@ Miller
Statement prepared by an independent auditor or the Govt Audit General ?
Big difference if you see where I am at…anyway that won’t happen….while for such a fund….. IT SHOULD.

@miller

Yes we need to have dated financials a problem which is endemic to the government (see Auditor General Reports from way back). We however should not forget why governments are borrowing or investing NIS funds and attracting criticism. Our country is built on entitlements which has to be financed, we have built a country on consumption behaviour, we have accommodated rampant inefficiency in government and quasi government agencies. In light of the foregoing we need to address these issues first!

Accounting for pension funds is no run of the mill. Question is to what degree of competency and stewardship is this fund being addressed? Here are some of the problems in managing such funds.

Three things make pension fund accounting complicated. First, the benefit obligation is a series of payments that must be made to retirees far into the future. Actuaries do their best to make estimates about the retiree population, salary increases and other factors in order to discount the future stream of estimated payments into a single present value. This first complication is unavoidable.

Second, the application of accrual accounting means that actual cash flows are not counted each year. Rather, the computation of the annual pension expense is based on rules that attempt to capture changing assumptions about the future.

Third, the rules require companies to smooth the year-to-year fluctuations in investment returns and actuarial assumptions so that pension fund accounts are not dramatically over- (or under-) stated when their investments produce a single year of above- (or below-) average performance. Although well-intentioned, smoothing makes it even harder for us to see the true economic position of a pension fund at any given point in time.
Excess……or turnabouts…we need to be sure ?
Wikipedia

@David
“We have to make a shift in thinking if we are serious”

That’s why the current swimmers need to invest in a pair of swim trunks first before inviting the sunbathers into the beach for the pool party. Pretending that there’s no breeze blowing thorough the dangling balls isn’t going to work.

@ David | August 22, 2012 at 11:15 AM
“.. In light of the foregoing we need to address these issues first!”

So how are we going to go about addressing “these issues”? By constantly engaging in verbal diarrhea both inside and outside of Parliament? The only person who makes any sense in Parliament is an independent member of the Upper House, Senator Chandler. You might want to argue she can afford to speak her mind because she is not a representative of any political party or has no riding or constituency to appease.
So what do we do about these ‘entitlements’? Keep on borrowing and begging? We have already sold our family silver business enterprises and land. Are we going to resort like a paro to stealing to maintain our addiction to entitlements? But from whom? Ourselves?
From what is being played out regarding these entitlements (from which we are certainly NOT getting any concomitant benefits or returns) the country must follow the same path as Greece and have these ‘adjustments’ forced down our stomachs to digest life’s current economic realities.

@miller

Your question has no answer based at the moment but we live in hope.

“The reality we must confront is that we have built a society on consumption.The BLP- the architect of it in the boom years”
NO, No, No Mr David. illadvised consumption patterns have nothing to do with the purported boom years ascribed to the Mr Arthur and his then team. Since the late sixties and early seventies,such was the subject of disparaging remarks from Mr Errol Barrow who often described such patterns as ‘conspicuos’ or ‘having champagne tastes with mauby pockets.

BUSFARE to $5.00

@miller…….What has become of this once verbally prolific and much touted maverick called Dr. J R? Has he now been silenced after being given the opportunity to sit in the chair and eat at the table where the fatted calf is being carved up?…………………………..

miller, he must be busy working on the next DLP manifesto, elections are just around the corner, you know. One of my contacts in the academia world told me that this same “non partisan” doc from up on the hill was a major architect of the 2008 manifesto!

I read with much interest the various views/opinions submitted with respect to Mr Sinckler’s statement on the NIS Funds. Allow me to share with you selective contents which emerged from a Meeting of Experts of Social Security Funds in developing countries to look at – Methods of financing social security schemes in the context of a developing economy, with particular reference to the accumulation of capital and its investment-

Review of national experiences with respect to investment regulations/rules/management/constraints/results achieved
The most effective way of organising the investment of social security reserve funds in developing countries.
The conference was considered to be timely in view of the importance of social security reserve funds as sources of domestic capital in developing countries, either now or in the future and if so, how these funds should be invested in order to meet the technical requirements of the social security schemes and at the same time contribute to national, social and economic development.

Considerations arising out of the conference are as follows and I quote-
“Aspects relating to the investment of social security funds in developing countries included the situation of declining or static rates of capital accumulation which the more mature social security schemes faced; the paradoxical situation which occurred in some developing countries which were short of domestic capital for investment but where, instead of unlimited investment opportunities, the opportunities for investment were restricted due sometimes to limitations on investment of public funds; and the tendency in some countries toignore the maintenance of an appropriate level of reserves in order to meet future social security liablilites and give priority to expedient solutions to a current shortage of capital.’

‘It was noted that those persons who were responsible for managing social security funds had a fiduciary responsiblilty to the scheme members. ‘

There were also other arguments in favour of accumulating funds through social security in a developing country, based on the fact that developing countries generally did not have sufficient capital for ecconomic growth and neither taxes and nor savings contributed enough to capital formation. Pension contributions collected in excess of current requirements would therefore be an additonal source of capital which could be directed itno productive investments or investments of economic and social value.

In order to try to meet the need for funding and at the same time ensure the safety and yield of the investment the ILO recommended that the principal of the accumulated funds was not used to cover current expenditure, but only the income from investment of the funds was used. (This was the system used by the Governments of Barbados from the inception of the scheme up until 1990 to the best of my knowledge.)

It was suggested that an ideal arrangement whenever teh reserve funds reached a substantial amount would be to deposit them with the central bank which would in turn guarantee a positive ‘real’ rate of interest and be responsible for investing the funds in accordance with the Government’s economic and social policies.’

‘Government has had the tendency to consider the reserve funds as one of the sources for financing its national development budget, and with growing needs over the years, it has tended to raise the contributions form the public in order to raise additonal money.’

‘It was nevertheless agreed that soical security pension surpluses should be protected against excessive demands and claims for funding projects of doubtful safety or utility or for transfers to treasuries without guarantee that they will be used for productive purposes (rather than to cover administration expenditure).’

‘The experts were accordingly aware of the importance of the regulatory framework (legislation, rugulations, rules) governing the investment policy of social security institutions in developing countries. While being specific enough to provide effective investment guide-lines, the body of relevant legal provisions should allow for delegation of authority to competent and specialised advisory and management bodies capable fo drawing up suitable investment plans and adjusting them rapidly whenever the situation changed. Effective participation of workers’ and employers’ representatives in investment decisions was considered essential. An effective auditing on investment operation and performance was equally essential and this was primarily a government responsibility.’

The meeting was held in Geneva in November of 1983and was attended by 9 members of the ILO Panel of experts on Actuarial Social security.
I

@ David | August 22, 2012 at 6:06 PM |
“… Just how many times were we as Barbadians told that it would start in 3 months time… Senator Frances Chandler said it best, perhaps if we had used his salary to get the project restarted, there could have been a villa or two built by now.. ”

Yes, David, tell us the delay is due to sorting out of legal documents. Yes Sir, in this day of digital communication and standard legal documentation across jurisdictions we are still having this long delay in getting the legal documents surrounding the financing of the restart of the Four Seasons project finalised. All that can be said, mate, is that “while the grass growing the horse starving”.

@ Hal Austin: Please let us know if this Sovereign Wealth Fund management guru is Avinash Persaud. Because if you really see him as an expert then your reputation will certainly come under the microscope. For there is much more in the 4 seasons mortar than just the persaud pestle.

@ Sittin Bull | August 22, 2012 at 6:43 PM |

That right, Kemo Sabe!

What about inviting Prince Harry down to buy villa to hold private orgies and gamble at hotel casino?

@Onions

You may recall when PRT was in Barbados how management viewed the local talent. India’s success is built on software design and call centres operated by cheap labour.

Now now Miller … be velly careful …no?

balance

My God …! 1983 …!

As long as Meow Lin remain conquistador by trade(only)…Oh great Bam regime will continue to play hidden tiger. The day Meow Lin over steps this balance and gets too big for her boots Bamsie, will read the riot act and wake up the Sioux ordnance…..

Miller

Be velly velly careful …no?

@enuff

Perhaps Hammie used the flawed system as it is to represent his people.

Here is Hal Austin’s link referred to in the conversation above:

http://bajan.wordpress.com/2012/07/19/notes-from-a-native-son-the-nis-who-is-killing-the-goose-that-lays-the-golden-egg/

@ Hal Austin | August 23, 2012 at 3:01 AM |

What makes it even more appalling is that the man is supposed to be an accountant by training. What a tragedy! This is how serious the politicians see these important financial institutions and regulatory bodies. Put square pegs in round holes and sycophantic idiots at the top so that politicians can manipulate and abuse the system to their narrow political objectives.

Why put a man with such a poor track record (He was once Supervisor of Insurance and with known political ties to a party accused of originally responsible for the lax regulatory environment leading to the CLICO ponzi scheme) in charge of such an important regulatory body? The FSC was touted as the surgeon needed to identify and root out policies and practices in the non-banking financial services sector that are anathema to the interest investors and which could lead to other CLICO type financial improprieties.
Why not transfer him to some senior administrative position like special project Straughn or the PS in some ministry or head of some department where tax payers’ money or people’s savings and investments are not at risk of abuse or misappropriation by lying politicians and their pals like sam pooky greenverbs.

“Them politicians laughing at we”!

Another point, the technicians who manage the fund will feedback if they had invested the fund based on best practice a significant % of that investment would have been

destroyed pot-2008.

@Caswell

Can you tell us who are the members of the new COB Executive?

“He is obviously a poor manager and incapable, to my mind, of holding a senior public sector management position.”

He is one of those who fits the bill alluded to in my post who have more than the requisite certification but are square pegs in round holes. Full of fluff but little substance having been catapulted to the top by virtue of an accounting qualification which is knocking dog now; but i think it would be a little harsh to lay all of the blame for the woes presently plaguing the National Insurance Scheme at his doorstep.The situation with the Financials date back to the imposition of the levies in 1982 which were immediately implemented out of Budgetary Proposals without all the relevant systems in place to capture the accounting transactions.What has been more disturbing under his watch is the undue delays sometimes over four years in having Tribunal matters settled.

David

The members of the Executive of COB following the elections are:

Board of Directors
Lynette Holder – President
Lindell Earle – Vice President
Adlai Stevenson – Treasurer
Christopher Oliver – Secretary
Peter Earle – Director
Eldridge Dixon – Director

Supervisory Committee

Bernard Thompson – Chairman
Karene Harris – Vice Chairman
Rhondda Walcott – Secretary
Shawn Babb – Member
CASWELL FRANKLYN – Member

Credit Committee

Glyne Pilgrim – Chairman
Audley Grimes – Vice Chairman
Celeste Foster – Secretary
Cyrilene Wilkie – Member
Maurice Mason – Member

@ Caswell
Now that is established…..when Sioux indian friendly send Sleepy Sparrow for big time loan for corn meal money to make dumplin for my people ..I hope Lynette doan present Big Chief wid no shite…..cuz it wud be dynamite…ah boy.lol