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National Insurance Fund in Critical Condition

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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. 

17th-nis-acturarial-reviewDownload

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.

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236 responses to “National Insurance Fund in Critical Condition”

  1. David Avatar
    David

    @Bush Tea

    This is open to interpretation.

  2. Hants Avatar
    Hants

    @ David,

    To be clear. I am one of those who chose NOT to become a career civil servant.

    Never had the discipline to be a loyal employee and spent most of my working life a ” contract employee ” or self employed contractor.

    My lack of discipline has caused me to have to retire in Canada and not Barbados.

  3. Crusoe Avatar
    Crusoe

    @David,

    Without condoning poor policies and therefore management, which have created this issue, I do think that except for a few countries, the idea of retiring reasonably early is now a luxury for most.

    The existing glabal economic challenges will make the situation worse.

    To solve it properly, one has to look at the economic structure, reliance on heavy consumption and heavy debts.

    Remove the consumption and debts and the issue is softened.

    We need to consider our lifestyles / consumption.

    And reduce the burden of mortgages / rents.

    That last sentence is loaded.

  4. Artax Avatar
    Artax

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

    Crusoe

    Could you please explain what would be the rationale behind increasing the “official pensionable age,”……

    …… if the official retirement age is currently 67 years old, but, a person could retire at age 70?

    However, bearing in mind a person has the option of retiring at 6o years old, perhaps one of the measures that may be considered is taking another look at ‘early retirement.’

  5. Crusoe Avatar
    Crusoe

    Artax,

    Meaning full pension will only be paid at 70, unlike currently.

    And therefore the scale on early retirement would also shift.

    Yes, this also impacts pensionable years…..to be factored in.

    If course, Bushie has alluded that this is all moot, he may be right.

  6. Crusoe Avatar
    Crusoe

    On early retirements,

    Just adjusting the early retirement age should not matter to the fund balance, unless the upper full payout age is also adjusted, no?

  7. Magnificent a.k.a Magno – Yu Heard Formula: C₂₁H₃₀O₂ IUPAC ID: (−)-(6aR,10aR)-6,6,9-trimethyl- 3-pentyl-6a,7,8,10a-tetrahydro- 6H-benzo[c]chromen-1-ol Avatar
    Magnificent a.k.a Magno – Yu Heard Formula: C₂₁H₃₀O₂ IUPAC ID: (−)-(6aR,10aR)-6,6,9-trimethyl- 3-pentyl-6a,7,8,10a-tetrahydro- 6H-benzo[c]chromen-1-ol

    ZAPPOW Irie Land
    Barbados has many problems, one of which is an older workforce that is not being replaced by younger people who are high in the unemployment numbers. 30-0 not once but twice is more a rejection of DLP than an affirmation of BLP. But, stupid sniff sniff comments by one smart ass shows Barbados does not deserve to be an Irie Land like Jamaica, where the weed come from, the weed grow long, the collie burn strong, the land where the spliff them stiff, the collie so strong and people plant it, reap it, eat it, burn it, love it, irie, dread.

  8. TheOGazerts Avatar
    TheOGazerts

    @555, I see it, I love

    Sniff, sniff
    I am the game changer
    A little poke creates a reaction
    For me amusement, for another anger
    But it serves to change a wrong direction
    When I am long gone
    Bthe effect of the poke linger on
    You know life is rich
    I found myself a new bitch
    Sniff, sniiff

  9. 555dubstreet Avatar
    555dubstreet

    Barbados can’t dub
    Yes you are a cunt

  10. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    “…For the CRASS, low-life, Symmonds to cuss them too…?”
    generational….

    Indepence 101….DEPEND ON NOTHING AND NO ONE..

    FOLLOW NOTHING AND NO ONE….only sheep/followers need leaders and shepherds….

    and if in doubt…..LOOK WHERE IT GOT WUNNAH…..

  11. David Avatar
    David

    @Crusoe

    It is a conversation we should have separate and apart from the NIS. It is a key underlying threat to our way of life.

  12. David Avatar
    David

    @Crusoe

    Regarding changing early retirement requirements, there would have to be a reasonable period of grandfathering.

  13. William 2 Avatar
    William 2

    Well, we cannot blame the Queen but we can hold motley Mottley responsible, it’s her watch.

  14. John Avatar
    John

    Found this article interesting!!

    https://barbadostoday.bb/2021/06/08/straughn-govt-hasnt-given-up-on-four-seasons-project/

  15. John Avatar
    John

    Fascinating revelation from 2021!!

    “The $124 million invested in Four Seasons by Government was not written off because Prime Minister Mia Mottley was the lawyer involved in the project.

    This was made clear by Minister in the Ministry of Finance, Ryan Straughn, who has maintained that Mottley had no say in whether that money would be taken off the books.”

  16. William Skinner Avatar
    William Skinner

    Let me make it clear to all. The post that appears (above)August the 12th 2022 12:47 PM was not posted by me William Skinner.
    I hope , that if necessary, the Blogmaster would be able to state that post did not originate with me.
    Thanks
    William Skinner

  17. Artax Avatar
    Artax

    Crusoe August 12, 2022 11:34 AM #: “Meaning full pension will only be paid at 70, unlike currently.”

    @ Crusoe

    “As a result of Pension Reform and the introduction of flexible NIS retirement/pensionable ages, persons MAY RETIRE on a NIS pension AT ANY RANGE from 60 to 70.”

    “Late retirement up to a limit of age 70 would result in increases in pension at a percentage equal to the rate for decrease for persons opting for early retirement. The adjustment rate has been set at 0.5% for each month earlier or later than the NIS pensionable age.”

  18. Sargeant Avatar
    Sargeant

    Based on what I have been seeing here dem suggestion boxes must be overflowing, keep em coming the more the merrier.

  19. 555dubstreet Avatar
    555dubstreet

    “The Final Battle”
    “The Dub Battle”

    Lame Brain Drain Pain
    For those Playing the Blame Game again
    We blame your mother and father for having you

    Ulterior Motives – Roots Radics feat. Brinsley Forde

    Dubterior Motives – King Jammy meets Roots Radics feat. Brinsley Forde

  20. Crusoe Avatar
    Crusoe

    @Artax,

    In my initial comment I said raise the pension age, along with other measures.

    So yes, the sliding scale for early retirements will need adjustment to compensate.

    But that alone will not be enough and the age of full benefit retirement will still need to be increased.

    Add an earlier comment I made re say a 5% cut in retirement benefits and there will be a significant impact.

    Add again, another earlier comment on the potential investments and income streams, that is also relevant.

    No one measure will be enough.

    But this is all vanilla financial management, the numbers need to be worked by the actuaries. Of whom there are many.

    Just surprised that none of these highly paid financial consultants could draft a skeleton plan for the actuaries to work with.

  21. Crusoe Avatar
    Crusoe

    There is also another relevant aspect to the overall scenario that no one has mentioned.

    Very topical. Will see where I hear it first.

  22. Crusoe Avatar
    Crusoe

    @David,

    Separate from the NIS only in so far as to generate a succssful strategy for the fund.

    But the NI is a part of the whole enterprise and in conquering new frontiers, we need to assess holistically.

    On a related point, we may be telling people to work longer, so is now the time to also change working practices, for example, a four day work week instead of five?

    Most trial programs thus far have shown increased productivity. These are with pay remaining the same.

    So we ask people to work longer, but improve conditions.

    This should be even more acceptable to all parties, after the Covid timeouts etc.

    Tech improvements also enable better working processes.

    This IS the conversation that should be held now.

    It also ties into discussions on healthy lifestyles, food production, entrepreneurship etc, where working people will have more time for multiple efforts.

    THIS is where we need to be going.

  23. David Avatar
    David

    @Crusoe

    Agree, it has to be a holistic approach.

  24. William Skinner Avatar
    William Skinner

    @ David
    Thanks.

  25. Donna Avatar
    Donna

    Actually, Don Marshall’s suggested shorter work days. I bet productivity would not drop one bit since few work to day’s end anyhow. Many leave to pick up children from school.

    The time they save, he thinks could be used for entrepreneurship, family activities healthy pursuits etc.

    Who knows, it might even imcrease productivity.

    There is more than one way to skin a cat. We have to study the Bajan context rather rely on overseas studies.

  26. Hants Avatar
    Hants

    Barbados must capitalise on its geographical location and become a greater maritime, air, commerce, trade, travel and cruise hub, says Prime Minister Mia Amor Mottley.

  27. John Avatar
    John

    HantsAugust 12, 2022 5:30 PM

    Barbados must capitalise on its geographical location and become a greater maritime, air, commerce, trade, travel and cruise hub, says Prime Minister Mia Amor Mottley.

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

    Like what it was in the days of sail which allowed us to punch way above our weight …. but those days are gone.

    … sorry, that was the days of slavery!!!

  28. David Avatar
    David

    https://www.instagram.com/reel/ChK0nxSgL2y/

  29. NorthernObserver Avatar
    NorthernObserver

    @John
    And not a single mention by either former Senator McClean nor Min Straughn about THE LAND. Who owns the Land? The Aud Gen said the Land registry showed the land ownership had been transferred but he could find no funds related to that.
    There still has been no explanation on how every RH loan could be defaulted on, and now these (very bad word) politicians are talking about the same project again?
    What a bunch of morons. One or two of them need a bullet to knock some sense into them.

  30. Cuhdear Bajan Avatar
    Cuhdear Bajan

    @David “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?”

    How else could she know until she had the FACTS, the actuarial report?

    By guessing?

  31. Cuhdear Bajan Avatar
    Cuhdear Bajan

    John A @6:46 AM “Truth is none of the medicine to fix the fund will be pleasant.”

    This is not so.

    From my days of baby making I seem to recall that the act of copulation typically engaged in to begin baby making is a great deal of fun, and not at all painful. In fact it is more pleasurable. more fun than anything else in this world.

    I can’t believe that we Bajans have become so lazy that we are unwilling to make our own people, and now looka we will have to import ready made people from abroad, like we import Canadian flour and Turkish sunflower oil. In the good old days we knew how to make babies, cassava flour and coconut oil.

    We do not have an economic, political or financial problem.

    We have a sex problem. Perhaps we have come to prefer imported virtual sex instead of the local warm, messy, old fashioned thing which gained my parents 9 children, and 70 years of companionship. But we don’t need messy human companionship anymore, not when we have our imported “devices”

  32. David Avatar
    David

    The 2017 report indicated the NIF was in a southward trending.

  33. Cuhdear Bajan Avatar
    Cuhdear Bajan

    Tell me wise guys which political party has ever advocated pro-family/pro-natalist policies????

    Which party???

    Tell me.

  34. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    tief not, want not..

    https://www.facebook.com/100658688816800/videos/480824807188980/

  35. Cuhdear Bajan Avatar
    Cuhdear Bajan

    @David August 11, 2022 7:33 AM “The blogmaster is going with what is trending”

    Shouldn’t the blogmaster be going with what is the TRUTH?

  36. David Avatar
    David

    What the PM admitted to be advised in June was indicated in the previous actuarial report and commented by Walter along with several blogs posted. You may have the last word.

  37. Cuhdear Bajan Avatar
    Cuhdear Bajan

    @Donna August 11, 2022 7:37 AM “As for mendicancy? Don’t only look down, look up! They must be following the leaders, ent dat wuh yuh suppose tuh do?”

    It was Pierre Trudeau, I think, who referred to the “up” class as corporate welfare bums. A man ahead of his time maybe?

    Does Barbados have any corporate welfare bums?

  38. Cuhdear Bajan Avatar
    Cuhdear Bajan

    William Skinner August 11, 2022 9:40 AM “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.”

    Maybe he quit. Maybe he was fired. Neither he or the PM is saying.

    But clearly there are some people who do not wish to work with the PM. This has always been the case for every single PM, and will ALWAYS be the case.

    We are born, we pay taxes, we die. Nobody says that we have to love any PM.

    Some of us don’t love our parents/siblings/spouses/children.

    So why do we act surprised when a PM is not beloved by all?

  39. Cuhdear Bajan Avatar
    Cuhdear Bajan

    @David August 11, 2022 8:24 AM “There has been discussion here and elsewhere if too fleeting that the NIS and Central Bank should be ring fenced”

    So David as the old saying goes “who will guard the guards?”

    So will be the guards at the fence to ensure that “thieves do not break in and steal?” Another old saying.

    Looks like dishonestly had long been endemic in human societies.

  40. Cuhdear Bajan Avatar
    Cuhdear Bajan

    William Skinner August 12, 2022 7:48 AM “anybody , who was not interested in party bull shit would have seen this coming at least thirty years ago or before.”

    I worked as an enumerator in the 1990 census, and I certainly saw it coming. I enumerated 500 rural households, and I was surprised at the low fertility rate, but back in 1990 the talk was all about “dem young girls getting tummuch children” and “women getting babies in order to rob or entrap men.”

    Nope.

    None of that was true.

    We could have fixed the NIS then, but Bajans, wunnah overseas ones too, are too disrespectful of the fertility of working class women, NOT UNDERSTANDING that in EVERY country of the world the workforce is reproduced and raised by the working class, and in Barbados’ case by working class women, NOT by the white [and brown and black] male captains of industry. None of you respect that re-PRODUCTION is WORK.

    Now let the captains of industry run their companies without workers, let them sell their products and services to non existent people, let the politicians and economists run their data without people.

  41. Cuhdear Bajan Avatar
    Cuhdear Bajan

    @TheoGazerts August 12 at 9:40 “80,000+80,000 spouses+120,000 children=280,000. In 20 years the black majority will be a minority asking “What the hell did we do?”

    Who says the 80,000 importees have to be white?

    Who says they can’t be African?

    Who says they can’t be the children or grandchildren of overseas Bajans?

    Who says they can[t be St. Lucians, Grenadians, Vincentians, Jamaicans. Because if we are looking to create new Bajan children black people are just as capable of making good children as white people.

    Who says that whether white or African that all or most of them will stay? Who says that Barbados won’t just be a stepping stone to “better” places such as that great immigrant magnet the great US of A?

    However I won’t know the answers to these questions because hopefully I will be dead by then.

  42. John Avatar
    John

    Cuhdear BajanAugust 12, 2022 8:07 PM

    @David “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?”

    How else could she know until she had the FACTS, the actuarial report?

    By guessing?

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

    I heard the same pronouncement when Herbert and Steinbok did their thing years and years ago as Eckler Partners.

    If Ms. Mockley now picking it up she can’t be too sharp.

    “The findings of the 15th actuarial review, made public last month by Minister of Labour Dr Esther Byer-Suckoo, revealed that reserves in the National Insurance Fund (NIF) could be depleted “as early as 2045 under the pessimistic scenario, or as late as 2074 under the optimistic scenario”.

    https://dev.barbadostoday.bb/local-news/nis-blackout/?amp

    Who the hell was Byer Suckoo?

    Anyone remember her?

    …. and she was a Doctor, Ms. Mockley is only a lawyer handling such clients as Four Seasons and who had no influence in the writing off of $124 million and property disappearing into a black hole!!

  43. Crusoe Avatar
    Crusoe

    Donna No doubt the shorter workday will assist in some areas if lifestyle.

    The reason I prefer the four day week, an extra full day is better to work on a project. Set up time etc etc morning and evening for two ventures in a day is obviously longer. It can be done, but also, one less working day will reduce transport fuel etc…for one venture.

    That said, the aim should be productivity, not attendance.

    And no, neither do I believe in employee assessments that tick boxes and skin teet, to monitor productivity, nor keystroke monitoring.

    Any manager with a brain knows who is productive and who is not. All the other crap is politics (run by HR departments).

    I have a problem too, that children can go to school for eight hours every weekday and not pass three CXCs.

    On top of that, they get obese from eating crap and sitting on their posteriors all day.

    Boys especially are not made for that.

    A student can do a lot in five hours, if taught right and is willing to learn.

    Overall for adults and students, a reorganised work week can result in a far better society healthwise, mentally and with a better outlook success wise.

    The psyche thus far is exactly quoted above. Getting a pick and sitting the posterior in perprtuity.

    And the school curriculum ingrains this mentality.
    This needs to change to a productive outlook.

    Not aproductive from a unit if production mindset, but contributing to output in a real way, while enhancing personal development in all manner.

  44. TheOGazerts Avatar
    TheOGazerts

    @cuhdear
    I do not know how you decided I thought the immigrants would all be white.

    They definitely will not be straw men that can be set up and knocked over.

    A next person thought I was attacking Asians.

  45. Artax Avatar
    Artax

    Crusoe August 12, 2022 2:23 PM #: “In my initial comment I said raise the pension age, along with other measures.
    So yes, the sliding scale for early retirements will need adjustment to compensate.
    But that alone will not be enough and the age of full benefit retirement will still need to be increased.”
    ~~~~~~~~~~~

    All ‘fancy words that sound good pun paper.’

    A individual can officially retire at 67 years old, voluntarily retire at any age between 60 and 66 years, 9 months, or opt for late retirement at 70 years old.
    Any increase in the official retirement age would have to be between 67 1/2 and at least 70 years old.

    Therefore, at what age do you believe official retirement should be increased to?

    What would be “the sliding scale for” voluntary retirement?

    Would you also increase the age of late retirement or abolish that option?

    What are the “other measures” you mentioned?

    Let’s assume, for example, the retirement age is increased to 69.
    Would you increase the late retirement age to 72 years old?
    Assuming the terms and conditions of voluntary retirement remains the same, then, a person opting to retire at 60 years old would be somewhat at a disadvantage, especially when one considers the adjustment rate is set at 0.5% for each month earlier.

    Also, pensionable employees contribute 0.60% of their salaries/wages to NIS, which comprises of: Training Levy = 0.50% and Catastrophe Fund = 0.10%.

    Did you consider the reality of health issues associated with aging and a probable increase in claims for sickness benefits?
    After all, everyone is not going to be in good health.

    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.’

  46. Crusoe Avatar
    Crusoe

    @Artax,

    The reality for many is that there will be no reasonable retirement option.

    There is another factor affecting this, that no one has yet mentioned.

  47. Crusoe Avatar
    Crusoe

    Not just fancy words I clearly stated the other measures, which you sre ignoring.

  48. Crusoe Avatar
    Crusoe

    Artax,

    What a person can and cannot do now, as you keep repeating, is irrelevant, as it will change.

  49. African Online Publishing Copyright ⓒ 2022. All Rights Reserved Avatar
    African Online Publishing Copyright ⓒ 2022. All Rights Reserved

    Around and around they go…..deal with the REALITY…..for the last 100 YEARS…parliamentary generational CROOKS and their crimunity CO-CONSPIRATORS have maliciously kept the Afrikan population in GENERATIONAL POVERTY, OPPRESSED, IN BONDAGE and SUPPRESSED….so that the SCUM OF THE EARTH….THEMSELVES INCLUDED, can RoB them generationally…if you don’t ACCEPT THE TRUTH you are going NOWHERE…

    normally you would NEVER get the head of the private sector with their arrogant colluding faces expressing any concern, but the face and skin texture has changed…..as the front for these parasites…new talk, now that they look bad before the world…..they should ALL GO TO PRISON for those MASSIVE THEFTS…that’s what people on and OFF ISLAND are saying…and they ARE RIGHT…after hearing that a government minister gets a lawyer because he did not want to answer questions to the PAC about discrepancies re billions of dollars…..as a SERVANT OF THE PEOPLE….lowlife VOTE BEGGAR..

    “The Barbados Private Sector Association (BPSA) has sent a strong message to Government that it must face and fix the troubling findings in the Auditor General’s report as a matter of urgency.”

    “BPSA Chairman Trisha Tannis did not mince words as she placed on record the group’s deep concern regarding “the glaring deficiencies in financial accounting management, the lack of proper internal controls at many state entities as reported by the Auditor General, and the need for greater accountability on the part of public sector officers who are charged with the management of public funds”.

    “This state of affairs as reported by the Auditor General is, and continues to be, a perennial blot on the good reputation of Barbados as a well-governed state. The need for urgent corrective action cannot be overstated,” she declared.”

  50. 555dubstreet Avatar
    555dubstreet

    Dub Colors · Wackies Rhythm Force
    Dub Marshall

    https://www.youtube.com/watch?v=lYP1dutdxrk

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