UNEMPLOYMENT Fund is Broke, Time for Straight Talk Chairman Leslie Haynes
The following was posted as a comment by Walter Blackman to the Walter Blackman’s Political Insights blog – David, Blogmaster
Based on the link to the NIS investments, provided by NorthernObserver, all BU readers can now sing from the same Hymn sheet – see link https://www.nis.gov.bb/investments-2/
Here are the facts, and the questions to be asked:
The unemployment Fund is broke. Not a cent is left. No bonds, no cash. Nada. Zilch. Rien.
Where will the money come from to pay current and future unemployment benefits? Remedial action has to come down the pipeline very soon.
Government owes (i.e the politicians misused our money) $2.8 billion to the National Insurance Fund, and $0.1 billion to the Severance Fund. There is no cash in the Severance Fund. Where is the money currently coming from to pay the workers’ severance that employers are refusing to pay?
Is the law being broken with respect to the payment of unemployment and severance benefits?
The only way Government can repay the money owed to the NIS is through taxation. Who will the Government tax to get the $2.9 billion for the NIS?
The Baby Boomers have started to retire and will do so by the thousands every year until 2033. How will their retirement benefits be paid? Something has to be done very soon
At the beginning of 2015, the NIS was paying roughly $40 million per month (just think about the multiplier effect this has on our economy) in NIS retirement pensions. That amounts to $480 million per year, and $960 million over two years.
We can therefore understand what the Chairman of the NIS meant when he said: “there are sufficient funds there that we can see this through at least for the next two years.”
However, the Chairman went on to say: “So there is no cause for concern.”
Every BU reader can now look the Chairman of the NIS fully in the face and say: “We do not agree with your assessment of the NIS, Mr. Chairman. There is great, great cause for concern, and in fact, we are very, very concerned. Next time you speak, please tell us what is the Board’s solutions to the massive NIS problems we face.”
…what are the Board’s solutions?