NIS Benefits Disbursed to 137,000 Jamaicans Last Year

The National Insurance Scheme (NIS), last year, disbursed benefits to over 137,000 Jamaicans both locally and overseas.

Minister of Labour and Social Security, Hon. Pearnel Charles Jr., made the disclosure during his contribution to the 2024/25 Sectoral Debate in the House of Representatives on Wednesday (May 29).

He said the Ministry is acutely aware that for many seniors, the NIS pension is their only source of retirement income.

“Therefore, it is crucial that they be able to access the funds on a timely and convenient basis. As part of our service improvement, 76 per cent of NIS pensioners now receive payments directly into their bank accounts,” Mr. Charles informed.

He noted that a concern identified by NIS pensioners relates to the Life Certificate verification process.

Mr. Charles said the Ministry is working with e-Gov Jamaica Limited to introduce an electronic method to improve the process and will be piloting this new initiative in the third quarter of the year.

“Additionally, we are taking steps to introduce an automated process to make it easier for domestic workers and other non-PAYE persons to pay their NIS contributions.

Based on the 2019 Actuarial Review and the positive performance of the National Insurance Fund (NIF), NIS benefits were increased by up to 76 per cent effective April 2023,” the Minister said.

The Actuarial Review, as at March 31, 2022, is far advanced, and at the appropriate time, Jamaicans will be informed of any further increases.

Mr. Charles pointed out that the NIF and NIS are inextricably linked.

He said the NIF serves as the repository for all NIS contributions and related income.

“As of March 2024, the unaudited net asset value of the Fund stood at $190.76 billion. This represents a 17.5 per cent year-over-year growth. We are now seeing the positive results from the various reform initiatives which began in 2019. These include increasing contribution rates from five per cent to six per cent, as well as increasing the insurable wage ceiling from $1.5 million to $5 million. These reform initiatives, coupled with steady investment income, have resulted in a healthy stream of income available for long-term investments,” the Minister said.

For this upcoming year, the NIF intends to focus on several high-priority areas.

These include continued reform of the Fund to maximise the rate of return on investments, revising the investment policy to minimise risk exposure and ensure long-term sustainability, and realigning the Fund’s real estate portfolio.

Focus will also be placed on the divestment of low-yielding and non-performing real estate assets to optimise the NIF’s investment strategy; renovating the Kingston and St. Andrew Parish office, located on Ripon Road, at a cost of $209 million; and designing architectural plans for a new

NIS office and a Government Services Centre in May Pen, Clarendon, at an approximate cost of $26.2 million.

The NIF has a projected expenditure of $35 million during this fiscal year to improve investment properties within its portfolio for compliance with

The Disabilities Act and related building codes.