JIS News

Story Highlights

  • National Insurance Scheme (NIS) benefits were paid to over 107,000 persons, up to the end of March 2014.
  • While the benefits provided under the Scheme amounted to approximately $14.7 billion for the period April 1, 2013 to March 31, 2014, contributions for the same period totalled $12 billion.
  • The Minister argued that if the National Insurance Fund (NIF) is to remain viable, “this untenable situation where benefits continue to outweigh contributions must be curtailed.”

National Insurance Scheme (NIS) benefits were paid to over 107,000 persons, up to the end of March 2014.

Making the disclosure during his Sectoral Debate presentation in the House on May 28, Labour and Social Security Minister, Hon. Derrick Kellier, noted that this comprised 7,000 pensioners overseas and 100,000 locally.

He informed that while the benefits provided under the Scheme amounted to approximately $14.7 billion for the period April 1, 2013 to March 31, 2014, contributions for the same period totalled $12 billion.

The NIS is a compulsory contributory scheme that provides financial protection to its contributors and their families against loss of income arising from injury on the job, incapacity, retirement and/or death.

The Minister argued that if the National Insurance Fund (NIF) is to remain viable, “this untenable situation where benefits continue to outweigh contributions must be curtailed.”

The NIF is funded by National Insurance contributions and is the source from which pensions and other benefits under the NIS are paid.

The Government is therefore working to improve management of the Scheme with the assistance of the Inter-American Development Bank (IDB).

Mr. Kellier said the Labour Ministry has received an Actuarial Evaluation Report and a Roadmap for the reform of the Scheme.

“The reports will shortly be submitted to the Cabinet for consideration, with a view to implementing measures to increase the efficiency of the administration of the Scheme and the continued growth and long-term sustainability of the NIF,” he said.