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

  • Well none of us could be surprised of what we have learnt. 2 years ago many here warned the fund was in serious trouble only to be called anti party and all doom and gloom etc etc.

    The most concerning figure to me is the January to April 2021 contributions at just over $160M. If you pro rate that for 2021 you are looking at $480 million roughly for the year. That would mean a substantial fall in receipts over the previous years.

    Truth is none of the medicine to fix the fund will be pleasant. You can push the retirement age higher, do away with early retirement, or increase the monthly dues from employer and employee. I suppose the fix will include some of these moves, but the reality is the fund needs a CASH injection from central government. It has been used as a piggy bank by them for years and now the pig needs topping up.

    Like

  • David

    Get use to it. Neoliberalism long meant the end of these systems ……….. everywhere.

    These dated complaints are 40 years toooo late.

    Where were you when these epical battles were been fought. Cultural death is now unavoidable.

    Embrace the brave new world of Huxley!

    Like

  • @Pacha

    The debate as long as humankind exist will be about transitioning from this to that.

    Like

  • Political amnesia mixed with deception is a deadly cocktail.
    Soon clerical officers maybe on contract.
    Next maybe legislation to declare all citizens as self employed.
    All those who marched up and down have been put on contracts without consultation.
    New politics (DLP) or the Covenant of Hope. (BLP)
    Six and half dozen.
    For those who come here shouting about how lazy the youth are and how mendicancy is a national goal,
    please hit your key boards and inform
    about the youth and lazy working class and those who only want to be mendicants, how much they got out of the NIS funds . Let me tell you : not a single penny.
    For those who come here cussing the “ideologues “ please let us know how much they got out of the NIS funds: let me tell you : not a single penny.
    When talking about laziness and mendicancy just try to broaden your minds and you may find mendicancy and laziness in places you did not look.
    Perhaps you don’t know where to look. Maybe you are afraid to look or just too shame to look.
    Peace.

    Like

  • David,

    That is COULD be unable by 2034, not will. That’s what I read. 2034 is the pessimist’s take or the lower limit.

    But we knew it was in trouble even before the pandemic, didn’t we? The raiding of the fund for questionable projects was highlighted repeatedly, wasn’t it?

    Still, this more deaths than births thing needs further information. Who exactly is dying? Is it the pensioners or the workers?

    What is our population expected to look like in the next decade? What is happening with our life expectancy? What were our excess deaths due to covid?

    I see now that they say they are going to consult us and ask us to prescribe our own medicine.

    Oh dear!

    Like

  • @Donna

    The blogmaster is going with what is trending and will not be swayed by the flowery language.

    Like

  • @Donna

    It should be useful to retrieve some of Walter’s comments about the current state of the NIF.

    Like

  • All adults through the generations call all youth lazy, forgeting how they themselves had to be “persuaded” to do their chores.

    If we are honest, hard work does not come naturally to most of us. We have to be “motivated”. Most of us learn over time or pick up the habit later, rather than sooner.

    I don’t cry down the youth.

    As for the general population, some will be lazy and others not. We should not place all in the same category.

    As for mendicancy? Don’t only look down, look up! They must be following the leaders, ent dat wuh yuh suppose tuh do?

    Like

  • All of the pretty talk being leveled and predictions offered are based on a fired up economy. The blogmaster is not as confident as sone that the economy will take off in the near to medium.

    Like

  • Donna we have had this conversation many times here and elsewhere, there is a price Barbados has been paying for growing a large middleclass. We have not made the adjustments in a situations that requires the leadership – public, private and NGO to be dynamic.

    Like

  • The President says there is no crisis, right. Therefore there is no crisis. It is not like politicians ever tell any lies.

    “With an ageing AND shrinking population there are limited corrective options available”

    False!

    This obsession with population ageing is simplistic and misguided. The outsized impact of ageing on the fund is a function of the plan design being PAYG. Population ageing in and of itself is not the main or only cause for the crisis. This is an issue with any PAYG scheme in where support ratios are shrinking over time. Many countries in Europe and elsewhere have crossed this bridge before so there well known counter measures. The Dullard has even written about one or two.

    A switch to a different pension design or bringing other funding mechanisms alongside would help to mitigate the demographic effects on the scheme.

    It’s not rocket science.

    But my guess is that Bushie’s Brass Bowls will over complicate the issue and find a way to make it worse

    Like

  • @Dullard

    You are questioning the assigned actuary to the NIF?

    When the last government and the incumbent floated the idea of a need to increase the population and by extension contributions to the fund what was your position? Also why is the US government and other developed countries been injecting cash to respective social security programs?

    As Pacha opined this is not a Barbados only problem.

    Enlighten us please!

    Like

  • @ David

    I can question any actuary.

    Actuaries come to the Dullard for advice!

    Like

  • @Dullard

    Give us 3 bullet points key next steps for the NIS?

    Like

  • William,

    You are correct. Contracts have been slipped in all over government entities for some years now. Some of them are not even legal, a hybrid between contract of service and contract for services. No national insurance, no unemployment or sickness benefit, no severance if “retrenched”, full control of working hours etc and no payment of the balance of the contract if it is arbitrarily and ABRUPTLY broken by the hirer without justifiable cause.

    I know one person who works at a school who does not even get vacation pay.

    Like

  • @Donna

    Terms and conditions will have to change for everyone. That is what happens in a dynamic environment.

    Like

  • It is proven that many tasks can be performed more efficiently by private sector, we have started to see outsourcing at a higher level than years gone. What we must improve is the governance framework to ensure good integrity of transactions between the parties. That model of a government job for life will fade.

    Like

  • It is a long read but worthwhile considering the 5-6 year discussion on BU about this and the policy direction of the current government. Let those who have ears to hear and common sense to use do so. Flowery language and catch phrases are good politics but rubber always has to hit the road at some point.

    On the eve of the restructuring, the NIS had about B$5 billion (50 percent of GDP) in reserves.
    Of these, central government securities accounted for B$3.6 billion (36 percent of GDP), almost exclusively in long term securities. The rate of return on both its government and noncentral government assets averaged about 7 percent, respectively, before the restructuring. In the debt restructuring, short-term and long-term claims on government were treated differently. The NIS’ (small) holdings of treasury bills were converted into the same 15-year

    instrument that was used to extend the maturity of commercial banks’ holdings of treasury bills, paying 1 percent interest for the first 3 years. Holdings of longer-term government debt were converted into a 25-year bond with a 37.5 percent nominal haircut (about B$1.3 billion), paying 4 percent for the first 3 years, and 8 percent thereafter. This implied an NPV loss for the NIS of 39 percent, using a discount rate of 7 percent (table 2). As a result of the debt restructuring, NIS liquidity decreased, and its reserves are expected to be depleted 10 years earlier than before the restructuring (see text chart). Before the restructuring, asset cashflows were projected to exceed liability cashflows until 2031-32. At this point, the NIS would have sold reserves to pay for current expenditures and reserves were projected to exhaust in 2052-53. After the debt restructuring, asset cash flows are reduced
    between 2019-22. The operating balance is expected to become negative around 2027-28, or about 5 years earlier than had been projected prior to the debt restructuring. Lower investment income and the BRB$1.3 billion upfront haircut (13 percent of GDP, or 26 percent of the NIS’ reserves) result in reserves being expected to be exhausted around 2040-41, 10 years earlier than expected prior to the debt restructuring. Systemic or parametric pension reform is envisaged in the medium term to strengthen the financial position of the NIS.

    Ref: IMF Working Paper, Prepared by Myrvin Anthony, Gregorio Impavido, and Bert van Selm, Feb 2020,

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  • And clearly the birdies were whistling long before yesterday.

    https://barbadostoday.bb/2022/01/07/national-insurance-finances-could-be-gone-in-two-decades/

    Just observing

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  • @Observing

    You must of heard Derek Osborne dismissed the one billion that was burnt by the 2018 debt restructure? He said it was a net wash because the taxpayers were no longer saddled with the repay.

    Like

  • The Nis has been used by both Government as a cash cow to support those in power.
    The millions of $ that the Nis had to write off is criminal.
    You need a Nis board that is free of Gov’t. Interference. Financials will never be reported or accurate.
    The people and companies cannot be taxed no more hence the pension fund will DIE.

    Like

  • @David
    “net wash – for the most part” sounds like a buzz word.

    Osbourne must be a politician.

    Just observing

    Like

  • There has been discussion here and elsewhere if too fleeting that the NIS and Central Bank should be ring fenced to ensure independent decision making.

    Like

  • NET WASH sound real nice but guess what, it also means the cashflow into the NIS of the debt owed will not occur. It also means that the $1 billion dollar injection sadly needed by the fund will never take place. That is what happens when the MOF has the final word on the purse strings of the NIS. In the end all the fancy bonds and NET WASHES mean little when what is needed badly here is COLD HARD CASH.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Chickens are home and roosting.

    Like

  • What seems to be missing is how much the GOB has removed from the Scheme.

    Maybe we should know how much in bonds the GOB has given the Scheme as security.

    Like

  • Waru

    When these fears were being raised nobody cared.

    Within the historical moment when Trotman, a man who’d suffered from Napoleonism, was more interested in political theatre,, becoming the lackey prime minister for corporate interests, than workers’ ownership rights. His successor is no better.

    Now, there’s only one fix.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “When these fears were being raised nobody cared.”

    i remembered vividly how much lip their supporters/fowls had for us when we posted constantly about the trap they set for themselves…

    They made their beds….they can run around trying all the fixes that will never work cause they are so clueless and “appallingly ignorant” …….too well schooled..

    the people now have to make their moves and leave them in the trap they so skillfully created…..

    Like

  • It’s extremely amazing if not pathetic that we have educated people who fall for cliches and sound bites.
    When a country is reduced to nothing but tennis scores and those who try to engage in serious national discourse are scorned, vilified and marginalized , in order to give glee to others , this is what happens.
    We have to laugh. The taxpayers were saddled with paying a man for at least six months, to do a job he was given by the PM. The man quit and not a single word as to why .
    In the mean time the same man is calling for transparency and accountability. Yuh mean to tell muh dat after I pay yuh , yuh en even got to tell me why yuh lef’ de job.
    And the silliness continues.
    Blame the lazy youth , the mendicants and the ideologues fuh dat too.
    I never learnt how to steups.
    Ain’t even sure I know how to spell it.
    Peace

    And the silly games

    Like

  • @Pacha

    You laying blame on Trottie? One must ask why.

    Like

  • David,

    Terms and conditions have to change for everyone?????

    This is how you dismiss unlawful behaviour by government????????

    Hybrid contracts are not a thing under our laws!

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “When a country is reduced to nothing but tennis scores and those who try to engage in serious national discourse are scorned, vilified and marginalized , in order to give glee to others , this is what happens.”

    how can we forget the treatment we received by the schooled…….somehow these days they are more looking like the UNSCHOOLED and UNEDUCATED…

    i see them spellling it stepsssss…don’t know what’s going on there…

    Like

  • @Donna

    Not for all, some jobs will have to change.

    Like

  • Two-moutism in full effect. Lemme sit back and read the pension experts pon BU.☕️

    Like

  • David

    No. He’s just an example of a man who was there, should have known better and failed miserably while using workers to seek a political heaven.

    All uh his ilk should have been beheaded! This lot tooooooo[o[ooooo!

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Don’t have to be any pension expert to understand the definition of FACILITATING TIEFING and SCAMS against the pension fund…that got them in this special place where they are SCRAMBLING re the RUNNING DEFICIT…..in the BILLIONS of dollars…….

    Like

  • @enuff

    Is being NOT an expert the issue?

    Isn’t it the experts that have in the main landed us here?

    Liked by 1 person

  • @David Clarke

    Exactly. Consecutive governments using the fund as an unofficial development bank is a big part ofvthe issue.

    On the investment portfolio, how can a 69% government holdings have made any sense? Little diversification.

    The real problem is that the government finances have been unsustainable for a long time.

    As for the debt write off, it is not rrally relevant because the invedtments were essentially uncollectible.

    On actions to save the fund?

    Move compulsory retirement to 70years.

    Increase contributions by 1% employee and employer each.

    Cut benefits by 5%.

    Do not increase investments in government bonds but in energy and other real earning investments.

    Otherwise, it will not improve.

    Like

  • JohnAugust 11, 2022 8:43 AM

    What seems to be missing is how much the GOB has removed from the Scheme.

    Maybe we should know how much in bonds the GOB has given the Scheme as security.

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

    How much money did the NIS invest in CLICO, Harlequin, Four Seasons, Apes Hill etc etc?

    Like

  • @Crusoe

    The challenge is that returns on government securities give the best yield especially in a low returns investment market of recent years.

    Like

  • Some of the land that John ssys government owns in St.Andrew can be vested in NIS, to repay lost investment money.

    Ensure it is in a trust such that it cannot be sold nor leased for periods longer than five years.

    NIS can lease lots to small farmers for food production, at reasonable rents.

    Government can also vest beach access / beachfront land under similar terms, to NIS. NIS sets up pay parking to ensure a steady income stream.

    Like

  • David,
    .
    Do paper returns mean anything if the cash is unavailable?

    Surely the energy sector and others earn a decent return?

    Why else would Emera fall over themselves to invest?

    Like

  • John,

    Of course. The very reason that the government is duty bound to repay, by vesting land assets capable of earning a steady income stream, into the NIS.

    What about Four Seasons, who owns it? Government?

    Whatever share the Govt owns should pass to NIS.

    Nuh mock sport now. Lewwe see.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Dreaming is really nice Crusoe……but what about the historical corruption, stealing and bribery….you made absolutely no accommodation for that….part and parcel of what the Don told the court….”dah is how we duz do business in Barbados”….

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  • Fuh true ?

    “Barbados’ $4 billion National Insurance Scheme (NIS) is at risk of being depleted in as few as 12 years, ripping the social security safety net from under Barbadian workers.”

    Like

  • This is EXACTLY like the captain of the Titanic calling a meeting just before the last lifeboat cut loose, asking for ideas from those left on board, of what ‘options are available’….
    Lotta shiite!!!

    The NIS was DOOMED when we allowed idiots of the ilk of the ‘Moron from Moontown’ and Stinkliar to dictate its investment policy..
    Then we handed it over to the ‘geniuses’ from Four Seasons and Clearwater…

    If a FOOL and HIS money is so easily parted, what the HELL did wunna think would be the case of a Bunch of FOOLS and OUR money…

    Steupssss
    Fortunately it don’t really matter, cause the broke NIS will be one of the LEAST of our problems quite shortly….

    Like

  • Has anyone realize that the only contributors to NIS are non- government companies & self employed? The GOB do not pay in a cent for their workers, that is why when they are sick they cannot receive benefits. All the money that the GOB has taken from the fund needs to be repaid in cash or gold. Legislation needs to be passed to stop The GOB from accessing funds with immediate effect. The GOB paper that NIS holding needs to be replaced with cash.
    Are any lawyers in de house who can say if the private citizens of Barbados can file a class action law suite againat the GOB for our money that they have not repaid?

    It is like placing your money in safe keeping and someone else borrows and never returns, then you will have to take to court both parties to recover your monies.

    Like

  • Willy does not understand how a 2034 DATE can be proclaimed without up to date audits, hummmmm. Before the SUPREME LEADER makes any declaration’s she needs to get her FACTS correct and UP TO DATE. Without ACCURATE FINANCIALS is “ALL TALK & SPECULATION”. Previous speculation on this blog about governments use of the NIS funds as general revenue, less then reliable investment structure in GOVERNMENT toilet paper etc. etc. makes the outlook extremely poor.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    A real, real expensive wipe. John might be the first person to test out that toilet paper J Series..

    Like

  • Critical Analyzer

    The way to fix the NIS problems is to
    1) Expand the middle class through restructuring the entire tax system by eliminating taxes on product and service inputs like gas, water, solar panels and raw materials and earn those taxes with consumer taxes like VAT. This will allow us to be competitive on the export market expanding the entrepreneurial and Middle income class

    2) Add a nis tax to all consultant/lawyer/doctor invoices which can only be reimbursed if both employee and employer nis contributions are up-to-date for all employees.

    Like

  • Interesting!!

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights ReservedAugust 11, 2022 8:10 PM

    A real, real expensive wipe. John might be the first person to test out that toilet paper J Series..

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

    I’ve hiked in many countries with others from Barbados.

    There are no toilets, far less toilet paper!!

    So I won’t be the first!!

    Like

  • Critical Analyzer

    @Wily CoyoteAugust 11, 2022 7:56 PM

    They can do it fairly accurately because the numbers are huge and they know the current assests paper value and a good estimate of retirees and workforce size year on year from demographic info gleaned from their own contributions and pensions data.

    Unless an audit shows significant fraud and pilfering of funds, a post audit estimate will only change it by a few years up or down at best.

    It is like if a contractor look at your house and land and say it worth 500,000 based on a quick look, a professional valuer will probably say 550,000 or 450,000 when he does a full inspection but it will still be in the range. That is all the actuary did. That is why he said 12 – 19 years in his estimate if I remember correctly

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  • Seems that fear….fear it is ‘nearly broke’ has fired up the blog.
    Nobody talking about cutting benefits?
    Truth be told it is the private sector’s fault. They should have been paying NIS contributions to an “escrow fund” to force action. But some asshole would have been sure to point out how big business was screwing the small man.
    Guess who is in the screw position now? Hint: it isn’t big business.

    Like

  • Vons August 11, 2022 7:25 PM #: “The GOB do not pay in a cent for their workers, that is why when they are sick they cannot receive benefits.”
    ~~~~~~~~~~~~~~~

    Could you please indicate the source of your information?

    Firstly, permanent public sector employees are entitled up to one year paid sick leave from their respective Ministry, department, statutory or quasi government organization……
    …..after which they must have a medical evaluation to determine whether or not they qualify to retire “medically unfit.’

    Secondly, although an employer, whether public or private sector…… may remit NIS schedules without payment of the associated EE and ER contributions, the NIS pays claims for sickness, maternity and unemployment benefits.

    Like

  • WHEREVER MIA GOES MARK MALONEY IS SURE TO FOLLOW

    NO MORE HYATT ON THE 2 X 3 ISLAND ADMID EMPTY PROMISES

    XXXXXXXXXXXXXXXXXXXXXXXXXXXX

    Barbados developer partnering with local businessmen for 186-room Embassy Suites

    Barbados developer, Mark Maloney is partnering with local businessmen for the 186-room Embassy Suites by Hilton which will be constructed on the Liliendaal Railway Embankment, Greater Georgetown.

    The announcement of the modern seven-storey hotel was made on President Irfaan Ali’s Facebook page on Saturday. The hotel will be constructed on 2.5 acres in close proximity to the Arthur Chung Conference Centre and CARICOM Secretariat.

    Chief Investment Officer and CEO of the Guyana Office for Investment, Dr Peter Ramsaroop told this newspaper that the developers are gearing up to turn the sod soon. He added that there have been some delays due to mud being dumped on the lands. He said that the developers have received all necessary permits from the Hilton franchise.

    https://www.stabroeknews.com/2022/08/10/news/guyana/barbados-developer-partnering-with-local-businessmen-for-186-room-embassy-suites/

    Like

  • they know the current assests paper value…..
    Don’t they really need to know real asset value vs paper value?

    Like

  • The prime minister is acting now but do we recall that in 2017 others were making the right sounds but were ignored?

    https://barbadosunderground.net/2017/04/21/nis-reserves-projected-by-imf-to-be-exhausted-in-2037-upp-candidate-craig-harewood-muted-by-vob/

    Like

  • @Frank.

    Oh shirt. You now going cause bassa bassa.

    Like

  • The prime minister and stakeholders were parroting as one that fixing the NIF must be driven by context, it must be nuanced. Then there is the question- don’t we have a cadre of local actuaries capable of leading the technical charge?

    Like

  • Critical AnalyzerAugust 11, 2022 9:50 PM

    Theory is sound in a STATE structure that is not corrupt and makes up the rules as they go along. Four(4) financial defaults in 65 years of independence tells the tale(tail). Government figures lye and the political masters follow suit.

    Any finances by Barbados government will not remotely stand up under a creditable audit.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Shameful, disgraceful,,,the only words to describe these types of fraud…at least the people knew all along they were mismanaging and RIPPING OFF…with the help of their LITTLE IMPS AND PIMPS whom they promote for these social crimes…of helping them divert funds to their crook friends..

    https://barbadostoday.bb/2022/08/12/barbadians-worried-about-state-of-affairs-at-nis/

    “When Barbados TODAY took to the streets to get feedback on Wednesday’s announcement that the scheme could be depleted in as few as 12 years, several persons admitted they were worried, while others blamed reckless spending of the NIS’s funds for the stark reality that the country is facing today.

    Winfield Clarke charged that successive governments have dipped their hands in the NIS to finance projects and written off millions in debt for big businesses, leading to the current concerns over the viability of the fund.

    Clarke said, in his opinion, it is not about drawdowns of pensioners, it is about abusing and mismanaging NIS funds by both Democratic Labour Party (DLP) and Barbados Labour Party (BLP) governments.

    “I am prepared to sue the state if they disadvantage me in any way for money that I have already worked for and which they deducted during my working days,” Clarke said.”

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Lets hope the people have finally transitioned to that place where they STOP LISTENING TO THE LYING FRAUDS that are politicians AND STOP TRUSTING THEM…,,even better stop VOTING IN YOUR OWN DEMISE, YOUR OWN ROBBERIES, YOUR OWN OPPRESSION AND DISENFRANCHISEMENT…

    they will NEVER STOP their criminality against those who propel them to the tainted parliament.

    Like

  • Critical Analyzer

    @Frank

    The only way to know the real value of any asset is to sell it and convert it into cash otherwise you only have paper/book value.

    I think my house is worth more than a million dollars but if I put it on the market at a million I will get laughed at or some enterprising businessman might just come along seeing something I don’t see and offer me 2 mil because he sees an opportunity I missed.

    Like

  • @CA

    There are acceptable guidelines upon which fair market value can be determined.

    Like

  • Critical Analyzer

    @David

    That job of determining fair market and future projected value is why actuaries earn the huge bucks and are in demand the world over.

    Like

  • Now we are being told to invest in our own pension plans. So, the well off will be protecting themselves while the poor will be left to the economic elements.
    Poor people scarcely capable of buying food have to now look at retirement incomes by buying insurance. Where the hell will they get the money from. Perhaps the Kool aid drinkers have the answer.
    The failure to address poverty, wages and the nonsensical political one upmanship have brought us here.
    All the pretty talk and pseudo intellectual posturing cannot ignore the simple fact that anybody , who was not interested in party bull shit would have seen this coming at least thirty years ago or before.
    What’s the latest score ?
    Poor people score zero !

    Like

  • We will soon have 30-0 in BU. The one voice that could have been given to give a completely discordant note (rightly or wrongly)has been silenced

    Like

  • been given = counted on

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  • @Critical
    List the assets, two categories will dominate….what is the current value of GoB paper …..10¢ on the $, 25¢? 50¢?
    The bulk of the NIS ‘assets’ are GoB ‘liabilities’.

    Like

  • William your comments always amaze, you are very blinkered. Barbadians are being encouraged to complement NIS pensions with private and personal saving, this is the ideal scenario, even Walter Blackman agrees this is the best approach. At the briefing on Wednesday it was made clear there will be stakeholder meetings to assit government with deciding the best approach forward for the NIS. No decisions have been taken and the actuary was at pain to point out that the vulnerable will have to be looked at in any revision to the NIS going forward whether it is people being graduated from the NIS, means test etc. Be fair for crissakes.

    Like

  • Good to see Atherley echoing the blogmaster’s views on this matter.

    Atherley wants ‘independent’ NIS
    By Colville Mounsey
    colvillemounsey@nationnews.com
    Former Opposition Leader Bishop Joseph Atherley is calling for an end to the days of governments having “liberal access” to National Insurance Scheme (NIS) funds.
    He is also advocating for a “truly independent” governance structure to manage the NIS, one that is not subject to political interference and pressure.
    “This discussion, while it centres around a problem that we need to immediately resolve, a lot of attention has to be placed on the policies that we are going to put in place to ensure that we do not walk this path again.
    “The NIS is critical to the future of all Barbadians. If we look at the historical practice, there has been too much political interference and subjugation of the National Insurance to political process,” Atherley told the Weekend Nation
    yesterday. His comments came in the wake of Wednesday’s press conference hosted by Prime Minister Mia Amor Mottley, during which it was revealed that the NIS’ 17th Actuarial Review, prepared by Derek Osborne, showed that based on the current trajectory, the stateowned social security net faces a worst-case scenario of running out of funds in 12 years.
    Osborne listed population decline, fewer workers, Government’s debt restructuring and a growing informal sector as some of the reasons for the state of affairs with the state-owned social security.
    He said the NIS was paying out more pension benefits than it was receiving. This was to such an extent that during 2020 and last year, all of the NIS’ investment income “has been needed to help pay benefits”.
    The actuary noted that due to the Government’s 2018 debt restructuring, the NIS lost $1 billion, a factor that would have only fast-tracked the current trajectory by three years.
    However, Atherley said that while he acknowledged all of the above as major contributors, the “fast and loose” approach to the NIS funds by some previous administrations must also be blamed. He maintained that any reforms to the NIS’ structure must include ironclad policies that put the NIS out of the reach of any political agenda.
    “I have repeatedly called for a more independent governance structure around the National Insurance Scheme and around the Central Bank of Barbados. In both instances, under the last administration, we have had these missteps that have resulted in undercapitalisation of the Central Bank and a depletion of National Insurance.
    “I don’t support the actuary’s position that if Government had to pay back on the investment in bonds by the NIS, that taxpayers would have to pull their pockets. The fact is that you can’t say one and not the other, that by having that type of liberal access to National Insurance funds is part of what has contributed to our problem today,” he said.
    “This Government has recently been talking about avenues of investment for National Insurance funds and it is something that I would have raised as an issue. We need to be very clear in our steps as to where we are going to invest National Insurance funds and what are the regimes that are going to govern those steps towards investment. The last administration had a rather ad hoc policy.
    “If you are going to invest NIS funds overseas, it is going to involve foreign exchange. If it is going to be invested domestically, then it has to be clear who benefits because this is the people’s money that you are using.”
    Atherley also took the NIS to task over its failure to produce audited reports for several years, stressing that this was inexcusable and must not continue.
    “How could you have the National Insurance Scheme, which is responsible for the social security of all Barbadians, not file
    proper audited reports for a number of years? It does not matter to me if the blame rests with the systems. At the end of the day the NIS is the people’s fund; they are managing billions of dollars that account for people’s futures.”

    Source: Nation

    Like

  • NorthernObserver

    TheO
    Surely you have seen enuff to play the role 😂😂😂
    Just hours prior @Bushie mentions Sinckler and the response was ‘who (is) Sinckler’?

    Like

  • @CA

    Does the actuary play a role in determining market value for government bonds?

    Like

  • All the World’s a Trap House

    I Walk on Guilded Splinters

    Like

  • With the absence of my fearless leader I am left to carry on the fight.

     

    I will not be engaging in the ‘advance calculus’ that some specialise. I believe it is pointles and akin to verbal masturbation. First, I will copy a few phrase  from articles in BU and will ask you to let me know if it is overcast or a day of sunshine and then I will get to my main point.

    Please note the use of spin, pace, full tosses and the usual “ya think we bad, others are worse off” (as if that is a solution to anything)

     

    Excerpts (BT)

    (1) ‘Barbados’ National Insurance Scheme (NIS) is under severe stress and there are limited options to fix it.’, ‘a worrisome situation in which the NIS was collecting 18.25 per cent in contributions and paying out 24 per cent in benefits and pensions”; “onsider eliminating the option for workers to choose early retirement at age 60, moving that first option up to age 65.”Osborne floated the idea of smaller cost of living adjustments on NIS pensions.”

    (2) “We want to see the full report so we can see the real state of affairs and what options are available for the Government, and there has been no indication as to what those options are and what Government will choose”; ‘reform was too serious to be seen as a “one-off” thing’

     

    (3) situation merited “a call to action”; General secretary of the National Union of Public Workers (NUPW) Richard Green; general secretary of the Barbados Workers’ Union (BWU) Toni Moore and chairman of the BPSA Trisha Tannis, all agree that there is a need for a more stable and sustainable fund”

    (4)Barbados’ National Insurance Scheme (NIS) is not in any crisis.”; “There are countries in the Caribbean that are five, six years away from the moment that we are talking about.”

    A bad idea

    For those who often rush in to rubbish or ridicule let me state that “reductio ad adsurdum” is a tool that is often use to poiint out the weaknesses in an argument.

    Hinted at, but not directly stated is the ‘importation of 80,000 people.  Let me give you simple arithmetic and you can comment on if I am wrong or right.

    These would probabaly be 80,000 sexually active people who will probably have 1.5 children each.

    80,000+80,000 spouses+120,000 children=280,000. In  20 years the black majority will be a minorit asking “What the hell did we do?”

    No land,

    Nojobs

    No water

    Hopefully one of them is smart enough to turn sargassum weed into food.

    Like

  • Typical Typo Thursday treat

    Like

  • NorthernObserver

    @David
    You should ask @WB?
    My guess is if the actuary values GoB Bonds Bonds at any discount they are unlikely to get ‘more work’ 😂

    Like

  • @NO

    Naughty boy.

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Nice to see they can’t blame those OUTRIGHT THEFTS of pensioners money on Covid, nor monkeypox, nor on internal or external economic fall outs or on any of the bigger countries.,,,they have run out of distractions, sleight of hand….AND MASSIVE LIES,,,

    ..it’s THEIRS AND THEY HAVE TO OWN IT…them and their criminal friends

    Like

  • I was listening to BDP when suddenly…
    Believe me or not…
    This is a remix…

    Like

  • I would prefer the friendship of a liar and thief over that of a yes man. The liar and thief you can protect yourself from and will even get a second opinion. The “yes man” will say yes if you are right or wrong.

    I do not need or cannot give that kind of support.
    ⠀⠀⠀⠀⣀⣀⣀⣀⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠻⢾⣿⣟⣿⣟⣻⢷⣄⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⢀⣼⣽⣏⣙⠚⣿⣿⢷⣾⣛⠆⠀⠀⠀⣤⣶⣶⣾⣿⣿⣿⢷⣶⣦⣄⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⣠⡿⣡⡿⠙⠉⠳⠿⠟⠘⣏⣿⠷⣦⡄⠀⠉⠱⣶⣾⣿⣿⡿⣷⣦⣝⡻⣿⣷⣤⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⡿⠁⡿⠁⠀⠀⠀⠀⢀⡀⢿⡍⣳⠛⠀⠀⠀⢰⣿⣽⣶⣿⣇⢰⣿⣿⣿⣷⣯⣟⠿⣷⣦⣄⣀⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⣷⠀⠁⠀⠀⠀⠀⠀⣸⡇⢹⡟⠛⠀⠀⠀⢠⣼⡍⠛⠛⠛⠿⠀⢹⣿⣿⣿⣿⣿⣿⣶⣯⣙⡻⠿⣿⣶⡄⠀⠀⠀⠀⠀⠀⠀⠀
    ⢻⣧⣤⣤⣤⣄⠀⠀⠁⣠⡿⡅⠀⠀⣀⣴⡿⠁⢹⣤⣤⠶⠆⠀⢰⡉⠙⢛⠻⠇⢿⣵⣾⣝⣿⡿⣶⣾⣶⣶⣤⣀⠀⠀⠀⠀⠀
    ⠀⠙⠷⣦⣤⣈⣇⠐⠚⠉⠀⣿⣴⠾⠛⠁⠀⠀⠀⠈⠙⠒⠛⠀⣦⣿⠚⠛⢡⠾⢷⣟⠿⣿⣿⠁⠀⠀⠀⠈⠻⣿⣇⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⠰⣆⠀⠀⠀⠈⠉⠛⣶⠀⠀⠀⠀⠀⢀⣀⣀⣀⣾⠛⠉⠉⠻⣦⣤⣽⣶⡿⠑⡄⠀⠀⠀⠀⠀⢻⣿⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⠀⠻⣧⡀⢠⣀⠀⠀⣿⠀⠀⠀⠀⠀⠘⠛⠛⠻⣿⡷⠀⠀⠀⠘⠀⣀⣀⠀⠀⢳⠀⠀⠀⠀⠀⣼⡿⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⠀⠀⠙⠿⣭⡻⡗⣰⠟⠀⠀⠀⠀⠀⣀⣤⣶⣤⡀⠀⠀⠀⠀⠸⠿⠟⠻⠿⠆⠸⡆⠀⠀⢀⣼⣿⠃⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⠀⣰⠇⠀⠀⠉⠉⠁⠀⠀⠀⠀⠀⠀⢿⣿⣿⠋⠁⠀⢀⡀⠀⠀⣠⣴⣄⢠⣤⡤⣷⢀⣠⣿⡿⠋⣠⠰⣶⣤⡀
    ⠀⠀⠀⠀⠀⠀⠀⣿⠀⠀⣦⣀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠉⠀⠀⠀⣴⣿⠋⠀⢸⣿⣿⠛⠉⣿⡇⢻⠀⣿⠟⠁⣼⢻⣦⡿⢘⣷
    ⠀⠀⠀⠀⠀⠀⠀⣿⠀⢸⣿⡏⠀⠀⠀⣠⣶⣶⡖⠀⠀⠀⠀⠀⠨⣿⡇⠀⠀⠀⠉⠁⠀⠠⠿⠗⢸⡄⣤⣶⣿⠻⠆⣿⠋⢁⣿
    ⠀⠀⠀⠀⠀⠀⠀⣿⡄⠸⣿⡇⠀⠀⠀⠛⠻⢿⣷⣄⠀⠀⠀⠀⠀⠻⠟⠀⠀⠀⠀⡀⠀⠀⠀⠀⢸⡇⠟⠋⠁⣸⣦⣭⣴⡿⠋
    ⠀⠀⠀⠀⠀⠀⠀⠘⣷⠀⢿⣿⡄⠀⠀⠀⠀⠀⠙⢿⣿⣶⣶⣶⣶⣤⣄⣀⣀⣠⣼⣿⣧⠀⠀⠀⣾⠀⡤⠶⠛⠋⠉⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⢀⣤⡹⣧⡀⠀⠀⠀⠀⠀⠀⠀⠀⠈⠻⣿⣿⣿⣿⣿⣿⡿⠟⠛⠉⠙⠋⠀⠀⣸⡏⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⣴⣟⣵⣧⠙⢷⣄⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠈⠉⠉⠉⠁⠀⠀⣀⣤⣤⣤⣤⣔⠋⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⠀⢸⣟⠺⠋⢀⣠⡶⠙⢷⣤⡀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⢠⡴⠟⠉⠻⠛⠻⠏⠻⣧⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⠀⢈⣿⣄⠀⠈⢹⣿⣆⠀⠉⠛⠷⣦⣤⣀⣀⠀⠀⠀⠀⠀⠠⣯⣀⣀⣠⡞⠁⠀⢀⣀⣽⣤⣤⣄⡀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⢰⠟⠉⠙⠃⠀⠈⣰⡟⠀⠀⠀⠀⠀⠈⠉⠉⠛⠛⠛⠒⠀⠀⠈⠉⠉⣿⠁⠀⠐⠋⠁⢶⡶⢶⠙⣿⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⢸⣆⠀⠀⠠⠴⠞⠋⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⣿⡦⠀⠀⠀⠀⠀⠀⠀⣼⡟⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⠀⠉⠁⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⢻⣧⡀⠀⠀⠀⠀⢠⠾⠋⠀⠀⠀⠀⠀⠀⠀⠀
    ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠈⠉⠉⠉⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

    Like

  • This is a remix of the remix
    Dead Homiez

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    It’s the yes men and women COLLECTING FREE SALARIES for being bobblehead dolls..,,,greedy, unethical and IMMORAL..are the biggest contributors to what is happening…..and they cannot reverse any of it..

    Like

  • African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    If any of them had a drop of INTEGRITY or CREDIBILITY, like can be found in others like Caswell…the island could never be SINKING THIS RAPIDLY….or took over 50 YEARS for the ENTIRE population who are not pimps and cult fowls TO SEE where it’s now leading..

    William…remember how they and their fowls treated Caswell…all he had to do was wait them out..

    Like

  • TheO
    #4 is only used IF your party is in power.

    #3 needs banning, as Ms Moore is one of the longest serving Board Directors of the NIS and cannot make comments.

    #2 Maybe. The ‘dream’ any report will be half-full versus full, makes this option full of the fairy tale options required.

    #1 You tried to turn a long hop into a Yorker.? “smaller cost of living adjustments” however needs work. It means reduced benefits. Something like a ‘recalibration of benefit payments to ensure Barbadians maintain their standard of living’ is preferred. The latter is 🌺🌺 but says not one shiite.

    Liked by 1 person

  • @ WARU
    “William…remember how they and their fowls treated Caswell…all he had to do was wait them out..”

    Like I said , the jokers can tell us how poor people who can’t feed their children during the summer, will find money to invest in pension and retirement plans.
    When they answer that, I would get back to them. They will not trick me into any back and forth and their peculiar form of “balance.”
    Peace

    Like

  • “80,000+80,000 spouses+120,000 children=280,000. In 20 years the black majority will be a minorit asking “What the hell did we do?”

    check you numbers and revert back with some facts
    what about race mixing and black on black procreation
    stop being so paranoid like a #throwashadecrew cunt

    Serious

    Like

  • I was debating if to let it pass, but part of the reponse is so silly that I will add a few words
    “black on black procreation” Isn’t this the problem we are trying to solve?

    sniff, sniff
    Suggest using weaker stuff before you engage
    (I get cussed again)

    Like

  • Lord Benwood Dick

    My fellow Barbadians,

    The obvious solutions is the raising of money to boost the NI funds.

    My proposal is to legislate a Wukup Tax, whereby anyone wukking up, jukking or showing any form of sexualisation in any manner, pay $100 per wuk up forthwith.

    This shall be admininstered by a new police arm the Wukup Police.

    The levy will only be lifted each year for the two days of kadooment, Kadooment and Foreday.

    However, on those days, anyone not wukking up will be fined similarly.

    Our (Special Economic Considerations Study) research had shown that this will raise $14.3million dollars annually to augment other measures.

    The economic group also praises the government for the brilliant move of enhancing business facilitation with removal of visa requirements, allowing an influx of youthful ladies coming in for ninety days, which will reduce the number of male pensioners with great effect. Those fellows life expectancy will be reduced in the actuarial analysis to match the level of business activity.

    This should save an additional estimated $12.6 million per annum.

    All told, these measures extend the program an additional eight years.

    Like

  • “Suggest using weaker stuff before you engage”

    you are anal and repetitive like your bitch who got got
    get over it bitch

    Like

  • Any of you bloggers depending on a NIS pension now or in the future ?

    I always believed that joining the civil service was a path to a lifetime job and a liveable pension when you retired.

    Am I wrong ?

    Like

  • Hants,

    I suspect that most Barbadians, except the wealthy few, were expecting to rely on the money from the NIS, even if they have a private plan.

    As for the career civil service, no doubt many are now very worried.

    There is no doubt in my mind that the official pensionable age will increase. Among other measures.

    Of course, that is a double edged sword, as it leaves less vacancies for youngsters to fill.

    A lot of hurt in any case.

    Like

  • Every damn body who can read would have heard Walter Blackman explain the CHAOS of the NIS now FOR YEARS…

    so…
    This whole NIS shiite story is a simple-minded diversion from the REAL story of government’s vile and disrespectful tirade against a number of outstanding citizens who DARED to challenge some of their now-endemic idiocy.

    Sounds like a typical PLOY by Enuff and his gang…

    …and then they have the GALL to invite citizens to ‘offer suggestions’ to fix the NIS……
    …For the CRASS, low-life, Symmonds to cuss them too…?
    STEUPSSS!!!

    Lotta shiite
    Unfortunately, simpleminded brass bowls are EASILY led by the noses to the slaughterhouse…

    Liked by 1 person

  • Gee, that’s good stuff.

    Like

  • @Hants

    It is that perception and attitude attached that is part of the problem.

    Like

  • @Bush Tea

    We know Bajans are a reactive people. The blogmaster recalls very well when Craig Harewood of the UPP tried to discuss this matter with Glynn Murray on the talk show and was shutdown. The blog is posted above that reflects the blogmaster’s irritation at the time. A people deserve what they get, every time.

    Like

  • @ David
    A people deserve what they get, every time.
    ~~~~~~~~~~~~~~~~~~~~~
    100%!!!
    And what we deserve is at hand….

    Like

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