The following important comment was posted by Actuary and Talk Show host Walter Blackman to respond to a comment raised on the blog 60 Love Can Lose – Blogmaster
Pensions have surfaced as an extremely important issue at this stage of our national development, so I want to commend you for bringing this pension-related matter to the attention of BU readers.
The challenge for me is to distil esoteric, actuarial and mathematical concepts into information that you and all BU readers can understand. Please forgive me if I fail to overcome that challenge
We grew up hearing that one of the major benefits derived from working for the government was the receipt of a pension and gratuity.
I will use a 5-year average pay of $5,000 (assumed to be under the NIS ceiling, for illustrative purposes only). I simply want to show how the changes in pension legislation have affected government workers hired before September 1, 1975, those hired on or after September 1, 1975, and those to be hired on or after January 1, 2023.
A person born on January 1, 1945, who was hired before September 1, 1975 and who retired after 33 1/3 years of service will receive the following:
- Government pension = $3,333.33
- NIS Pension = $3,000
- Total Pensions received = $6,333.33
Note that this pensioner is receiving a total monthly pension which is greater than the pay he was getting as an active worker.
This was a problem that the government decided to solve.A person born on January 1, 1945, who was hired on or after September 1, 1975 and who retired after 33 1/3 years of service will receive the following:
- Government pension = $333.33
- NIS Pension = $3,000
- Total Pensions received = $3,333.33
Note the drastic reduction in government pension. This was not the best approach to be taken by the Government of Barbados to solve the pension problem.
A person born on January 1, 2003, who will be hired on or after January 1, 2023 and who will retire after the following years or less of service will receive the following:
- Government pension (1-36 years of service) = $0
- Government pension (37 years of service) = $$83.33
- Government pension (38 years of service) = $166.67
- Government pension (39 years of service) = $250.00
- Government pension (40 years of service) = $333.33
This proposed pension formula makes a bad situation worse. The unions ought to make their voices heard.
Note:
Gratuity = 25% x monthly pension x 150
Pension to be paid = 0.75% of calculated pension
For example:
Government Pension = $3,333.33 per month
Gratuity = $125,000.00
Monthly Pension to be paid = $2,500.00
We have argued for decades that one of the aims of neoliberalism was to collapse all the social security and pension systems. Private and public.
In recent decades this clear intention could have been clearly seen in the way both governing tools have been deployed to loot systems once thought to be sacrosanct.
Any Washington Consensus sponsored meme about pension reform was always Orwellian double-speak for the radical reductions in emoluments, hard earned, generally below market rates over time and representing an historic thief from people expecting a baseline, fixed income, in retirement, even in its insufficiency.
This cowardly act will not avoid the coming wave of government bankruptcies starting in Laos and Sri Lanka. Indeed, these pension reform projects by satraps will only hasten the systemic collapse of neoliberalism, as an economic system, now made more and more unavoidable.
Somebody should tell the Mottley crew to stop listening to the people in Washington.
In the private sector, long gone are the days when defined benefit retirement plans were the gold standard.
These days money purchase plans, not subject to COLA and other adjustments in retirement dominate for those still getting pensions.
The first point Walter made is very important. The NIS stands on its own. Government pensions are separate from that. NIS pensions have their own contributions from employees and employers.
Combining the two pensions and looking at them together is wrong. Seems like there is basically no such thing as a government pension now, effectively. Almost nothing after all those years of service. There is really only an NIS pension. (And even that has been threatened by government raids, declining working population aside.)
Walter has put everything into its correct perspective for us.
These are the bare facts. Workers up the creek without a paddle.
Pass the mike to Toni Moore, please!
Why are we surprised that we have found ourselves where we are with the NIS? It has been grossly mismanaged and manipulated by ALL polticians for at least the last 2 decades.
As i said on another thread here the dems forced billions of worthless paper on them and the bees slashed the return on that paper to nearly zero. Did Aunty Mia not stop to think what a cut in earnings from 7% to 1% on roughly $2 billion in bonds would mean to the cashflow of the NIS? Why then was no provision made by government when this was done to sure up the cashflow of the NIS? Insted that has bled money from that action for over 2 years. Add to that the lost of income from covid related layoffs and piss poor “investments” over the years and you have a basically insolvent entity that we are told is ” our life line.”
So what do we do after the above? Well rather than adressing the problem we play with the retirement age and benefits. Newsflash leaders you will never be able to “adjust” benefits enough to make up for the devistation i outlined above. Yet i hear on the radio government saying to the public and self employed, ” you must pay your NIS for your old age.” Basically you are saying to them invest in an insolvent entitiy where we can change the age of maturity at a whim along with the benefits, but dont mind wunna put you money here. You all have demonstrated gross mismanagemet of the peoples pension money for decades, dipping in it when wunna want and yet we are to have confidence in the NIS?
Listen dont offer free education to people and then treat them like fools. When you all sure up the fund and can present the audited up to daye financials on the said entity for all to see. then come badk and talk to me about this ” glorious national entity that is my lifeline.”
@John A
From outside looking in it seems obvious they are making it up as they go along as it pertains to the NIS. Underlying the mismanagement is the lack of serious debate by independents largely because timely audited statements are never available. This applies to the actuarial reports due every 3 years?
We here now, what do we do?
It seems we have little room to make decisions as Walter points out. We increase age eligibility, we amend pension formula to pay less, we reallocate revenue from other areas? We increase the immigrant population to help with increasing new jobs and tax base?
What?
David
All pension systems are under pressure worldwide, not only Batbados government pensions. And have been for decades.
We have to cast a wider net.
What do you suggest Pacha? Give tax relief to encourage registering in private plans?
@ David
The fund is no different to any other business. You must have a surplus of infllows over outflows. This has not been the case for years and i woukd bet money an audit would confirm this.
Lets look at the sinkyuh/Mia scenario alone. $2B moving from 7% to 1% would of cost the fund a loss of $120 million in cash flow annually! Add to the that foolish investments like the Grotto where the rents can even pay for the tiles and you begin to understand the condition the fund is in. Then look at all the other properties the fund has. Are the rents up to date? Do they reflect a rent that offers a decent return on investment for the fund?
The little tap dances this government has done with the fund in terms of changes, can not begin to have any real effect on the funds solvency. Bringing in more people and all the other nonesence they talk does not address the core problem with the fund. You first need to get to a point where the funds true earnings and asset base can be identified. That means an external audit and full independant assesment of its assets in terms of rates of return. The fund in other words first must be returned to a financially strong entity. This can only be done by a large cashflow injection in the form of a government grant and not a loan either. Stop and think of the nonesence the fund was used for. Clear Water Inv an alleged $100M gone dey! The restructuring $120M a year lost dey! $2B in promissory notes called bonds from central government dead dey! Tens of millions used by Sinkyuh to keep civil servants in jobs till elections which he still lost 30 to 0 and the list goes on and on and on.
I doubt in the history of Barbados there will ever be a more mismanaged and pilfered entity than the same dam NIS.
@John A
How would you respond to Pacha’s above intervention?
How does Barbados build a firewall around the NIS if it’s viability depends on government’s handling of the economy?
@ David
I agree with Pacha that broadening the net will help, but only after the measures I outlined have been taken. If this is not done its like putting 2 hoses in a bucket with nuff holes and expecting it to fill faster.
David
Our point is that ALL pension systems are under mounting pressures worldwide. Not only a Barbados government pension.
We’ve stated that even in the private sector defined benefit pensions or retirements plans have been replaced with money purchase plans almost universally.
There is no place to hide from this problem which has been engulfing us for decades.
A money purchase plan is what the private sector will best give. If they don’t go broke prior. In other words pensioners are left with an acculmated sum in a 401K, in the case of the USA, to at retirement purchase a stream of payments plan.
David
Deal with neoliberalism, your friend, for concrete answers.
Further, the assets of the social security system in the very USA are largely made up of IOUs.
Meaning the government has spent the savings and promises to repay.
Then the problem becomes one of toooo much debt. These “unfunded liabilities”, and more, make real US debt levels 300 trillion. As oppose to the 30 trillion as measured by accumulated deficits.
And if neoliberalism will expose Americans in such ways what of Bajans?
All the debt must be removed from the international system, as primary causation.
The difference is the usa can print usd and we can’t. We also can not sell the NIS bonds on any secondary market either here, so government is the only client basically for government bonds. The usa can sell debt to China or anyone who thinks their paper safe, as has been the case for years. Our situation is therefore quite different to the usa. Also after the default our paper is not seen the way it was by many who previously would of gobbled up a bond issue locally.
Anyhow do not let us get side tracked here our concern is the local NIS here on de rock. Let others worry about their own problems.
@John A
Was waiting patiently for someone to make that point. The USD is still the world’s reserve currency. A monetary system built on a FIAT foundation.
@ David
Yep their situation is quite different to ours. When we borrow we repay in hard currency. We can print all the Bajan dollars we want they are worthless when it comes to repaying foreign debt.
The problem our NIS has is its saddled with way too much government paper earning very little. Its assets can’t earn enough to keep pace with inflation and we don’t have the money for the size of cash injection required to stabilise it either. Heard the PM say it needs to be addressed urgently but I doubt you will see anyone tackle that demon in any real way. Instead you will see a patch here and a trim there approach.
In Walter’s comment on the other blog he suggested the government needs to prioritize allocation of funds to the NIS. Your view as well?
David
Dream on!
@ David
Yes I agree with Walter for sure the only real fix is a sizeable cash injection. This must also not be passed off as a repayment or purchase of a bond either. In others words a straight forward cash injection that will show in the audit as a recapitalisation and nothing else.
@John A
Wouldn’t that suggestion derail the work done so far to restructure debt?
Pachamama
June 25, 2022 3:22 AM
“In the private sector, long gone are the days when defined benefit retirement plans were the gold standard.
These days money purchase plans, not subject to COLA and other adjustments in retirement dominate for those still getting pensions”.
Pacha,
You are correct.
The recent trend has been a moving away by pension plan sponsors from Defined Benefit (DB) plans towards Defined Contribution (DC) plans.
However, in Barbados, DC plans present a challenge.
For DC plans, you must consider the fact that the employees in the plan are of different ages. Therefore, employers have to offer different investment options for the young, the not so young, and those employees nearing retirement.
For example, you can provide an investment option for young employees made up of a heavier concentration of stocks, whilst for employees nearing retirement, the investment option should be primarily made up of fixed income securities such as bonds, and mutual funds.
Unfortunately, we have very limited investment options in Barbados.
One way to solve this problem is for the actuary to design a Cash Balance (CB) plan, which looks and behaves like a DC plan, but which really is a DB plan. Cash balance plans have not yet hit the market in Barbados.
Donna
June 25, 2022 4:05 AM
“The first point Walter made is very important. The NIS stands on its own. Government pensions are separate from that. NIS pensions have their own contributions from employees and employers.”
Donna,
Unless my ears were deceiving me, I heard the PM on the news saying that she was bringing this new pension formula to make the NIS strong.
Enlightened BU readers like you know fully now that the PM was ill-advised in making that statement. It simply made no sense.
Barbadian taxpayers’ money, in the form of consultancy fees, wasted.
@Walter
The NIS Board report to a BOD and to Cabinet?
The USD is still the world’s reserve currency……David you only said that to piss off Pacha.
This thread seems to be void thus far of @VC to assure us things are unfolding as they should.
I wonder what the annual cost savings to the CF will be?
Surely this change will be challenged in the Courts.
@NO
What continues to be most amazing is the inability to produce up to date audited financials of our most important fund and there is no urgency by those in charge AND the media AND PO Political Opposition AND citizens to shoutout about it.
‘Somebody should tell the Mottley crew to stop listening to the people in Washington.”
these are only interesed in fake prestige NOT REALITY…..their world stage name is the Earth Worm…always looking for a string to pull……sorry can’t give up any of my sources…lol
“Meaning the government has spent the savings and promises to repay.”
they did say 25 years ago it will all collapse…and here we are…
We are about or are witnessing the ruthless economic dismemberment of the middle class. This in effect means there is little or no hope for the lower economic class .
Wastage, widespread corruption ,poor economic planning and governance have brought us to this dangerous point.
To basically wipe out the hard earned retirement benefits of our people is a crime.
We were warned time and time again by @Pacha and@Waru, that this would be the end result when all the cliches and feel good vernacular speeches could not escape reality forever.
We are constantly turning up with little weak twigs to fight those who have big sticks.
The price we pay for doing little or nothing but fooling ourselves we are doing a whole lot.
Peace.
“Enlightened BU readers like you know fully now that the PM was ill-advised in making that statement. It simply made no sense.”
~~~~~~~~~~~~~~
With the obvious exception of Lorenzo, it has to be obvious now to everyone (and that includes Enuff 🙂 ) that Miss Mottley is suffering from the Peter principle. This is a common weakness of shiite talkers who are able to impress with their words. especially when they surround themselves with shiite-hounds, batty-boys and their various women cohorts where SOUND ADVICE is scarce.
Unfortunately, the challenges of leadership in this time is not designed for the mediocre.
A careful study will show that this government has NOT been able to accomplish ONE SHIITE that that required ANY effort.
Not even the easy shiit has worked out….
The Republic was meant to be a ‘show of leadership and success’….. LOL what a brass bowl mess….
The Chinese houses were designed to score a BIG housing success…. MURDUH!!!
The vaccine gambit was sure to be a RADICAL example of leadership…. WUHLOSS!!!
All they managed to do successfully was remove the two most useful and sensible persons in the government from office – namely Atherley and his appointee Caswell. Only Lorenzo and Enuff sees this as a benefit to the country.
Now we have 30 pathetic lackies acting EXACTLY like blind brass bowls in a dark room of questionable constitutionality, while feeling up a wild elephant called INFLATION …
…al this at the VERY WORSE POSSIBLE TIME in our history of mediocrity, when we DESPERATELY NEED some vision and sensible leadership.
It is A PERFECT storm for Titanic outcomes….
@Bush Tea
You punching hard.
@ NO
“What continues to be most amazing is the inability to produce up to date audited financials”
~~~~~~~~~~~~
Can Bushie assist you with this one..?
This may be difficult for you to internalize, but there is a VERY GOOD reason for this lack of interest….
99.9% of Bajans do not have the SLIGHTEST IDEA what such financial reports mean, say, or portend. – and that INCLUDES most of the JAs making the decisions…..
That explains why there are no COMPLAINTS.
As to why there are no FINANCIALS, the bushman suspects that no news is better than bad news..
Indeed, except for yourself, Walter and Artax, even if David managed to publish these financials on BU, all you will get is shiite talk about shiite politicians….and schoolgirl type tiffs….
…so Bushie don’t even bother with that anymore… we are grass anyway ….
@ David
“BushTea….You punching hard.”
~~~~~~~~~~
Not hard Enuff.
Can you see where we are headed…?
One way to solve this problem is for the actuary to design a Cash Balance (CB) plan, which looks and behaves like a DC plan, but which really is a DB plan.
±++++++!+++++++
Interesting idea. But switching to notional db is still leaves the problem of where to invest the surplus in the face of shallow domestic markets and restrictions on overseas investing.
There is a spread in the today’s Nation singing the praises of the NIS.
NTSH
@David
Can you post it here pls?
Grazie.
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Source: Nation
Some other fluff/PR stuff not posted.
How do you mean NTSH?
This is EXACTLY what NO was talking about….
Lotta shiite about everything else ….but a FINANCIAL REPORT on the performance (or otherwise) of the money invested in the NIS.
all about Barrow
all from Mia
all from the minister
..the old director who ruined it and got promoted
..the new director who failed at being NISE
..all the longtime staff
all the great benefits that people complain about not getting
BUT….
NOTHING on the financial reports that are REQUIRED by LAW.
What a place…..!!!
Tongue-in-cheek Bush Tea. It eluded you?
No
Just wanted to make sure it did not elude Enuff… 🙂
Former Minister Sinckler who was recently recommended for a cushy job by MOTTLEY at an international organization made the statement once that NIS management reports paint a healthy picture of the fund so what it the fuss?
Walter,
I knew it to be so but you helped me to remember it and put it in the context of the pension reform talk. When one looks at it, her words simply do not compute.
Our prime minister ‘s specialty is words not figures and financial matters. I wonder if she is properly connected here.
Continue to enlighten according to your expertise! Something will stick with someone, somewhere, sometime.
Who needs financials???? We dun know that the raid on the NIS got it catspraddled long time!
Unless we gun lock up somebody, what’s the use of financials and reports?
But seriously, we should have them so that Walter, Artax etc can analyse even if some cannot contribute.
I do miss Jeff Cumberbatch and his Sunday sessions. I also miss Caswell Franklyn’s knowlegeable interventions. I hope he does not let the failure of the nurses’ strike out send him into hiding.
Now, if he had been running up here instead of the poppets they sent, he would have received my vote.
P.S. I see the Justice League has arrived one by one as scheduled. But we had our warnings long before the stale news was posted.
Long time Bajans knew of the shenanigans!
Last word on that. No SCHOOLBOY styled fights today!
“Who needs financials???? We dun know that the raid on the NIS got it catspraddled long time!
Unless we gun lock up somebody, what’s the use of financials and reports?”
I couldn’t have said it better. This IS the prevailing attitude and those in charge know it.
Xxxxxxx
And @Donna let’s also appreciate in your prior intervention that public salaries and public Govt pensions come out of the same pot. Hence, reducing pensions, reducing public employees or reducing salaries all have the same effect on the Consolidated Fund, the difference is WHO takes the hit.
Xxxxxxx
@BT…your brassbowl conclusion is likely not far off. When the Caves financials were published, barely a peep.
Now if only Messers Jordan and/or Haynes could lay out the specifics of that “diversified portfolio of investments”. We know that 5% is Series J Bonds.
The irony. The NIS begging self employed persons and other local employers to “contribute”, while the GoB itself withheld somewhere in the region of $500M.
If I was under 45, I wouldn’t contribute a cent, for the chances of getting a return is slim. They choose to withhold financials, then do likewise and withhold contributions.
@ NO
The other point of view from government is that if you have a jackass, you may as well ride it…. especially with current gas prices.
Or… in Bushies lexicon, if you have a brass bowl, where else will you piss…? 🙂
“even if some cannot contribute.”
Hey, you called my name. Now I have to make an effort to say something
A next ass backward move, we get the eulogy before pronouncing it dead.
@Walter Blackman et al
No NIS/Government pension formula can work that will not be disadvantageous to future pensioners and new entrants to the scheme unless the pension fund is recapitalized periodically by government or from other underutilized NIS funds that have a surplus.
The NIS Pension fundamental structural flaw
NIS pensions has a structural flaw which effectively makes it a ponzi scheme sooner or later because it is expected to cover every single worker and pay them a pension benefit at retirement age. As it stands now, unless they can keep increasing the number of workers contributing to the scheme or their contribution amounts to offset the increasing number of people drawing pensions, the fund has no other option than to dwindle overtime whenever the population is on the decline as it currently is.
The Government Pension Fundamental Flaw
It appears the money for government workers that was supposed to be segregated from the Consolidated Fund into a special pension fund and invested was never done. Government Pensions being paid out of the consolidated fund used for everything else could have continued in perpetuity unless government ran into dwindling revenues resulting in cash flow problems compromising the consolidated fund which in turn compromises all payments including pensions tied to that fund.
The Viable Options
1) This is a two part soluton:
a) Replace the non-contributory pension with a retiree living allowance funded by one or more taxes and paid to all bajans/residents residing in Barbados as an adult for a minimum number of years e.g. 40 years when they reach retirement age and are no longer paid salary in excess of a minimum amount each year.
b) Replace current NIS Pension fund with optional Defined Benefit(DB), Defined Contribution(DC) or Cash Balance(CB) plans managed by NIS which workers can choose to invest in. Alternatively, they can select private pension plans as well.
2) Significantly increase the number of contributions required to qualify for full pension to the equivalent of at least 40 years and either require all companies to pay a percentage of profits towards the NIS pension fund or divert a percentage of company taxes already paid to the NIS pension fund.
@ Donna
“Our prime minister ‘s specialty is words not figures and financial matters. I wonder if she is properly connected here.”
Interesting , we once said Sinckler former Minister of Finance had a problem with decimal points etc. He probably was not “ properly connected” either.
I am now left to find out what his “ speciality “ was.
However, we now know what Our Prime Ministers speciality is words.
Very interesting…………
Now, if we can find out what Dr. Yearwood’s speciality is, that would be very interesting.
Oh well.
Peace
This has nothing to do with financial competence, it is the fog of politics. We tend to easily get distracted with the politicking.
“The irony. The NIS begging self employed persons and other local employers to “contribute”, while the GoB itself withheld somewhere in the region of $500M.
If I was under 45, I wouldn’t contribute a cent, for the chances of getting a return is slim. They choose to withhold financials, then do likewise and withhold contributions.”
not a dime, they will TIEF IT ANYWAY and share amongst their minority friends…
create your own destiny and ways of saving for the future…let the thieves go to hell where they belong..
remember the Apes Hill Club House pool…..built with alleged stolen NIS FUNDS that were never repaid, since then the new owners TORE IT UP and never replaced the pool….pensioners money gone down the drain..
what about that BIG MANSION in St. James built with NIS funds…can the pensioners go there, do they even know it exists…
TheO,
He (or she) who knows not and knows that he (or she) knows not has hope of one day knowing.
But yuh still cyan know evuhting! No shame in dat!
And plenty of fun to be had laughing at your own ignorance!
Comic relief is not called RELIEF for nothing.
We have all the ingredients to do a fundamental diagnosis of the Pension Schemes problems. What strategies are we going to use to correct ,temporarily, the existing symptoms? Are we going to revisit this issue every two weeks.? Yes, the solutions are temporary since we live in a very dynamic environs, Audited Financials tell little about the sustainability of pension schemes. Financials are photographs at a particular point in time ,often no earlier than 4 months ago. . The actuarial reports are more crucial. So we can continue to go around and around the mulberry bush.
@Vincent
Unbelievable.
Additional
“ad infinitum” and ”ad nauseam.” Lol !!
“The fund has 4 billion in assets as of March 2022” LOL
listen what wunna pay for an asset is not the value of an asset. That is rule 1 any first year accountant would tell you.
Secondly the valuation of an asset is based on market value, so what is the market value of these assets as of March 2022 based on an independent valuation?
If wunna ain’t got the answer stop talking dodo
Further more,we cannot whimsically add on financial burdens onto a scheme and expect it not to collapse. It was not designed for that purpose. Every action has a reaction. This is as true in the physical sciences as in the social sciences. A word to the wise.
NO,
How about consultants taking the hit?! How many workers could that pay?
David,
Perhaps I am a little slow this morning but I do not understand your comment.
If she made the statement that Walter thinks he heard, then she either does not understand or she is deliberately confusing the issue.
Either way, it is concerning and does not bode well for the pension reform process.
William,
Not sure what you are getting at. I was having a little fun.
@Donna
What is hard to understand Mia is a politician first and foremost? She admitted publicly the NIS is a hard problem to solve.
Worth repeating for those who reside in La La Land…..and believe everyone else should as well…and that is DESPITE ALL THOSE INVESTIGATIONS…..over which they have NO CONTROL…
‘We are about or are witnessing the ruthless economic dismemberment of the middle class. This in effect means there is little or no hope for the lower economic class .
Wastage, widespread corruption ,poor economic planning and governance have brought us to this dangerous point.”
John A
The Fund you are harping about for years is a Reserve Fund. Pensions are not usually paid out of it. It serves the function of a savings account at the Household level. It is the inflows of contributions that finances the pensions of beneficiaries.
TheO and I are waiting for the input of those who know. Nothing like a little knowledge transfer on a Sunday morning.
Nothing wrong with those who know stepping to the fore.
William…they won’t want to hear this but ..there has only ever been ONE MAN who came on this earth who would have freed the Afrikan population in Barbados from the crimes of the parliament and minority crimunity….that was Charles Duncan O’Neal, and there is NOTHING THEY CAN DO TO CHANGE THAT TRUTH…
everyone else, since the 1930s – 2022 who crawled into the house of assembly/cabinet AS PRETENDERS and GROOMED anti-Afrikan self-hating IMPERIALISTS….has been a FRAUD, THIEF, SELLOUT, TRAITOR…
and there is massive evidence to prove it….
The EXCEPTIONS however:
Dr. Don Blackman….and a very few others…whom they demonized…
So is that the latest justification:….
“well ya know, dem is politicians ya know, and dah is wah dem does do and sey” …….
not dissimiliar to….”well ya know, dem gotta geh a likkle sumting fuh demselves too”….when they TIEF BILLIONS OF DOLLARS….
hello….they should all be IN PRISON……..for a laundry list of CRIMES….including HUMAN RIGHTS ABUSES…stretching backward to the 1930s…how bout dat…
@ Vincent
While the pension fund part may be paid by the inflow of levies etc the total strength of the fund must be dealt with. Plus what happens when there is a short fall of levy income?
I see it as let’s say a department store has a credit card dept that functions based on charges and payments, the overall company must be viable to sustain a future. You can’t look at any part of the fund in isolation and speak of its viability.
@ John A
The Reserve fund increases when pension contributions exceed pension payments and are invested for use in periods when pension contributions fall short of pension payouts. It is not the main source for payments of NIS pensions. It is an exercise in cash flows.. It is this reserve that is invested in assets of various levels of risks including GoB papers and real estate.
@ David Bu
It is indeed unbelievable. I hope those tasked with the job of reform understand what they are reforming.
David,
Didn’t she say also say, “We got this”?
She knew it would be hard. Granted it got even harder but did she not run for office AGAIN since it got harder?
If you have no answers why offer yourself for office?
So you say whatever, even if it makes no sense to justify painful plans, forgetting that there are Walters around with a microphone?
I get you now.
William,
Nice article in Sunday Sun about a Bajan – Canadian entrepreneur, doing very, very well and with a goal of food security for Barbados and the Caribbean. Ryan Massiah is his name.
@Donna
When you say she and others run for office what is the point you are trying to make?
Here on BU, we have read all of the nice-sounding sentences made by the “top voices” responsible for NIS.
I am going to raise what I think are critical issues affecting our NIS, in the form of questions. Judge for yourself if these issues are critical, and if they are, whether or not the top voices have paid any attention to them.
Our last NIS actuarial valuation was carried out as at December 31, 2017. That’s almost 5 years ago.
At December 31, 2017, the NIS Fund amounted to $5.3 billion. Out of this $5.3 billion, $3.92 billion in cash (74%) had been spent by successive Ministers of Finance. The fund has been now left crippled by, and saddled with risky government paper.
The funds collected from workers’ contributions since 1967 were to be invested prudently to help pay the pensions of the Barbadian Baby Boomers who started to retire a few years ago, and who are expected to live long in retirement.
Please note that the PM recently and unilaterally wrote off $1.35 billion in debt that the government owed to the NIS system.
How does government intend to pay back this $3.92 billion which the successive Ministers of Finance, in some instances, squandered?
Hint: Please do not say by taxation. Barbadians are already overtaxed. There is little or no room left for increased taxation. Yet the money must be repaid. The quicker, the better.
@ Vincent
We know that for the last 2 years at least the pension fund has been operating in a negative cash flow situation. This has been confirmed by government and our PM has publically stated the matter needs to be addressed with urgency.
As for how long the pension fund has operated in a negative cashflow situation none of us know. We therefore according to Freundel don’t know how long the pension fund has been sucking on the nipples of the NIS General fund for. We also don’t know the total amount the pension fund is in deficit to the general fund for either.
I can’t therefore be part of the “don’t worry all is well” band wagon.
@ Walter
There is little I can add to your numbers in terms of stating clearly the dire state the fund is in. I cant believe when we all try to stress the seriousness of the matter, how many try to make excuses and deflect from our reality.
@ Donna
I read the article earlier. Very interesting.
Thanks for the look out . Highly appreciated.
At December 31, 2017, the NIS was owed $807 million:
$572 million in contributions receivable. How can a well-managed department sit back and allow employers to build up such a large liability? If the Barbados Government owes the NIS any arrears of NIS contributions, it should hold down its head in shame,
$235 million in accounts receivable: Some of these accounts receivable must have been built up by severance payments which the NIS was forced (in some cases by government) to pay workers, and which employers should have paid in the first place.
Do you believe that those employers who owe the NIS severance payments and contributions are lining up in great numbers to make these payments to the scheme?
Walter you are doing a good job to confirm what some of us are fearful. The challenge is where is the path out of it.
On its current trajectory, the NIS of Barbados is projected to survive another 30 years by using up contributions from active workers and liquidating investments.
If the NIS of Barbados ever collapses, the system will be dead. The Government of Barbados will not have the cash, nor the trust of Barbadians, to resuscitate the scheme.
What confidence or encouragement does this possibility offer to our young Barbadian workers who are fearful that they might be contributing to a scheme from which they may derive no benefits?
Hint: Some persons have already started to denounce our NIS as a Ponzi scheme in the making. How do we go about convincing these persons that that is not the case?
@Walter
Go read my contribution comment at June 26, 2022 9:27 AM. That is two solutions there.
@Walter Blackman June 26, 2022 1:56 PM
A ponzi scheme is where you don’t have enough payments from the new investors coming in to cover future liabilities. There are only three ways to save the fund outside of declaring the pension fund bankrupt and starting fresh.
1) Find a way to disqualify new investors from receiving future payments
2) Find enough new investors to cover the baby boomers
3) Kill off the baby boomers faster to reduce the payments
I was thinking the same thing. This Ponzi scheme talk will surely guarantee its collapse.
But, our governments have always allowed employers to get away with murder. It certainly will collapse if this continues. It is obvious to those who went to school at the standpipe that we must collect on these receivables. We must get serious with employers who deduct contributions and do not pay them in. That calls for somebody’s head on a platter. We must collect on employers’ contributions. These can also be considered almost like a part of an employee’s “emoluments”. They are not optional and should not be late.
The way forward to ensure its survival beyond 30 years is beyond my capacity to solve.
But one thing we must do to stop it from collapsing before the 30 years is to prevent these raids on the fund that enter into the dubious schemes of the last decade and more.
We all know this. But we don’t know how we can manage it. I see the suggestion that the NIS should be allowed to accept or reject the investment requests of government.
Takes somebody who is not hand-in-glove with them to do that. Takes somebody independent to do that.
Oh dear me!
Ding dong bell!
Pussy’s in a well!
@Donna
This government set a high precedent with the VAT forgiveness? What does it do with appeasing citizen satisfaction regarding aggressive collection of receivables?
@Donna
I willing to bet the government probably owe the most to NIS.
I also willing to bet much of it is not collectible either since most of it is probably owed by bankrupt or closed down businesses.
Critical Analyzer
June 26, 2022 2:18 PM
@Walter Blackman
A ponzi scheme is where you don’t have enough payments from the new investors coming in to cover future liabilities. There are only three ways to save the fund outside of declaring the pension fund bankrupt and starting fresh.
1) Find a way to disqualify new investors from receiving future payments (You cannot disqualify contributors from receiving benefits. You can take their contributions and make them eligible for benefits, but if no funds are available to pay their benefits when due, they will get nothing. So we are back to square one.)
2) Find enough new investors to cover the baby boomers (You can get contributors to contribute and pay the benefits of Baby Boomers. Who then will pay the promised benefits of these contributors when they reach retirement? Back to square one.)
3) Kill off the baby boomers faster to reduce the payments (COVID -19 helped a little with this exercise. It did not create a serious enough dent in benefit payments, though)
Critical Analyzer,
Please see my short answers above to your suggestions.
@Critical
I agree with you and that was my point to Vincent. If you think the pension fund will be able to meet its commitments without sucking on the nippples of the reserve fund till it dry you living in la la land. You think the pension fund could find $1 billion to balance it books without hitting up the reserve fund for it? The same reserve fund that the boss right off billions in payments to.
Wunna open you eyes and see do dat!
Donna
June 26, 2022 2:49 PM
” I see the suggestion that the NIS should be allowed to accept or reject the investment requests of government.”
Donna,
I don’t believe the Minister of Finance is willing to give up that power. Too much money at his/her disposal to manage or mismanage as he/she sees fit.
“If the Barbados Government owes the NIS any arrears of NIS contributions, it should hold down its head in shame”
When the ‘Debt Settlement Arrears Bill’ a.k.a Series J Bonds was debated in the Senate, Senator Walcott said that $250M was for unremitted contributions to the NIS, and I also believe he said this was 50% of the original amount owing.
$350M was for lands acquired by GoB but not paid. Leaving $1.3B in JBonds to the holders of other A/R from the GoB. So there was no question NIS deductions were collected, but not remitted.
That $1.3B is a stunning amount in aged payables.
@Walter Blackman June 26, 2022 3:05 PM
They can disqualify many current contributors and not pay them full future benefits by fiddling with the number or contributions required to receive full pension. I think it is currently 500 contributions which amounts to approx 10 years worth of contributions but if they increase that to 1500 or even 2000 which is 30 and 40 years worth respectively, May will contribute but not fully benefit unless they were contributing most of their working life or doing dump-ins if they were working abroad.
Using that would be able to take many from many workers temporarily working on contract in Barbados without them being able to draw down more than a few coppers from the fund unless they worked for that length of time or dumped their 401Ks into the NIS pension fund to reach the minimum required total contributions to received an NIS pension.
@Walter
My true permanent solution as detailed in my comment at (https://barbadosunderground.net/2022/06/24/proposed-public-pension-formula-makes-bad-situation-worse/comment-page-1/#comment-2001870)
is to either
1) Eliminate the NIS contributory pension, pay everyone a non-contributory pension covered by a specific tax(es) and let them invest in their own pension plan whether NIS or private pension plan or other investment vehicles to receive extra pension.
OR
2) Re-balance the pension fund with a new corporate tax or divert a portion of current corporate tax revenue.
Steupsss
The usual story… We all sat down quietly while that idiot from St Lucy called Kellman was up and down shouting about the wisdom of government ‘investing NIS funds’ for ‘the people’s benefit’.
Anytime you allow a moron to make decisions about your assets you should ALSO prepare your donkey for the consequences.
These Duopoly jokers went from one SOLID ASSET to another turning it into junk…
Sold Bartel
sold BNB
Sold BS&T
Sold Banks
Sold BL&P
They sold EVERY SHIITE… and have nothing of substance to show…
Who can now be surprised that they have sold our retirement security? ….NOT STINKING BUSHIE….
NOR is Bushie in ANY doubt that Mia and Co Ltd is currently negotiating the sale of our collective burros to either Chinese, EU or some other money lenders, to be whacked for generations to come….like our grandparents were.
The GOOD NEWS however, is that (apart from a very few on BU,) most of the brass bowls are blissfully ignorant of their coming fate -much like sheep on the final ‘field trip’…. to the abattoir.
Crapover should placate them adequately…..
@ Walter
Bushie took your cussing in good spirit …and it was well worth it so far.
You ARE a true national asset…..
BUT watch YOUR donkey… cause if yuh slip back…yuh slide with the bushman.
“NOR is Bushie in ANY doubt that Mia and Co Ltd is currently negotiating the sale of our collective burros to either Chinese, EU or some other money lenders, to be whacked for generations to come….like our grandparents were.”
yep…and the political pimps and fowls are ALL IMPRESSED…
Donna will have to work until she drops. No retirement for her. At least she has got her beloved garden and her son to help her out in her dotage. That’s provided he can find work on the island.
Let’s be honest – the news that both governments have helped themselves to the people’s NIS funds is hardly news worthy in Barbados. It’s what some would call “best practice”.
Bush Tea
June 26, 2022 4:58 PM
“@ Walter
Bushie took your cussing in good spirit …and it was well worth it so far.
You ARE a true national asset…..
BUT watch YOUR donkey… cause if yuh slip back…yuh slide with the bushman.”
Bush Tea,
You know how life goes. I am a mere mortal and will certainly make mistakes. When I do, I expect you to bring down the hammer (or the whacker, your choice), and hit me with your best shot. Your lashes will make me better if I am interested in improving.
As Bajans say, “tongue and teet’ will have words”. You, Miller, Caswell, Hal Austin, some others and I are “tongue and teet'” and we certainly do have words from time to time.
However, when the dust settles, there is a bond of love and appreciation that man, time, the DLP, nor the BLP can ever erase.
Up and on, my friend.
Critical Analyzer
June 26, 2022 2:10 PM
“@Walter
Go read my contribution comment at June 26, 2022 9:27 AM. That is two solutions there.”
Critical Analyzer,
No disrespect intended.
As we speak, the NIS of Barbados is in serious disequilibrium and reform is urgently needed. I know and you know that your recommended solutions can become the launching pad for a serious intellectual discussion, but nothing more.
It is customary for the powers that be to use all or some of the following policy tools:
Increase contributions
Legislate a change in the benefit formula so as to reduce benefits (benefit cut)
Increase the NIS Normal Retirement Age (benefit cut)
It would surprise me if they were to force workers to work for more than 10 years before they qualify for an old-age pension benefit.
David
June 25, 2022 8:07 AM
” We increase the immigrant population to help with increasing new jobs and tax base?”
David,
I have conservatively estimated that we have at least 50,000 Barbadians age 15 – 64 who are currently unemployed. No one seems to care about them.
How would an increased immigrant population provide jobs for themselves and our 50,000 unemployed Barbadians?
By the way, are these black people that the Government of Barbados plans to bring in? Where are they coming from? Africa? Haiti? Can you easily spot tongue-in-cheek questions? LOL.
@Walter
Isn’t the idea floated to attract immigrants with new skills to grow GDP.
David
June 26, 2022 11:36 PM
“@Walter
Isn’t the idea floated to attract immigrants with new skills to grow GDP.”
David,
All I can say is that the idea is being floated with increased frequency. No details are being given.
Instinctively, I believe that we are going to see citizenship by investment whereby wealthy foreigners will pay a high fee to government to become citizens of Barbados. Black Barbadians will be pushed further down the social totem pole and will become members of a frowned upon “lumpen proletariat” in their own country.
@Walter
Hope CBI never comes to Barbados.
Drastic pension cuts are highly welcome to make our island fit for international finance capitalism. Taxes and social transfers must go down, corporate profits must go up.
I am looking at some of the fixes that were suggested and the phrase “The operation went well, but the patient died” comes to mind.
—-x—+
CBI is already available in several of the islands. It rings with it a new set of problems
Bad idea, CBI. Indeed it will bring with it certain challenges, especially if the investors are of a certain hue.
No, no, no! “Not bout heh!” We know how that story goes.
Nuff nuff “white” men in top positions. Nuff nuff black people in low paying positions.
In de new republic?????????
Barbados fuh sale!
Quick fix! Terminal mash up!
Promote and assist black businesses to grow and spread their wings.
It can be done with some effort.
And a change in mindset.
Donna & David,
I hope my instincts are wrong. The government keeps hinting that it plans to bring in people. Yet, we are getting no demographic analysis. No mention of age groups that will be targeted. No major institutional, infrastructural, nor resource adjustments.
One cannot help but sense that the decision will be foisted upon us with no participation or discussion. I do not want CBI. You do not want CBI. Yet, so far, CBI is the most likely approach, given the antics and behaviour of the government.
Do you know if the citizens of other Caribbean islands with CBI wanted it?
David
Donna’s comments about businesses reminded me of Simpson Motors &
Interamericana Trading Corporation (ITC) sale to the British multinational automotive firm, Inchcape International Holdings Ltd., which created an interesting development.
Inchcape have international distribution rights for Toyota & Lexus [Nassco]; Audi, BMW, Ford, Jaguar, Kia Mazda & Mini; [ANSA Motors (Barbados) Ltd.]; Fiat, Hyundai, Infiniti, Nissan [Courtesy Garage]; Honda [Platinum Motors].
Management of those automobile dealerships believe the British firm may use Simpson Motors to introduce the above mentioned vehicles to the local market, thereby giving them direct competition in the process.
However, the FTC approved the sale…… and, in an effort to protect the local dealerships, Inchcape will be REQUIRED to “notify the Commission if it plans to introduce any new brands to its portfolio of offerings that are already represented in Barbados.”
Citizens…… and owners of used vehicles dealerships, are allowed to import various models of used cars, SUVs, vans, trucks and buses
Interestingly, Inchcape ALSO sells used vehicles as well.
The ‘$1M question’ is, how will the FTC go about protecting the used vehicles industry?
How about the plan to introduce electric vehicles?
@Artax
As you know Simpsons although based in Barbados has a regional footprint. Decisions made about this company one suspects will be flavoured by this consideration. Notwithstanding consumer legislation in place.
Artax
You lost me. If the used car market is already a ‘free for all’ (as it is in many places), what is there to protect.
@WB
We’re the people consulted on changing to Republic. Or had been spoken of so often, it was accepted it would happen ‘eventually’.
When the GoB opted to exchange cash from the NIS for Govt Paper were the citizens consulted.
Herein lies the authority of the elected.
I noted in a recent review of immigration stats (Canada), a very large percentage from African nations claiming persecution based upon sexual orientation. And some were very educated. Minimal procreation happening here.
William,
White “saviours” of the capitalist kind only mean to “save” themselves.
This we know. How the hell can we talk about charting a new path of dignity in a new republic with our feet still mired in the muck of the old ways?
This citizenship by investment thing is not charting a new path of dignity unless we are forging links with our ancestral home. It is more prostitution, not of the hotel room kind but of the street kind.
Eighty thousand “white” people of the monied kind would change this country significantly and place the average Bajan permanently under their feet.
I would be fine with the plan if I did not know the average MO of the white capitalist kind.
But we have centuries of evidence to go by.
I would rather eat Bushie’s coconut and breadfruit every day, wear crocus bag, live in a grass hut and travel by donkey cart!
@ Artax
It would not be a job for the FTC it would be left to the manufacturers like Toyota etc to outline the territory for distribution as per the distributorship agreement with each agent.
So in Barbados Nassco is the agent for Toyota. Simpson motors could not go and sell Mercedes in Florida for example as there is an appointed distributor in Florida already. These lines all have appointed distributors by territory for their new car sales. Now when it comes to used that is a different matter.
It will be left to be seen how well the manufacturers choose to protect their local agents.
NorthernObserver
June 27, 2022 10:21 AM
“@WB
We’re the people consulted on changing to Republic. Or had been spoken of so often, it was accepted it would happen ‘eventually’.
When the GoB opted to exchange cash from the NIS for Govt Paper were the citizens consulted.
Herein lies the authority of the elected.”
NorthernObserver,
The answer to your questions is “No”. Then again, your questions were meant to be rhetorical. Point made. Point taken.
David
June 25, 2022 4:15 PM
“@Walter
The NIS Board report to a BOD and to Cabinet?”
David,
As far as I know, the NIS Board reports to the Minister of Labour & Social Security.
There is an NIS investment committee which is tasked with formulating an investment policy and strategy. This committee has no teeth. No power.
The Minister of Finance is the sole person/office endowed with the power to determine how NIS funds are actually invested. Consequently, the various Ministers of Finance are primarily (Not totally. Poor administration also plays its part) responsible for the collapse of our NIS, should any collapse ever occur.
Well if it does collapse I would say 2 MOFs in question should hold most the licks! Lol
Donna,
A person born on January 1, 2003, who will be hired on or after January 1, 2023 and who will retire after 36 years of service will receive the following:
Average salary = $5,000 per month
Government pension (36 years of service) = $0
Now let us look at a person who is working for an average salary of $10,000, and is also hired on January 1, 2023.
For this person:
Government pension (36 years of service) = $3000.00 per month
Clearly, a person working for $10,000 per month would receive a government pension of $3,000 per month after 36 years of service, whilst his co-worker who works for only $5,000 per month will receive no government pension at all.
A pension plan for civil servants in Barbados should never have a formula designed to provide benefits that discriminate in favour of highly paid employees.
John A
June 27, 2022 2:00 PM
“Well if it does collapse I would say 2 MOFs in question should hold most the licks! Lol”
John A,
I find your response quite interesting.
From my standpoint, I would say that 2 MOFs should hold little or no licks – Errol Barrow and Tom Adams!
A person born on January 1, 2003, who will be hired on or after January 1, 2023 and who will retire after 36 years of service will receive the following:
Average salary = $5,000 per month
Government pension (36 years of service) = $0
NIS Pension = $3,000 per month
The NIS pension is to be viewed as a minimum floor of income. It is supposed to be supplemented by an employer pension, and personal savings. This concept is known as the 3-legged stool.
The proposed government pension formula will restrict a civil servant to only an NIS benefit after 36 years of service. This minimum floor of income, as provided by the NIS, is inadequate for retirement income purposes.
@ Walter
Yes we will spare the rod on Errol and Tom. Those early fellows didn’t seem to see it as the states piggy bank like some of the recent ones.
@John A
Not so fast!
What was the % of government paper NIS held under the two gentlemen you are lavishing praise?
“It would not be a job for the FTC it would be left to the manufacturers like Toyota etc to outline the territory for distribution as per the distributorship agreement with each agent.”
John A
Surely, Nassco as the agent for Toyota, for example, would have to be fully aware of the terms and conditions relative to their territorial distribution agreement with the manufacturer.
So, perhaps you may want to explain why did management of new vehicle dealerships expressed their concerns and complained to the FTC……. if what you’ve outlined in your above comment is true?
Why did the FTC respond accordingly?
Why would the FTC intervene in an issue, which you seem to be implying that does not fall within its remit,?
Another consideration is the fact that Toyota, Nissan, Hyundai, Honda, Mazda, Mini etc are also manufactured in the UK.
And, Inchcape has international distribution rights for those vehicles…… while Nassco, Courtesy, Platinum Motors, ANSA Motors etc import their vehicles from Japan.
~~~~~~~~~~
NorthernObserver
Yes, I agree the importation of used vehicles is a “free for all.” But, the small used car outlets have competing fairly amongst each other.
I remember during the 1990s when the used car industry was at its ‘zenith,’ Nassco, as the official distributor of Toyota, decided to enter that market and imported used Toyotas as well, which was met with protest from local used car dealerships, for reasons of unfair competition and subsequent demise of their businesses.
Mr. Blackman
I understand that persons entering the public sector after September 1, 1975, would not be entitled to both government and NIS pensions, which essentially means they would be entitled to NIS pension only.
Recall that a few retired, ‘appointed’ National Assistance Board employees were receiving pensions from NAB and NIS, with government subsequently ceasing the pension from NAB.
Your made the following calculations:
Government pension = $333.33
NIS Pension = $3,000
Total Pensions received = $3,333.33
My question is, if those persons are NOT ENTITLED to BOTH pensions, why did you calculate for a government pension?
It would interesting to see the guidelines you used as a basis for those calculations, for my education.
Artax
But car dealers sell both new and used? They need manufacturer approval to sell new, but can’t anybody sell used?
Wasn’t there a story on BU months back, where someone bought a used car, Kia I think, from a dealer who was accused of misrepresenting the car. Sounded like they sold both new and used, and were aware of the vehicle history.
It ‘sounds’ as though you seek to limit used vehicle sales to those who do not sell new.
In N.A. where a new car can mean a 1yr wait, the dealers used business is keeping them afloat.
@ Artax
With my years of dealing with grey market sales the matter was always dealt with between distributor and manufacturer. Its a matter of territory and whether an “exclusive ” distributor agreement was in place.
Anyhow don’t let’s cross tracks here on the Issue being addressed. Don’t want David cuss me for being off topic. Lol
@ David.
The amount of government paper as a percentage of total portfolio held I bet would be no where near what it is now. Remember we are talking percentage wise not dollar value.
What I can say is that in the Errol and Tom era these men respected the NIS for what it was. In other words the peoples pension money. The assault on the fund that I have seen in the last 15 years or so would never of happened then under those guys. Also this nonsense we see now of no audited financials being supplied for years would never of flown with them either. Barrow often referred to the fund as ” the peoples retirement money.”
We just seemed now to have decided laws are for others. We cuss the ZR men and the motor bike men for not respecting the law, but tell me have our leaders set a good example of adherence over the last 15 years or so?
The goverent piggy bank approach towards the fund seems to of crept in over the last 2 decades or there abouts. But ask yourself this. Did we as a people ever challenge them for doing so?
TLSN,
Your asshead thinks that Donna is still working??????
And spending so much time on BU?
Lol.
My son is currently working for six overseas clients. One youtuber with 4 millions views on each video decided on Barbados rather than Jamaica for his holiday, just because of their link up online.
So you can stop there and talk shite about my eighteen year old son who has been making money in this field since the age of thirteen and got his first overseas client at sixteen.
Ever heard of Kendrick Lamar? Well there is this Bajan girl who was recently featured on one of his releases. Had hits with her former band Cover Drive up your side. Amanda Reifer is her name. When I showed the news item and her picture to my son, he said, “Oh, her? Somebody asked me to help them with something for her a few years ago. I didn’t have to do a whole lot though.”
So sorry to disappoint you but my son got my creativity and his father’s technical skills.
What a piece of work you are!
Artax,
There is a good reason for Walter doing that which I cannot articulate at present because I am sleepy. I’ll leave it for him to do so.
Walter BlackmanJune 27, 2022 1:48 PM
You have stated this before. And where the organizational lines get hazy.
I “believe” the Board of Directors report to the MoL&SS. The NIS employees are a unit of the Civil Service, to whom does the MD/CEO report? The Board or the MoL&SS, or ______?
The Investment Committee is referenced in the Actuarial Review, but not identified, so one is unsure if this is a sub-group of the BoD or some other appointees. In any case, the Audit has noted, their recommendations have not been followed.
The Ministry of F has one board seat, as well as one seat for the DoF.
Interestingly all Actuarial Reviews prior to the last one, were sent to the Board Chair, who in turn sent the Review to the MoL&SS, or equivalent in prior years. The last review was sent from the Board Chair to the MoF!!!
Was this unintentional?
It is this “dotted line” influence of the Ministry of Finance which causes a cloud.
We rarely hear the MoL&SS talking about the NIS in any depth. Similarity true for Dr. Byer who preceded him.
It seems this organizational structure is intentionally prone to obfuscation?
@ Walter Blackman June 27, 2022 2:35 PM
What about the highly paid senior civil servants, aka PS, Managers, etc. Will they be limited to the same $3,000 NIS pension too and if so have they already started investing in private pension plans and investments as I can’t see them living on $3,000 and no government pension?
Northern ObserverJune 27, 2022 3:41 PM
RE: “Wasn’t there a story on BU months back, where someone bought a used car, Kia I think, from a dealer who was accused of misrepresenting the car. Sounded like they sold both new and used, and were aware of the vehicle history.”
Yes, was a Kia vehicle, which are sold by ANSA Motors, and resold by their used car outlet, Carmax.
RE: “It ‘sounds’ as though you seek to limit used vehicle sales to those who do not sell new.”
Now, “YOU have me lost.”
How could you interpret my mentioning of an issue that occurred in Barbados a few years ago…… to mean I am “seeking to limit used vehicle sales to those who do not sell new.”
Come on, my friend, I EXPECTED a much better response from you.
John A June 27, 2022 3:41 PM
Perhaps you purposely or conveniently ‘side tracked’ my question as to why would FTC intervene in an issue for which it does not have remit.
RE: “Anyhow don’t let’s cross tracks here on the Issue being addressed. Don’t want David cuss me for being off topic. Lol…:
I believe that is a ‘cop out.’
There are some individuals that present different versions of the same irrelevant contribution, irrespective of the topic being discussed, until they eventually ‘hog the show.’
We’re only ‘discussing’ a minor issue that would not distract from the substantive topic in any significant way.
Agree with Artax, it is not a digression to clarify how a regulator should or is not operate in a market to ensure laws are adhered and a single player does not monopolize.