National Insurance Fund in Critical Condition


After the dust settled yesterday evening at the Lloyd Erskine Sandiford Sandiford Centre (LESC) Prime Minister Mia Mottley confirmed in flowery language what some in this medium and elsewhere have been alerting the public. The National Insurance Fund (NIF) on its current trajectory will be unable to honour its obligations to persons eligible for benefits from as early as 2034 – that is a short 12 years.

Briefing on the state of the NIS Fund (10 Aug 2022)

Was Prime Minister Mottley quoted in the press correctly that she was alerted to the danger faced by the NIS in June 2022 by actuary Derek Osborne? Surely the Prime Minister does not believe some of us are so gullible? That aside the blogmaster is pleased on the occasion of the availability of the 17th Actuarial Review of the National Insurance Fund, Unemployment Fund and Severance Fund as of December 31, 2020 it has finally been positioned on the front burner. 

A bone of contention has been the inability of the NIF to produced up to date financials. We learned yesterday during the press briefing at LESC the challenge is linked to reporting cash and accrual items and is being addressed by the NIS Board and Auditor General’s office. Again the promise of when current financials will be available is cloaked in non committal language. Although the NIS continues to struggle to produce current audited financials the prime minister’s message is correct, the structural problems afflicting the NIS looms large and must be the priority 1 concern.

The key takeaway from the briefing yesterday is that in a short 12 years the NIF will not be able to pay benefits to those eligible IF reform measures are not taken in the short term. With an ageing AND shrinking population there are limited corrective options available that will not be ‘painful’- add an underperforming economy to the mix and houston, we have a problem. 

Source: NIS

That it has taken so long to get to where we are today is bound up in politics but we are here now. Better late than never some say. Deputy chair of the NIS Board Rawdon Adams appears to have a grasp of the problem and seems earnest in his comments to move the matter along. We wish him and his Board of Directors well. The NIS is our rh life line.

236 comments

  • What structural problem?
    NIS abuse?
    That unfortunately, due to Covid and climate change GoB paper is not worth what was anticipated?
    Don’t worry, be happy.
    An external body will be found who will loan us $250M to ‘re-capitalise’ the various funds of the NIS. It is actually $300M but we had to pay a $50M finder’s fee to White Oak. This is value for money, as we don’t have to pay service fees for 10 years, and then have another 15 before the loan is due. And it is at very low concessionary interest rates.
    The structural problem is the mismanagement. What you going to do? Outsource Parliament. Murdah!

    Like

  • @NO

    You place no credence in reducing contributions, level of benefits and investment yields available outside government paper?

    Like

  • @David
    I’ll leave that to you.
    You can provide the blog with all the precise numbers so all can appreciate the relative merits of the various factors you noted.

    Like

  • Artax at 2:52AM “When one looks at a scenario in which ACTUAL AGES are quoted, then, in MY opinion, it doesn’t make any sense increasing the retirement age, for people to continue working after 67 years old. I can’t image me, at 68 or 69 years old, getting up every morning to go into somebody work place and ‘marching time’ until retirement age…… or ‘drop dead pun de job.’

    I would increase the retirement age for WOMEN, but not for men. Bajan women live an average of 5 years longer than men, so why shouldn’t WE be required to work longer, perhaps 12 to 24 months longer, since on average we collect pensions for many more years that men do. I know that more is already required of women. Years in the paid work force + much more time spent in child care, house keeping and care of elders. But since the life expectancy of women clearly demonstrates that we women have more in us, then I think that more should be demanded of us, and I am sure that we can deliver.

    See problem fixed. Easy so.

    But will anybody have to courage to say this out loud, and furthermore to implement it.

    And yes I am a woman.

    Like

  • @ David
    “Your concerns register BUT the structural problem has to be solved in a short time frame?”
    ~~~~~~~~~~~~~~~~~
    What structural problems solved what Boss!!??
    Who gwine solve them? de same people that can’t even handle drivers licenses, or shiite ID cards? …steupsss!!
    Shiite David, they cannot even get a straight story on the 11 Plus… They seem to be guided by ‘Petra the French feline’…

    Perhaps Mia is correct about the approach of importing people to Barbados…
    Just that we don’t REALLY need 80,000 … Just Thirty …who can be sourced without the damn BRASS …to replace the current lotta sh**** in the Parliament… (show offs)

    In a matter of MONTHS, under SANE leadership, things would turn around DRAMATICALLY….

    Like

  • LOL@ David
    NO is right
    You can see EVERY possible ‘solution’ except the elephant in the room…. or in this case, in the HOA.

    Boss, if you trim expenses, increase income, and even stop the thieving under pressure from the Auditor General … those morons will find some other way to waste the damn money…. like handing the profitable enterprise over to foreigners…

    “A brass bowl and OUR money are soon parted…”

    Unless we can cure the brassbowlery, our donkeys are condemned to the rough grasses….

    Like

  • How does Singapore accommodate 5.5M on 283 sq.m., NYC 8.8M on 300 sq.m. and others?

    Like

  • NorthernObserver

    @enuff
    The island can hold 100,000 more.
    Next

    Like

  • NorthernObserver

    As @JohnA frequently reminds us WE TOO LOVE A DISTRACTION.
    Population is a distraction.
    It is to distract from the issues facing the NIS. So we can say, NIS issues are nobody’s fault, lewee add more contributors.
    These wealthy newcomers will be able to build their own houses, build a newer hospital and schools, several new deal plants, and ensure more electricity is deliverable. They will also be farmers, increasing the local food supply. And since these come from law abiding countries they will be more likely than locals, to contribute to both the tax and social security systems.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    They dont have a scintilla of the intelligence of others have, but love to compare…wuh if dem culd do it wuh we could do it too….without understanding the level of intense focus and skillsets required to pull off these long term projects that REQUIRES DAILY MAINTENANCE…. skills THEY DO NOT POSSESS….Singapore and Manhattan’s populations have been around for decades and decades. These can’t even get the over-talked about Singapore model off the ground that Barrow spoke about in the 1960s…this is 2022..
    And maintenance of even baby incubators is one of their several main weaknesses and presents a real challenge. So imagine i tightly woven population.

    Like

  • How does Singapore accommodate 5.5M on 283 sq.m., NYC 8.8M on 300 sq.m. and others?
    ~~~~~~~~~~~~~~~~~~~~
    Singapore has had intelligent, competent, and disciplined leadership now for 60 years.
    Perhaps we can ask them lend us the 30 we need …eh Enuff?

    Like

  • Also Singapore has people who are not unfamiliar with being disciplined.

    Like

  • @African Online Publishing Copyright ⓒ 2022. All Rights Reserved August 13, 2022 5:22 AM
    “Around and around they go…deal with the REALITY…for the last 100 YEARS”

    So nothing bad happened in Barbados between 1627 and 1922?

    My grandmother born in 1879 told me differently. Plenty of bad stuff happened between 1627 and 1922. Plenty of labour, plenty of MONEY’S worth, plenty of time was stolen from the black majority population in Barbados by people white just like your husband. My grandmother’s thieves resided at Mangrove, St. Peter plantation.

    How come you can NEVER open your mouth to mention this thievery? Are you a beneficiary of the 300 years of stealing? Is that why you have so much time to be on BU? You don’t have to WORK for your living? You living on stolen money?

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    There you go with your dishonesty again Cuddear……and reading everything i post…

    I told you to read the 4 issues of Kush Quarterly…..the 5th issue is even more educational..but wont publish until October..if you can read and obsess about my posts ya can read my magazines like other people do….they are free.

    Have you spoken to those European ancestors in your bloodline yet about your concerns….you said you found them…so why are you addressing me about things i had nothing to do with..When they are the best people to discourse with..
    wuh i speak to mine all the time. Dont need to ask you a thing..

    Don’t know what am living on got to do with you…wuh none of it int yours and you can’t show any proof where it it is..

    My laptop, my internet, my electricity….you got a problem with my websites too….too bad, so sad..

    Like

  • @Bush Tea August 13, 2022 8:50 AM “Ten years ago, we had NUMEROUS up and coming executives in many LOCAL businesses who paid MAXIMUM NIS contributions and who would probably NEVER draw a cent in pensions…”

    Since the maximum NIS pension is currently about $2,500 every 2 weeks, are you trying to fool the blog that there are former Bajan executives who voluntarily forfeit their $32,500 annual NIS pensions?

    Can you please introduce me to these folks. I want to start a “charity” and if I can find 100 of these people and persuade them to turnover the $32,500 annually to me in a few years I would have a few tens of millions and I am sure that I could put the lil money to good “charitable” use.

    Or do you mean that the fellas and their widows are, and their minor all dead before the age of 65/67???

    Like

  • I seem to recall that one of our late captains of industry revealed that drew his NIS pension and “donated” it to one of his grandchildren, not to one of your grandchildren or mine.

    People love money.

    Even or especially people who already have a lot of money still love to have more.

    Like

  • @Northern at 10 something AM “The question is, how the f++k was EVERY loan guaranteed defaulted on? That is the source of the write off.”

    I am old fashioned. I pay my debts. I’ve never defaulted on a debt. So I cant answer “how the f++k was EVERY loan guaranteed defaulted on?”

    Do you thing that any political party would permit me to sit on the NIS board?

    Like

  • The last “friend” of mine who told me “you do not understand” principally because I did not go to HC/QC/Cawmere or study account/finance/numbers or anything so is now bankrupt.

    I still don’t understand.

    Lol!

    Like

  • @NorthernObserver August 13, 2022 10:44 AM “@SS. The ‘breeding’ is happening TO the people, not between them.”

    With a rea-reall biological phuck, there is the possibility that a healthy, intelligent human being will come out of it.

    What is the benefit to the people when they are are financially/politically phucked?

    Like

  • To compare NYC 8 million to Barbados population is silly. Of course a large city in a major country would have a high population density.

    The comparison to Singapore may be a
    fair one.

    Also, Barbados is like a closed container whereas NYC < NY < USA.
    The NYC school budget is several times larger than our national budget.
    “Overall, its budget will be $31 billion, down from $31.6 billion in 2022.”

    The population density in Barbados is 668 per Km2 (1,731 people per mi2).
    “In 2018, the population density of New York State stood at 414.7 residents per square mile of land area.”

    New York has the highest population density of any major city in the United States, with over 27,000 people per square mile.

    Like

  • And let us look at the number of tourists
    In 2019, New York City attracted 66.6 million visitors from across the globe, keeping a tenth-consecutive annual record. Tourists in New York City account for over 25% of all tourists in the entire state of New York

    Not going to compare Broad Street or Offshore street with Wall Street.

    Like

  • Straughn said that as a holder of BOSS bonds he could attest to adding up his interest payments to ensure they were accurate.

    Like

  • @Hants
    Deja-vu all over again.
    All we need now is. for one of the party supporters to pull an Alvin Cummins and endorse Boss+.
    Like the former admin the interest rate story line is identical.
    The next Bond issue is the VAGAbond, finally it will be aptly named.

    Like

  • Oh shirt, I didn’t even read half the posts
    EnuffAugust 13, 2022 9:00 AM

    Go buy some BOSS PLUS and keep quiet do. Brass bowl like you.🤣🤣

    Like

  • @SS
    The benefit is SOME do extremely well….why else would you throw a financial phuck into those whose vote you need? You have to be benefitting bigly.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “Go buy some BOSS PLUS and keep quiet do. Brass bowl like you.🤣🤣”

    ignorant, arrogant, backward and DECEITFUL….trying its best to lead everyone into a CLICO-like TRAP to get ROBBED AGAIN…

    he could not even HIDE IT…..had to be his Judas self for everyone to see.

    Like

  • Northern
    Not me! I ain’t encouraging a fella to buy a ting. If that were true, there’s no way I would have directed my comment to Bushtea. Unless he’s David Thompson.🤣🤣

    Like

  • Salemite
    Did I refer to you? See how I does ignore you and you still duz need to come for me? Then when I drag you, I the worst person in the world.

    Like

  • “To compare NYC 8 million to Barbados population is silly. Of course a large city in a major country would have a high population density.”

    It is only silly when one does not understand what is being compared. High population density is high population density! It simply means the number of people living in a defined area; and the question raised and being discussed relates to CAPACITY. Unless the maths in NYC is different to Buhbaduss’, then your non-point is irrelevant. If yuh doubt me, tell me why in both NYC (a city) and Singapore (an island) high density residential and commercial buildings and mass transit are standard? You go Sir!

    Like

  • @ Enuff
    It IS silly. TheO is right.
    Which is why Bushie ignored your NYC reference initially.

    A City is supported by the surrounding countryside, so that its ‘density’ is a transient number as persons, resources, materials, goods and services can EASILY flow and merge into the larger area.

    This HAS to be different to a closed COUNTRY where everything HAS to be concentrated.
    NYC can routinely access water, power, and vegetables from the wider State, and can also dispose of its waste etc outside of the City.

    Obviously one would not compare the populations density of St James the Parish, with West Terrace the housing area….

    Boss, Save your licks for Bushie …when you have a better chance of success – although still slim…… LOL

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “A City is supported by the surrounding countryside, so that its ‘density’ is a transient number as persons, resources, materials, goods and services can EASILY flow and merge into the larger area.”

    where are the resources in Barbados,…never mind….

    .. ya can’t get a bus on time although they reportedly TRIPLED THE FLEET…..what goods wunnah talkin bout doah……

    “NYC can routinely access water, power, and vegetables from the wider State, and can also dispose of its waste etc outside of the City.

    and where are THE LANDFILLS to deposit the waste of an additional 80K people….even NYC gets challenges in that regard….but they have tons of states to truck them to….

    ..we have not gotten to the sewage yet have we…more shit in the sea…

    “Salemite
    Did I refer to you?”

    did i call your name…who the cap fits……..try dragging me, see what i will do with you;..

    Like

  • “A City is supported by the surrounding countryside, so that its ‘density’ is a transient number as persons, resources, materials, goods and services can EASILY flow and merge into the larger area.”

    Whaaaaat? Sir, the facts are clear that the population of the world’s leading cities continues to rise due to the movement of people internally and from overseas. So that transient number you refer to is forever increasing, yet city boundaries are not expanding. What is happening instead, is that the supporting infrastructure continues to expand to accommodate the increasing demand–taller buildings/innovative land optimisation, technologically-driven self-sufficiency, higher environmental standards, expanded public transportation, the promotion of walking and cycling etc. By the way, though not as easy, islands can also import resources. All now we’re eating imported fruits and vegetables. We also have a sea around us that is larger than our land mass and capable of providing water and electricity that with a larger tax base would become more affordable for the state. My argument remains, B’dos has the capacity to accommodate more people, just like Singapore and major cities, through a similar approach–densification. Whether the examples I provide are big cities or Singapore, how the high population is accommodated remains the same. Your sophistry ain’t wukkin. 🤣

    Like

  • Enuff August 13, 2022 9:00 AM

    Go buy some BOSS PLUS and keep quiet do. Brass bowl like you.🤣🤣

    African Online Publishing Copyright ⓒ 2022. All Rights ReservedAugust 14, 2022 6:59 AM

    “Go buy some BOSS PLUS and keep quiet do. Brass bowl like you.🤣🤣”

    ignorant, arrogant, backward and DECEITFUL….trying its best to lead everyone into a CLICO-like TRAP to get ROBBED AGAIN…

    he could not even HIDE IT…..had to be his Judas self for everyone to see.

    African Online Publishing Copyright ⓒ 2022. All Rights ReservedAugust 14, 2022 7:28 PM

    “A City is supported by the surrounding countryside, so that its ‘density’ is a transient number as persons, resources, materials, goods and services can EASILY flow and merge into the larger area.”

    where are the resources in Barbados,…never mind….

    .. ya can’t get a bus on time although they reportedly TRIPLED THE FLEET…..what goods wunnah talkin bout doah……

    “NYC can routinely access water, power, and vegetables from the wider State, and can also dispose of its waste etc outside of the City.

    and where are THE LANDFILLS to deposit the waste of an additional 80K people….even NYC gets challenges in that regard….but they have tons of states to truck them to….

    ..we have not gotten to the sewage yet have we…more shit in the sea…

    “Salemite
    Did I refer to you?”

    did i call your name…who the cap fits……..try dragging me, see what i will do with you;..

    When you tell too many lies, you start to forget the ones you told. I am tired dragging you. 🤣

    Like

  • Enuff
    If you really cannot see the flaw in comparing population densities between population CENTERS and overall country or county, then yours can be the last word.

    Like

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