the case is that full payments are based on 40 years’ residence in Iceland when individuals are between the ages of 16-67 years. The rule according to the Social Security Act is that when individuals have not reached the age of 67 years, all years shall be added as if the residence had been in Iceland. This rule has not been enforced in Iceland, except in instances where individuals have been residing in a state that is not part of the EEA.

The case is described here on the website of the Organisation of Disabled in Iceland.

Spurt og svarað á íslensku.

Frequently asked questions

I lived in Denmark before I was assessed for disability in Iceland. Does this apply to me?
The opinion applies to people receiving disability allowance whose payments are proportional because of previous residence in EEA countries. It does not apply to those who have resided in non-EEA countries before disability assessment took place.
Is this only for people who live in Iceland?
Part of the group that the opinion applies to lives abroad, but these individuals were given a disability assessment by TR when they lived in Iceland.
What about those who are receiving old age pension or rehabilitation allowance?
The opinion does not apply to the calculation of rehabilitation allowance or old age pension.
I was receiving disability allowance and residence-related benefit restrictions applied to me but now I am receiving old age pension. Does this apply to me?
Yes. The period when you were receiving disability allowance and residence-related benefit restrictions applied to you is something that should be corrected.
Residence-related benefit restrictions applied to a relative of mine who is now deceased. What shall be done in this instance?
The estate of your deceased relative has a claim for correction due to the residence-related benefit restrictions.
Where shall I go to get this correction?
People must go to the Social Insurance Administration, which is responsible for the case and for refunds.
Does this only apply to Icelanders who have lived abroad?
The correction is irrespective of citizenship, the accumulation of entitlement is through residence (legal domicile) in Iceland.
What if I live abroad?
Payments in accordance with the Social Security Act no. 100/2007 are made from Iceland to people who live in EEA countries. These payments are: disability allowance (basic pension), age-related disability increase, income supplement and child benefits. Payments in accordance with the Social Assistance Act no. 99/2007 are not made to other countries than Iceland.
When can I expect that the correction will be made?
TR says that the calculations should be completed sometime around the end of this month or the beginning of the next (January/February). Nothing else is certain.