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Expectant Pensioners Will Pay for Mismanagement of National Insurance Scheme

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The following (with minor edit) is a comment posted by Walter Blackman to BU blog Whimpering Opposition.

– David, blogmaster

David
April 27, 2019 8:48 AM

“First thing this morning and we are off to the races attacking people instead of debating the real issues?”

David,

Through the vehicle of BU, you are getting a very deep insight into the nature of Barbadians, as a people.

We have paid billions of dollars into the NIS since 1967. The money that was paid into the NIS was supposed to be prudently invested and used primarily to pay benefits to participants and their beneficiaries, along with the administrative costs of running the NIS department.

Reportedly, the NIS for Barbados was first articulated by Charles Duncan O’Neale almost a century ago. From the moment the concept was aired, some anti-progressive minded members of the white minority on the island rationalized that they were wealthy enough to provide for their unborn great-great-great grandchildren and therefore should not be called upon to contribute to any fund which pays out benefits to perceived poor and needy black Barbadians. To this very day, some of these white Barbadians are still demanding that they be allowed to opt out of the NIS.

With this background in mind, any sensible Barbadian ought to have been outraged when they saw black politicians from poor, humble origins take up the hard-earned NIS money of Barbadian taxpayers and stupidly give it away to every Tom, Dick, and Harry on the flimsiest of excuses. All of us are forced to suspect that kickbacks, fraud, and corruption must have been associated with the squandering of our NIS funds.

Somewhere along the line, possibly within the next 30 years, many Barbadians will weep and gnash their teeth as they witness the NIS become totally transformed into a Ponzi scheme, and then collapse, never to be resurrected. By that time, the retiring age for a full pension might be 85 or 90 years old!

This is but one simple issue in the area of finance that is desperately crying out for political ventilation and a solution. There are many, many more financial problems, alternatives, and solutions that ought to be put to the electorate.

Barbados needs outstanding financial leadership now, more than ever.

Given the excessive, prolonged “spiriting away” of public funds, along with the deep financial morass that the country is now mired in, I must boldly ask BU readers a few simple questions:

  1. Who on the government’s side is seen as the person who can get up, address and communicate financial issues to Barbadians in a clear, understandable manner, and then get buy-in from the electorate and major stakeholders?
  2. Who is the named UPP’s spokesman on Finance?
  3. Who is the named Solutions Barbados’ spokesman on Finance?
  4. Who is the named DLP’s spokesman on Finance?

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134 responses to “Expectant Pensioners Will Pay for Mismanagement of National Insurance Scheme”

  1. John Avatar
    John

    All very good points for sure. The biggest worry though to those not yet on pension should however be this. In order to sustain the NIS what will the retirement age have to be pushed forward to? Secondly in order to top up the fund as a result of its being ravished to put it mildly, what will the deduction per worker end up having to be raised to? Will it be 15 percent or 20 percent of insured wages over the long haul? This may well be a case of its being better for us not to know those answers if we want to sleep soundly tonight.

  2. Tron Avatar
    Tron

    Walter,

    You write “By that time, the retiring age for a full pension might be 85 or 90 years old!”

    Thank you very much for this excellent prediction. I was attacked by the structural conservatives and sect supporters of the welfare state (Donna, President Simon et al.) when, a few weeks ago, I proposed raising the retirement age to 75.

    Perhaps the ignoramuses now believe that they will finally have to work longer. Far longer.

  3. Donna Avatar
    Donna

    Sinister One

    Why would you repeat the lie that I am a supporter of the Welfare State when I strongly opined that we need to adjust our expectations, develop a taste for mauby until we can afford champagne, work harder and smarter, and make a paradigm shift away from complete dependence on government?

    I am almost tempted to call YOU an ignoramus but I know you are quite conscious of what you are doing.

    By the way – has the cabinet been reduced to lower than the Stuart cabinet?

    Have the consultancy fees been reduced to lower than the Stuart consultancy fees?

    I seem to remember these being serious bones of contention for your revered leader.

    Is it only the ordinary citizens who must tighten their belt?

    Now if I did not question why one would criticize a man for doing something and then come and do worse than he I would be a real real ignoramus fuh true!

    PS. I assure you, I will not have to work longer.

  4. John Avatar
    John

    I also await the publication of up to date audited financials for the NIS. I say that as I wish to see how much of the assets will be written off for losses in Four Seasons etc. Also the reduction of interest from 7% to 1% will hit the NIS hard as they were forced to purchase well over 1 billion dollars in it over the last few years. Curious to see how their financials will look after these major right offs are applied. A good board would also make provision for other dubious loans the same time. I think if all this is done prior to publishing the financials we will jump when we see what the true net worth is of the NIS fund.

  5. John Avatar
    John

    Not me!!!!

    … but I am flattered!!

  6. Donna Avatar
    Donna

    You are the Sick One. Tron is the Sinister One. He slithers in like a snake and hisses. You have different voices in my head.

  7. John A Avatar
    John A

    Lol John we have 2 Johns on the site. Don’t usually comment here but had to when I read the article by Walter. Just last week I was discussing this issue with others and
    The same concerns were being vented. I really am curious to see how all these issues will be dealt with by the new board. Anyhow if I come on the site again I will call myself John A. So as not to offend you the original John.

  8. Walter Blackman Avatar
    Walter Blackman

    Tron
    April 27, 2019 7:00 PM

    “Walter,
    I was attacked by the structural conservatives and sect supporters of the welfare state (Donna, President Simon et al.) when, a few weeks ago, I proposed raising the retirement age to 75.”

    Tron,
    If you were verbally attacked, I can understand.

    Actions such as raising the NIS retirement age, or reducing the amount of the monthly NIS pension payable to contributors amount to a reduction in benefits. In the USA, this is a very sensitive political issue and Americans have made it known that they will not politically support cuts in social security benefits. They do not mind paying increased contributions in order to maintain benefit levels.
    In Barbados, we have had major increases in contributions and major cuts in benefits under the Sandiford and Arthur administrations. These NIS pension reforms were intended to provide long-term breathing space for the Scheme to operate without much financial stress. Obviously, the first reform did not produce the long-term results, and neither did the second. Too much of the NIS increased contributions ended up in the hands of persons who were not entitled to receive NIS benefits.The absence of audited financial reports for the NIS is all part of a grand design. Not producing these audited reports of the people’s business ensures a promotion.
    As a people, we are so silly, that some hapless young Barbadian who is going to school today will get pilloried and vilified by us when the NIS inevitably collapses under his/her political watch sometime in the future. Chances are, those who have already raided the Bajan treasury have gone “underground” and are feeling quite assured that they will live lavishly and freely forever.

    By the way, on what basis, and for what reason did you propose raising the NIS retirement age to 75 years? As a civic-minded citizen, your role is not to meekly accept corruption. mediocrity and incompetence and then say to yourself “Ah well, ‘wunna’ Bajans want a welfare state, then ‘wunna’ better get up off ‘wunna’ backsides and work forever.” Instead, you should be arguing that it is criminally wrong for Barbadians to be forever paying increased contributions in order to receive greatly reduced benefits, because the NIS contributions are being diverted and siphoned off..

    I would not encourage anyone to believe that Barbadians will remain docile and passive forever. Thousands of our brothers and sisters will be condemned to live out their retirement years in poverty if the NIS collapses. Like the Empire, they will find a way to strike back.

  9. Walter Blackman Avatar
    Walter Blackman

    John A
    April 27, 2019 9:29 PM

    “Don’t usually comment here but had to when I read the article by Walter. Just last week I was discussing this issue with others and the same concerns were being vented.”

    John A,
    I am extremely delighted to welcome you and your comments. I sincerely hope that you will find the time, as the days go by, to express your feelings and concerns here. No one “planned” to put Barbados in the perilous state in which it “now finds itself” and I daresay, no single person has a roadmap to lead us all from this hellish nightmare back to paradise.
    We do not want to admit it, but we are hopelessly lost. New voices, and new perspectives added to the old ones, might serve to produce a glimmer of hope within all of us again.

  10. John A Avatar
    John A

    Thanks Walter one other concern I have is with the true market value of some of the buildings built recently by The NIS fund for rental back to government. If they were sizeable ” over runs” for lack of a better word, on these buildings has the NIS booked the value of these buildings at the inflated cost? Have independent valuations been done on these buildings to obtain their true market value, or are we booking assets that are grossly inflated by building costs? If so will the new board adjust these assets on book to represent their true market value? I honestly don’t envy the job the new NIS board has, but in order to arrive at the true value of the fund all these issues must be addressed.

  11. Bajan in NY Avatar
    Bajan in NY

    I have been advising my nephews and nieces, who are in their 30s, do all that can to remain healthy and able to work and don’t expect NIS benefits until the age of at least 75.
    I knew we in serious trouble when minister Dennis Kellman repeated stated that government paper was the best place for NIS funds to be invested.

  12. David Avatar
    David

    Thanks again Walter. There is a focus by some commenters et al that a solution to the NIS challenge is to extend the age eligibility and forget the mismanagement of fund. Then again there will be no admission by government they have been mismanaging the fund.

  13. Walter Blackman Avatar
    Walter Blackman

    John A
    April 27, 2019 10:37 PM

    “…… one other concern I have is with the true market value of some of the buildings built recently by The NIS fund for rental back to government. If they were sizeable ” over runs” for lack of a better word, on these buildings has the NIS booked the value of these buildings at the inflated cost? Have independent valuations been done on these buildings to obtain their true market value, or are we booking assets that are grossly inflated by building costs?”

    John A,
    One night, around April 2009, I was a guest on VOB’s “Tell It Like It Is” programme hosted by the late Matthew Farley. Around that time, after reading the actuarial reports which were produced and published very late, I was very aware of the fact that the foreign actuary had become quite concerned about the risk that the heavy investment in government paper was posing to the NIS of Barbados. The actuary repeatedly advised the Barbados government to stop borrowing NIS funds but his advice fell on deaf ears.

    A caller asked me for my opinion on whether the NIS funds should be used to construct a building of government offices at Warrens. My reply was along the lines of “certainly not, since the politicians have already spent 60% of the cash that made up the NIS fund and are replacing the cash with government paper. This is not a practice that should be encouraged.”

    Once some Barbadians smell taxpayers’ money, they would kill their mother if she stood in their way. In the twinkling of an eye, the then Chairman of the NIS, Jepter Ince came on the programme and started spouting a load of nonsense about the government will be paying interest on the loan at a rate higher than that recommended by the actuary. Mind you, the actuary had clearly stated that more investment in government paper should not be made. He had not said anything about investing in government paper at a higher interest rate.
    Jepter accused me of coming to the programme unprepared and misleading the Barbadian public. I asked him, as Chairman, if he was aware that government’s use of NIS money had become a major problem. He did not. I asked him what percentage of NIS funds had already been used by government. He did not know. I was defending the NIS fund and the interests of Barbadians as contributors and beneficiaries but just before I left the studio, I received a call from Peter Wickham accusing me of adopting a confrontational stance against the government. From the events of that night alone, I knew where the country was headed. The CLICO grand heist, and the widescale raping of the country therefore came as no surprise to me. I have told this story here on BU before, but I believe it is worth repeating. I felt as if I was the lone voice in the country shouting “Wake up! Wake up!” whilst everyone slept soundly. Even at this point, whilst the house is burning down, many are still asleep. I don’t believe that they will be saved.

    However, your concern is about the valuation and booking of NIS’ assets, so I have digressed.

    Unfortunately, in the absence of observed rules and regulations, every single governmental transaction worldwide represents an opportunity for corruption. You seem to understand, and have already hinted at the kickbacks which can lead to serious cost overruns when government-owned buildings are being constructed.
    What you don’t seem to understand yet is that a similar result obtains when government’s assets are being sold.

    Let us assume that a building really cost $300 million to construct but corruption and kickbacks caused the final cost to be $500 million. Let us also assume that the building appears on the balance sheet as an asset valued at $500 million. If this building is to be sold, there will not be many buyers lined up, so do not expect a process of competitive bidding. A politician will seek out “his” buyer (preferably white and foreign) and inform him/her that the building will be officially sold for $300 million. That is the amount the government will receive. The purchaser will then be asked to deposit another $50 million in the account of someone identified by the politician. This is the kickback. Regardless of whatever value was being shown on the books, when the rubber finally hit the road, the sale price had no relationship with the market value. This example shows that $200 million went into the pockets of someone when the building was being constructed and $150 million got siphoned off when the building was being sold. Multi-millionaires were produced without a day’s work being done. Unbridled corruption has destroyed the fabric of many small, third world countries in a jiffy.

    I have given you an example of how politicians routinely attempt to collect money from selling government assets. For homework, you should analyze the newspaper reports of how a hotel was being lined up to be “sold” just before the last general election.

  14. David Avatar
    David

    Prime Minister Mia Mottley has shown a willingness- right or wrongly- to tackle the many issues of government EXCEPT the NIS Scheme. She has admitted publicly the current state of the fund is a concern yet we have not seen a commensurate response from civil society given the importance of the Fund.

  15. Walter Blackman Avatar
    Walter Blackman

    David
    April 27, 2019 10:57 PM

    “Thanks again Walter. There is a focus by some commenters et al that a solution to the NIS challenge is to extend the age eligibility and forget the mismanagement of fund.”

    David,
    I have been spending a lot of time trying to get a handle on the psychological makeup of Barbadians. What I have gathered so far is that if you are doing something progressive and beneficial, they would become engaged and play their part.
    Barbadians know and appreciate good quality. Similarly, they cannot be fooled by mediocrity. One only has to go into the House of Assembly today and if there are 6 persons in the public gallery, they might be there simply because the rain is falling, and that is the best form of shelter they can find. Barbadians have no real deep interest in what our politicians have to say. They are sick of the deception, corruption, and lies. Compare that sad state of affairs with the packed gallery during the era of quality debates led by Grantley Adams, Errol Barrow, and Tom Adams.
    In cricket, packed stands at Kensington Oval have now been replaced by a few souls who have nothing better to do with their time.

    In the area of governance, the tale of woe continues. Barbadians seem to be anticipating the problems that corruption brings and adjusting their expectations to suit. Only today, I heard one of my compatriots using Rodney Wilkinson, his phantom cars, and no trial to date as an example of how things are done in this country. Thousands of lives have been adversely affected by the CLICO robbery, and almost all of them appear to have looked past the corrupt perpetrators and resigned themselves to a miserable existence.
    All of us know that billions of our NIS dollars have been mismanaged and misappropriated, so in true Barbadian style, rather than focus on making our system of governance stronger and making our “servants” more accountable to their “masters”, we prepare ourselves for the increased contributions, reduced benefits, and increasing retirement age that mismanagement and corruption inevitably bring. Some of us seem to think that it is ridiculous to expect the NIS to produce audited financial statements.

    At the social level, every time a murder is committed, the very first thing we try to do is to determine whether the person killed was a member of a gang, or involved in drugs. Once we get an answer in the affirmative, we convince ourselves that the victim got what they deserved and all is well in paradise. Nothing to fear.

    But all is not well. We now have a tale of two different Barbados being told. On one hand, we have the older Barbadians who never had the courage to stand up for what is right, and who have seemingly lost the will to defend their own interests. On the other hand, we have the younger Barbadians who have no respect for human life, who have very few opportunities to pursue any meaningful dreams on the island, who are prepared to kill any of us in a flash if they feel like doing it, and who have the politicians and the society as a whole feeling the icy chill of fear occasionally. An unprecedented 21 Barbadians have been murdered before May day in Barbados. Is this an aberration, or is it one of the social backlashes that the corruption of politicians have brought to our doorsteps? Time alone will tell.

    Most of these younger Barbadians are not engaged. They are not interested in our social organizations. They are not even interested in being around “old” people. Yet, they are our country’s future. Go figure.

  16. David Avatar
    David

    @Walter

    Given the uncertainty and obvious poor financial state of the Fund is it a reasonable to conclude Barbadians eligible for early pension will sign up? Impact?

  17. Walter Blackman Avatar
    Walter Blackman

    David
    April 28, 2019 1:11 AM

    “Prime Minister Mia Mottley has shown a willingness- right or wrongly- to tackle the many issues of government EXCEPT the NIS Scheme. She has admitted publicly the current state of the fund is a concern……”

    David,
    When the economy of Barbados was stronger, the tools used to “fix” the NIS were: adjustment to the benefit formula, increased contributions, and increased retirement age.

    The economy is now seriously out of equilibrium, and the baby boomers have started retiring. Many of these baby boomers are expected to become centenarians. Very soon, government will be asked to start paying cash into the NIS so that benefits can continue to be paid. In a no-growth economy, where is government going to find the billions of dollars to pay back the NIS?

    The Government just raised bus fares to $3.50 per trip and that action caused many Barbadians to cry out in financial anguish. Additionally, the imposition of the sewerage tax on something as vital as water has resulted in many water bills being sent out by the BWA stamped “Due for disconnection”. When will the government be forced to open up the stand pipes in villages all across Barbados again?

    The PM doesn’t have many NIS options available to her. Increased contributions might very well be off the table, so she will be confined to increasing the NIS retirement age, and cutting NIS benefits.

    We shall see.

  18. NorthernObserver Avatar
    NorthernObserver

    @WB
    I must ask the value of playing the ‘race card’? Do you think this will awaken dormant members of the majority to take a greater interest in the financial affairs of the island?
    I am well aware of a few in the minority population who were opposed, but none I knew of, had any lot of money, certainly not to fund generations.[not that these people did not exist] Their fear, was the NIS would become politicized, and there wouldn’t be a cent left for anybody. No lot of money = no political clout, don’t mind what your skin tone is, unless one wished to adopt ‘party supporter’ status.

    @Blogmaster
    “a commensurate response from civil society”. Society in general is very ignorant everywhere about public financial matters unless it concerns them, preferably next week and not in the future. Since 2014 we had been advising people to reduce holding of GoB paper to zero. It was amazing how many got caught holding some; they didn’t wish to believe, the GoB could be in so deep as to require default. You know, ‘tings bad but we will be ok’. They treat the NIS the same way. Avoid.

  19. WARU, Crazy & Unstable, Hogging the Blog Avatar
    WARU, Crazy & Unstable, Hogging the Blog

    “In a no-growth economy, where is government going to find the billions of dollars to pay back the NIS?”

    over 120,000 offshore accounts….

  20. Walter Blackman Avatar
    Walter Blackman

    David
    April 28, 2019 2:22 AM

    “@Walter
    Given the uncertainty and obvious poor financial state of the Fund is it a reasonable to conclude Barbadians eligible for early pension will sign up? Impact?”

    David,
    Many of my friends have decided to take their NIS early for different reasons. One reason is the poor financial state of the fund. Another reason is the poor state of health that some of them are in. Yet another reason is that some of them have found themselves in a financial bind, and the early NIS pension is the only solution.

    However, earning income from another source whilst receiving NIS brings income tax into the picture. A person opting to receive NIS benefits early whilst receiving other income might end up in a higher tax bracket, and this might be enough to trigger a decision not to receive the NIS early. In the USA, there is a clawback feature which reduces the amount of your social security check based on how much income you earn from other sources.

    Every individual has to analyze his/her situation and decide what is best for him/her.

    The cash flow impact on the scheme can be managed by the actuary making an assumption as to how many contributors will retire early, how many will retire at normal retirement age, and how many will retire late. The life expectancy of a female Barbadian at birth is 78 yrs, whilst that for her male counterpart is 73 years. However the life expectancy of a person receiving NIS benefits at age 67 might very well be 15 years or more. As I said before, the NIS might have to pay benefits to some individual pensioners for 35 years or more.

    Ideally, the NIS should have a certain amount of short term assets and long term assets to match the nature of its liabilities. If there is an asset-liability mismatch, then the scheme might be forced to sell off highly illiquid long term assets to satisfy short term liabilities. The skill set of NIS staff in this regard must be adequate if the scheme is to be administered efficiently.

    Finally, people are not stupid. Somewhere along the line, young workers might figure out that they are contributing to the NIS simply to support an older generation, whilst no benefits will be left to support them when they retire. In such a scenario, workers will do their utmost to avoid making contributions. This is precisely the attitude that most self employed workers have adopted since the scheme started, and if carried to its logical conclusion, can trigger the collapse of the scheme..

  21. Walter Blackman Avatar
    Walter Blackman

    NorthernObserver
    April 28, 2019 2:53 AM

    “@WB
    I must ask the value of playing the ‘race card’? Do you think this will awaken dormant members of the majority to take a greater interest in the financial affairs of the island?
    I am well aware of a few in the minority population who were opposed, but none I knew of, had any lot of money, certainly not to fund generations.[not that these people did not exist] Their fear, was the NIS would become politicized, and there wouldn’t be a cent left for anybody.”

    NorthernObserver,
    I believe that the time has come for all Barbadians to have this type of informed discussion. If you discuss Barbados and you do not touch colour and class, you are wasting your time.

    I said that “some anti-progressive minded members of the white minority” in Barbados opposed the concept of the NIS because they had no need for it.They were rich enough. I know some of the persons with this attitude.
    You agreed that some whites were opposed, but the ones you knew did not want to contribute because the NIS would become politicized. I suspect that we are both right, so let us agree that some whites opposed the creation of the NIS, but for more than one reason.

    I also made mention of “black politicians from poor, humble origins taking up the hard-earned NIS money of Barbadian taxpayers and stupidly giving it away”. To your mind, when did I play the race card? When I mentioned some members of the white minority, or when I mentioned the black politicians?

    Didn’t you hear Bizzy brag about how he bribes politicians? If so, how did you feel when you saw Bizzy brandishing about cheques drawn from the NIS fund? Did you ever stop to wonder if there was “bribery” in some of those cheques he was waving? Don’t you think Bizzy is in a position to provide for his great great grand children without bribing politicians and putting his grimy hands on the taxpayers’ and NIS money?
    You and I are not the culprits here, so my questions to you are merely rhetorical. I am not trying to put you on the spot either.

    For what he did to the poor people of Barbados, Sinckler deserves to face a firing squad. For bribing Barbadian politicians and bragging about it, Bizzy ought to be “lost away” in jail, along with every politician he bribed.

  22. David Avatar
    David

    It is noteworthy the Opposition political parties with the exception of the UPP (limited advocacy) have allowed their political agenda to be reactive.

  23. Tron Avatar
    Tron

    @Donna April 27, 2019 7:25 PM

    You can save yourself the rhetorical hyperventilation. As far as the dismantling of the state is concerned, I am completely on your side! As you know, I try to be impartial. On the one hand I don’t want to criticize our honoured Prime Minister constantly like many others here. On the other hand, it is legitimate to suggest improvements here.

    “I strongly opined that we need to adjust our expectations, develop a taste for mauby until we can afford champagne, work harder and smarter, and make a paradigm shift away from complete dependence on government?”

    I agree 100 %

    “By the way – has the cabinet been reduced to lower than the Stuart cabinet?”

    You’re absolutely right here, too. For a small island or a micro-state like Barbados, a government with five cabinet ministers and ten state secretaries is sufficient. The rest has just accumulated over the years, because the locals have learned nothing except civil servantship, filing credit applications and begging at school.

    But reducing the number of ministers must only be the beginning. We do not need a Senate, we do not need a three-tier jurisdiction, we do not need the many missions and embassies abroad, we do not need state enterprises and we do not need 30,000 civil servants in Barbados.

  24. Tron Avatar
    Tron

    @ Walter Blackman April 27, 2019 9:31 PM

    You’re absolutely right that it can’t just be about unavoidable cuts in benefits. Of course, we must also bring to justice those who have misappropriated NIS funds over the past decades.

    The first thing that comes to mind is the name Dr Robinson. His name is linked to the unfortunate history of the Apes Hill Plantation’s Club House. How can this man be dean of a faculty when he has failed terribly as chairman of the NIS board?

  25. William Skniiner Avatar
    William Skniiner

    @ Walter Blackman

    Perhaps when we talk about leadership we should look inward at BU. We have convenient and selective leadership right here. People like Carl Moore were banished because they called for this type of discussion; on several occasions the blogmaster has deemed many JA and RH. Of course he allowed innuendo to flourish because the strategy was to exchange one political demon for the other. Now that it is back firing attempts are being made to fool serious people that there was a Damascus moment.
    Above is a classical example. In responding to what the current leadership would do in the case of the NIS, he responds thus:
    “It is noteworthy the Opposition political parties with the exception of the UPP (limited advocacy) have allowed their political agenda to be reactive.” That is an attempt to shift focus and then he would proceed to lament that we have no alternative to the BLPDLP skullduggery and we must do the best we can in the” national interest”. The gullible , not trained in understanding propaganda, would deem him a nationalist when in fact he is a great defender of all that you have highlighted.
    You will note that the much maligned Mark Maloney was the chief beneficiary of the imported medical school at Coverly. You will read in today’s nation that he is now in the forefront of restoring the Empire. You should note further that his involvement in this venture was viciously condemned pre May 24th. 2018. In due course Maloney will own the entire area known as Bay Street because the Hyatt will be built.
    Who will guard the guardians ?
    Your contributions are grounded in your qualifications and experience. You were probably the first to suggest exporting our intellectual talent so that that it could earn better wages and contribute to the national economy by “sending back money”. You suggested this more than twenty years ago as a call in program moderator. We talk about class distinctions in the country but it is highly prevalent on BU. There is only one contributor on BU who has not been cussed in the most vulgar fashion. He has never been called a JA or RH. The best of the queens language is reserved for him-no cuss words. He is addressed with deep respect. Everybody else is fair game !
    Now, get this straight , I am not attempting to drag you or anybody else into my views about the blogmaster. Just a comment .

  26. TheOgazerts Avatar
    TheOgazerts

    Hi Walter,
    It is great to see you back here and contributing.
    You are best when you focus on matters withing your areas of expertise, and for me it become a learning experience.
    You explain things well and even fools like myself can follow without overworking our brains.
    Don’t get distracted.

  27. David Avatar
    David

    @William

    It is too early on a Sunday to have to respond to your lie. Carl Moore was not banished. The Blogmaster’s recollection is that the BU family reacted to Carl Moore’s taunting about posting anonymously. You should post your comment and stop being a Rh.

  28. John Avatar
    John

    Reportedly, the NIS for Barbados was first articulated by Charles Duncan O’Neale almost a century ago.

    From the moment the concept was aired, some anti-progressive minded members of the white minority on the island rationalized that they were wealthy enough to provide for their unborn great-great-great grandchildren and therefore should not be called upon to contribute to any fund which pays out benefits to perceived poor and needy black Barbadians.

    To this very day, some of these white Barbadians are still demanding that they be allowed to opt out of the NIS.

    +++++++++++++++++++++++++++++++++++++

    Again, the “white elephant” injected to divide when google could have helped Walter keep to simple facts.

    From whom do you think the social security scheme with insurance as its finance originated?

    Was it Roosevelt in the US in 1935 or did he get it from somebody else?

    Maybe Roosevelt got it from Charles Duncan O’Neale before O’Neale died in 1936?

    Charles Duncan O’Neale (1879-1936) was educated at Harrison College – hang on a minute, that is impossible as we are told no black people went there in these bad old days – somebody has been lying to us!!!!

    In 1899 he left Barbados to study Medicine at the University of Edinburgh graduating in 1904.

    Impossible … we are told black people were kept in abject poverty in those bad old days!!

    So where would he get the idea for the NIS from?

    Maybe it was where he studied.

    In fact Great Britain passed first an Old Age Pensioner’s Act and then a National Insurance Act in 1911.

    The architect was David Lloyd George.

    “Lloyd George’s Old Age Pension Act, provided between 1 and 5-shillings per week to people over seventy years of age.

    His next major reform was the 1911 National Insurance Act. This provided British workers with insurance against illness and unemployment. All wage-earners had to join his health scheme in which each worker made a weekly contribution, with both the employer and state adding an amount. In return for these payments, free medical attention and medicines were made available, as well as a guaranteed 7-shillings per week unemployment benefit.”

    Who was his partner in this venture?

    Winston Spencer Churchill.

    Where on earth did David Lloyd George get the notion?

    “Lloyd George followed the example of Germany, which under conservative Chancellor Otto von Bismarck had provided compulsory national insurance against sickness from 1884.”

    “After visiting Germany in 1908, Lloyd George said in his 1909 Budget speech that Britain should aim to be “putting ourselves in this field on a level with Germany; we should not emulate them only in armaments.”[1]

    “His measure gave the British working classes the first contributory system of insurance against illness and unemployment.

    The Act only applied to wage earners—about 70% of the work force—their families and the unwaged were not covered.[2]:313–51 ” – WIKI

    The USA adopted the idea and brought it to reality under Roosevelt almost a quarter century after the UK.

    The problem in Barbados was back then and still is an over supply of labour and not enough jobs to go a round!!

    Wage earners are in short supply … lots of “the unwaged”.

    Many Bajans emigrated all over the Globe in search of employment.

    … to British Guyana, Brazil, Argentina Cuba, Panama , USA, Canada, UK Australia, New Zealand etc etc etc!!

    Quite apart from the current stealing, there is another threat to the NIS which we don’t hear being addressed.

    Not enough contributors … too many “unwaged”!!

    … and that is a function of the number of jobs.

    Who creates jobs?

    .. not the politicians … or atleast, not nowadays!!

    Do politicians pay NIS? – pretty sure they must – they are “wage earners”.

    Once upon a time politicians did used to create jobs … and plenty of them!!

    That’s how they got their seat!!

  29. Mariposa Avatar
    Mariposa

    Walter So Sinckler should be put in front of a firing squad
    Then where would u suggest that present leader of this country Mottley be condemed for depleting the Treasury in millions of dollars by way of tax waivers to business and other associates who owed the govt money
    As for u David u are a real slime bag to be referencing any of your contributors in the most despicable manner
    Shame on u RH have a sh.iity day
    Now u can block my comments ja.asss

  30. John Avatar
    John

    The real “white elephant” is jobs!!

    The stealing diminishes what the wage earners create for themselves and of course the “unwaged”, the “non contributory old age pensions”.

    Of course it needs to be addressed and the accounting needs to be done but it might be splitting hairs on a balding man’s head.

    How do we cure the baldness?

  31. John Avatar
    John

    Here is an example of one such former politician, the speaker of the House, Harold Bruce Austin, the namesake of a blogger.

    In 1935 he was knighted.

    He was the Grandson of John Gardner Austin.

    https://newspaperarchive.com/kingston-gleaner-jun-04-1935-p-25/

    Our recent speaker of the house, Michael Carrington provided no jobs besides being caught stealing from a client in private practice!!

  32. Hal Austin Avatar
    Hal Austin

    @ John,

    Who is the blogger?

  33. TheOGazerts Avatar
    TheOGazerts

    How “deep’ is a post?
    I am becoming to believe that a post is good for about the first twenty comments. Then it gets hijacked by 8 different streams
    Trump;
    Socialism/communism
    Evangelicals
    Quakers
    Twistory
    People with a local political agenda
    And like any rumshop, fights between two or more parties

  34. Mariposa Avatar
    Mariposa

    Barbados can be dubbed the land of thieves
    In most instances fingers should be pointed at self especially business owners and self employed who never pay employees acquried amounts into the NIS
    How about them
    The sytem failed because of an avalanche of poor goverence which limit itself to providing financial security for themselves and family
    One can easily look back on Auditor General reports and see how and why the system has failed
    As old folks truthfully states hard ears wont hear later u would feel
    So all the last minute belly aching of where the blame should lie and who should be blame does not add up to a hill of beans unless corrective measures principled by legal and agressive footing is amplified and implemented with no holds barred

  35. Vincent Codrington Avatar
    Vincent Codrington

    Very interesting contributions.
    Basically the NIS is a Pay as You Go system. Its success depends on current workers and employers paying in their contributions every time and on time. It works on the premise that when one retires subsequent workers will pay the retirees’ pensions. The surplus of payments- in over payment- out is what is being invested. The income from these investments pay operating costs of the scheme and short- falls when payments- in fall short of payments- out.

    The problems will arise from bad investments and the alleged accusations that both public and some private organizations are not paying in the contributions. If these are the problems then they ought to be corrected.

    In the present economic and financial climate there are few safe investments. It is understandable why the NIS investments would be concentrated in local private and public investment vehicles.

  36. Mariposa Avatar
    Mariposa

    TheOGazerts April 28, 2019 9:33 AM

    How “deep’ is a post?
    I am becoming to believe that a post is good for about the first twenty comments. Then it gets hijacked by 8 different streams

    So where is your crticial analysis
    The blog already have internal as well as external police
    Hope you are not vying for the post to be in such a category
    My advice to u is to get a “real” job
    BU has been around their is a season when the heat is turned up and when the heat is cooled down
    Btw this is the early dog days of summer so get use to the heated moments on BU
    The blog master has now been seen by many as a spy who loves them

  37. David Avatar
    David

    @Walter

    Any comment on former Minister Kellman’s position that there is nothing wrong with the government syphoning NIS funds to fund public projects to create employment to increase NIS contributions?

    Senator Darcy Boyce made a similar comment I.e a NIS fund cannot be ring fenced/segregated if the economy needs shoring up.

  38. Hal Austin Avatar
    Hal Austin

    In the present economic and financial climate there are few safe investments. It is understandable why the NIS investments would be concentrated in local private and public investment vehicles.(Quote)

    Really?

  39. Vincent Codrington Avatar
    Vincent Codrington

    One more element in the equation is an aging population coupled with the replacement of labour and management by technological innovations. Fewer employees will have to pay the pensions of larger number of pensioners. In the long term this will adjust itself. Fewer workers fewer pensioners.
    I think we may be pushing too many panic buttons. It would be more productive if we try to unearth the real sources of our fears and spend a little more time on real solutions.

  40. Hal Austin Avatar
    Hal Austin

    In the present economic and financial climate there are few safe investments. It is understandable why the NIS investments would be concentrated in local private and public investment vehicles.(Quote)

    Really???

  41. Mariposa Avatar
    Mariposa

    How is it that govt can increase pension to non contributors
    Yet everybody seems well that such should be an accepted policy
    A system that is grounded in political theatrics would failed
    Family and friends first policy is the elephant in the room which has catspraddle the sytem
    Again i reiterate that read all the auditor general reports and see where all the basis of failure and reckless goverence started and continues

  42. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal Austin

    Really.
    Is that how you engage in serious debates? Do you have any safe investments in your neck of the woods? The NIB will be happy to invest in them.

  43. John A Avatar
    John A

    I believe if we are going to look at the NIS Fund we must leave the political favouritism out of the discussion and instead focus on the facts.

    Walter my reason for bringing the buildings to current valuations as opposed to building cost, Will at least allow the fund to book the asset at the true market value. The fund will then have to make the hard decision to write off the difference between market value and building costs on their asset base, if there were in fact over runs.

    The next thing the Fund would need to do then is look at the Rent they are collecting from central government for these buildings and see if the return is realistic now for the written down market value. God forbid that even after writing down the values, the Rent still is below par, then we really have a problem. What this will do over the long run is pull down the return on the fund and weaken it year after year. So we the public need to know A. What is the true market value of these buildings? B. What was the final cost of these buildings and C. at today s rentals to government what is the return on investment on the market value of these buildings? When this and other losses are shared with us only then will we better understand the true “doo doo” the fund is in. We also need to know how many millions were lost in revenue from the debt restructuring income wise and what write offs are in place for Four Seasons etc. Share all this with the public and we will support you.

  44. Hal Austin Avatar
    Hal Austin

    @ William, 8.08

    Again you are right. Just read the response from the chairman, a man who objects to being called a buffoon, but uses the most obscene of language. The man is incapable of civilised debate.
    No wonder the keyboard warriors see no need to be restrained. What some of us want is a more sophisticated debate on important social and economic issues, such as pensions and BERT.

  45. Hal Austin Avatar
    Hal Austin

    @ Vincent,

    We have had this discussion before and clearly you are not basing your views on facts, but resorting to making silly childish remarks. What has been the performance of the S&P over the last nine months, since the Mottley government came to power? What has been the performance of the FTSE 100? What has been the performance of the global economy?
    I am not going to repeat myself. Just look at the NIS’ investment policy, the problem is asset allocation and stock picking, a poverty of ideas; but the root problem is that we need a totally new system. Re-read my discussions on the topic on BU to see my views and suggestions. Only yesterday (Saturday) I re-posted one.
    Both Dr Robinson and Mr Kellman have been in a meeting at the Barbados high commission in London when I again presented an analysis and made suggestions; I know from that public discussion that Mr Kellman’s knowledge of pensions policy is limited.
    I posted a critique in my Notes and the late David Thompson asked Dr Robinson to reply and that was followed by another discussion. All that was mentioned previously on BU.
    I also responded on BU to the public meeting held by Oppenheimer at the Frank Collymore Hall a few years ago in which they talked about ice cream and a return of 6 per cent on investments. If you want a serious debate, then suggest ways of improving the NIS and I will say if I agree or disagree. Or shut up.
    Get pensions experts involved: pensions lawyers, policy specialists, scheme actuaries, investment actuaries, general actuaries, pensions economists, etc. Let us have a grown up discussion.

  46. John Avatar
    John

    David
    April 28, 2019 9:48 AM

    @Walter
    Any comment on former Minister Kellman’s position that there is nothing wrong with the government syphoning NIS funds to fund public projects to create employment to increase NIS contributions?

    +++++++++++++++++++++++++++

    How many people has the GOB laid off and made redundant?

    How many jobs has it “created”?

    The answer to the question is blowing in the wind for anyone who cares to look!!

  47. John Avatar
    John

    Layoffs, GOB or otherwise mean two things.

    NIS gets no income for the period the person remains unwaged.

    NIS pays the unwaged unemployment benefits.

    That’s how it works.

  48. John Avatar
    John

    Its insurance and any insurance is a gamble.

  49. William Skinner Avatar
    William Skinner

    @ Hal
    There is a reason why the political class behaves as it does. The blogmaster’s response says it all. It was NOT that Carl Moore opposed anonymous contributors. It was the most personal and nasty responses that vilified the man and his professional achievements.
    Calling me names mean absolutely nothing because my name is well known. I have been contributing to national debate before I even left high school. Some of my closest friends are members and or supporters of the BLPDLP. They know William Skinner!
    Immediately after the defeat of the NDP in 1991, I was encouraged to join the Dems or Bees. I opted to do neither. Perhaps the wisest decision, I have ever made.
    At least on that occasion , I was neither a JA nor a RH. Just a citizen who smells the political stench that persistently comes from within the bowels of the apologists

  50. Vincent Codrington Avatar
    Vincent Codrington

    @ Hal at10 :00 AM

    Your Rh factor is really higher than I was led to believe. Rh meaning rhesus or any other words you prefer or infer.

The blogmaster invites you to join the discussion.

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