The National Insurance Board [NIB] is forecasted to lose approximately $95 million this year. Minister of State with responsibility for National Insurance, the Hon. Myles Laroda spoke with reporters on the matter outside of Cabinet this week as the government weighs a rise in the contribution rate at NIB.
Laroda expressed that the current state of affairs at NIB are not sustainable. He said, “the facts are this, the National Insurance Board will pay out $27 million each month in pensions, we’re collecting $23 million, that leaves a shortfall of $4 million a month, times twelve that’s $48 million. We’ve not even considered the industrial benefits and other benefits that are being paid out. “
The minister went on to note some of the problems plaguing the nation’s social safety net. “Some of the issues as it relates to National Insurance are not things that we can blame anybody for. Can we blame our citizens for living longer? No. And so if they’re collecting their pension benefits that could be as much as twenty years when it was about ten years to twelve years in the beginning, this is where we are. We have a situation where, next year will make fifty years since National Insurance as been there, we’ve had one increase, that was in 2010.”