For many years the blogmaster and others have posted voluminously about the importance of the citizenry actively participating in the type of democracy parodied from the former colonial master. While no man made construct is perfect the system of democracy practiced by the Western world is described – some will say by the cynics – as the worst form of government except for all the others that have been tried. 

Several reasons (excuses) have been offered for the increasing cynicism, distrust and apathy being directed by Barbadians at government – with decreasing voter turnout to elect members to parliament and poor turnout at town hall meetings to critique government sponsored initiatives is a good litmus test.

In recent days the Prime Minister of Barbados Mia Mottley has finally had to declare to the public the sorry state of the National Insurance Fund (NIF). For political reasons she indicated that the condition of the NIF was brought to her attention in June of 2022. However, keen followers of local affairs will recall that after winning the 2018 general election she stated publicly the National Insurance Scheme (NIS) was in a mess and the government will have to circle back to it at some point. Also the 2015 NIS Actuarial Review along with Walter Blackman and other social commentators sounded off concerns about the rate NIS pension benefits were outstripping savings going back to the 2015 NIS Actuarial Report

Here is something we know, Prime Minister Mia Mottley CANNOT deny the poor state of financial discipline in the public service evidenced by over a decade old Auditor General reports. Can we reasonably assume she will assemble ALL permanent secretaries and relevant personnel as a matter of urgency to correct the problem? Surely poor financial management in government departments must be made a priority to ensure there is efficient use of scarce taxpayer resources? Then again didn’t the late prime inister David Thompson assemble the top management of state owned entities (SOEs) in 2008 to warn better was expected and how has that progressed 15 years later?

We are here now and Barbadians have been promised the opportunity to participate in stakeholder sessions to help with reimagining a NEW NIS Scheme. The blogmaster anticipates there will be energetic public participation given the threat of reduced NIS benefits and possible changes to eligibility. 

Do Barbadians understand the reason for the current state of play at the NIF – as one example – has a lot to do with the disinterest demonstrated to actively participate in our democracy? The disengagement has created a situation where the tail is wagging the dog and given rise to a marauding political class. Imagine if the same noise currently polluting the public space about the NIS was able to be sustained on the many other serious issues always confronting the country. 

The importance of a robust governance framework cannot be underscored as it relates to ensuring an efficient implementation and management of policies, accountabilities and performance to name a few components. If Barbadians are as intelligent as the size of the national allocation to the education budget suggests, there must come a time IQ/EQ is tangibly demonstrated through citizen advocacy even if it has to resort to civil disobedience. History is replete with examples to support meaningful change is only achieved when extreme positions are taken.

86 responses to “Democracy, Apathy and the National Insurance Fund”


  1. Bushie is a messenger not a driver.
    Besides, the brass bowl passengers are happy as shiite.. as long as there was a Kadooment.


  2. Night does run till day catch it!!

    https://barbadostoday.bb/2019/10/28/paradise-on-again/


  3. 2020 come and gone and still no Sam Lords!!

    Where has all the money gone?

    When will we ever learn?

    How many roads we need to go down,


  4. […] following comment was posted to blog Democracy, Apathy and the National Insurance Fund  by a commenter resident overseas – Barbados […]


  5. NIS OWED $56M
    Severance Fund ‘may be challenged’ due to shortfall from employers
    By Shawn Cumberbatch shawncumberbatch@nationnews.com
    Companies which terminated employees but did not pay them severance owe the National Insurance Scheme (NIS) more than $56 million.
    With the NIS facing an estimated additional $26 million in pending severance claims, its actuary believes that the Severance Fund “may be financially challenged soon”, and is recommending a comprehensive review of the legislation governing how it functions.
    The Severance Fund’s challenges are detailed in the 17th Actuarial Review of the National Insurance Fund, Unemployment Fund and Severance Fund as of December 31, 2020, which was prepared by NIS actuary Derek Osborne and colleague Simone Balkissoon of actuarial firm LifeWorks.
    Uncollected
    “The Severance Fund may be financially challenged soon if most employers are unable to pay the amounts due to their former employees, and the large amount due from previous employer payments remains uncollected,” their July 22, 2022 report warned.
    “The fund also faces administrative challenges which ultimately result in lengthy delays in payments to severed workers.”
    The actuaries explained that the Severance Fund, which is administered by the National Insurance Board (NIB), provides a 25 per cent refund to employers who make the required severance payments.
    In cases where the employer refuses or is unable to make such payment, the Severance Fund makes the payment directly to the employee and the amount paid is recoverable by the NIB.
    However, the actuarial review found that “while employer rebates from the Severance Fund closely matched investment income over the three years [2018 to 2020] with no contribution income, payments made on behalf of employers who were unable to make the required severance payments totalled $51 million”.
    “During the three-year review period, employer payments were three times employer rebates, which indicates that many employers fail to make the required statutory payments to severed employees,” the report stated.
    The NIS actuary said that as a result of this, $56.6 million was due to the Severance Fund “from employers who did not make their required severance payments”.
    The actuarial review report said the Severance Fund would also be challenged by delayed but “significantly higher than usual” payments linked to unusually high redundancies caused by the COVID-19 pandemic.
    “It will likely take several years for employment
    and contribution collections to return to pre-2020 levels,” the actuaries predicted.
    “The number of outstanding severance rebates and employer payments pending as of December 31, 2020, were 393 and 856, respectively. Based on the average severance benefit payment (100 per cent) of $27 000 per claimant, it is estimated that the rebates and employer payments of $26 million are due for pending claims.”
    The report said that “delays in the appointment of tribunals and thus hearings have affected the processing of severance payments and timing of benefit payments”.
    Excluding contributions due and amounts owed by employers, the Severance Fund had $107.3 million in reserves at the end of the actuarial review period, including $21.3 million in cash.
    However, most of this – $88.5 million – was in investments, 97 per cent of which was tied up in Government bonds.
    Pending claims
    Given the estimated $26 million in pending severance claims, the actuaries said that “most of these bonds may need to be liquidated prior to maturity or exchanged with the National Insurance
    Fund for cash”.
    The Severance Fund’s investments declined by $95.2 million over the three-year period covered by the review, and the report explained that $50.3 million of this “was due to Government’s debt restructuring in 2018”.
    Given the challenges facing the Severance Fund, Osborne and Balkissoon advised Government to “conduct a comprehensive review of the Severance Act with specific emphasis on its relevance during current labour market conditions, and how severance benefits fit with other incomesupport benefits. “Improving equity among employers by ensuring that those who initially fail to make employer payments are eventually made to pay, as well as improving actual claims and benefit payment processes, should also be given high priority,” they recommended.
    They added that “while the fund’s sustainability is now questionable following debt restructuring and higher than normal redundancies due to COVID-19, a comprehensive review of the Fund is still recommended as most of the fund’s payments are made on behalf of employers who failed to meet their obligation, and there is little success in recovering these funds”.

    Source: Nation


  6. Options proposed for NIS rescue plan
    By Colville Mounsey
    colvillemounsey@nationnews.com

    An increase in the retirement age to between 68 and 72 years and a small hike in the contribution rate of half to one per cent are being recommended to help avert a crisis with the National Insurance Scheme (NIS).
    These are among the recommendations put forward by actuary Derek Osborne to avoid the Scheme running out of funds in just over a decade.
    Osborne, speaking to the media at the NIS headquarters on Culloden Road, St Michael yesterday, disclosed that other options included raising the first age at which old age pensions are payable anywhere from 62 to 65 years.
    He pointed out that the maximum pension payable is now 60 per cent and can be reached after about 36 years of contributions. He suggested that the number of years required to reach 60 per cent be increased to 40 or 45 years. The maximum pension replacement rate could be looked at with the goal of reducing it from 50 per cent to 55 per cent, he added.
    Review of benefits
    The actuary said that under no circumstance should there be a reduction in the minimum pension rate, which currently stands at $243 per week. However, he said the time has come to review some of the existing benefits offered by the NIS.
    “Any change to any benefits will not happen immediately but must be phased in over an appropriate period of time as was done in 2004. After 55 years of existence, all existing benefits will be reviewed, making sure that each benefit works effectively for those for whom they were intended,” Osborne said, noting that the
    invalidity benefit and unemployment benefits were two areas that could be tweaked.
    He explained that with the invalidity benefit, the NIS has a binary policy of paying either 100 per cent or zero. He said a payment of reduced invalidity benefit if someone returns to work for lower earnings could be a viable option.
    Such a move, he added, might incentivise people receiving invalidity benefits, who are capable of doing jobs such as answering phones or working from home on a computer, to seek part-time employment.
    On possible changes to the unemployment benefits, Osborne said: “The suggested reduction of the maximum unemployment benefit period from six months to four months [could be made], and a redesign of the Severance Payment Scheme to ensure relevance with the current realities.”
    He stressed the need to have more self-employed and informal sector workers paying into the NIS. Previously it had been revealed that only one in eight self-employed people pay up.
    “Forms do not easily allow this and we need to move to a flexible contribution payment system that does not require forms, does not require specific due dates and does not require specific amounts. Improving employer compliance is critical and the NIS must go after employers in a more determined way.”
    In relation to investments by the NIS, the actuary said it was no longer a good idea for the state-owned social security to put all of its eggs in one basket, namely Government debt. Last week Osborne disclosed that due to the Government’s 2018 debt restructuring, the NIS lost $1 billion, albeit a factor that would have only fast-tracked the current trajectory by three years.
    Reduce exposure
    “NIS does have over 60 per cent of its assets in Government debt after the restructuring; most of it is Series E bonds which get eight per cent after 25 years. So while it is a good rate of returns, it is a lot of eggs in one basket and this is not good from an investment standpoint. The NIS needs to consider whether or not they could reduce that exposure.
    “We don’t want to hurt the Government of Barbados to save the NIS; that does not work. NIS will be strong if you have a strong Barbados. So on a gradual approach, the idea would be to reduce the exposure in Government debt and find an alternative that gives you diversity by country, by currency and by type of investment,” he said.

    Source: Nation


  7. National Insurance town hall meeting

    Members of the public are being urged to join the discussion on the National Insurance Scheme as the National Insurance Department holds its first town hall meeting tomorrow.
    It will be held at Combermere School, Waterford, St Michael, from 6 p.m.
    The topic will be: How Can We Revitalise The National Insurance
    Scheme – For Us, Our Children And Grandchildren?
    The meeting, which will be live-streamed on social media, will also address the latest actuarial report. (BGIS)

  8. Critical Analyzer Avatar
    Critical Analyzer

    @David August 14, 2022 4:43 AM

    That is the same plan the Late Owen Arthur implemented when retirement age went from 65 to 67 and rates went up. Poor Owen must be turning in his grave. If that is the best they can come up with, they must think we are a bunch of fools feeding us warmed over soup.

    Does this mean we are going to work till we dead on the job so they can keep the Ponzi scheme they calling a pension fund on life support. A very poorly managed pension fund is nothing more than a Ponzi scheme like what Clico ended up being and we all know where that ended.

    The best solution is a two fold one

    1) Pay every citizen or permanent resident the current non-contributory pension on reaching age 65 and fund it with adjustments to VAT on an annual basis.

    2) End the current mandatory NIS contributory pension scheme and replace it with a true contributory pension scheme that works like those in the private sector where you only get a pension based on what you contributed.

    People will now have the freedom to choose which pension schemes they want to join if they want more than the non-contributory pension when they retire or invest their savings in other ventures if they are not content with the non-contributory pension.


  9. @CA

    It doesn’t matter the solutions implemented, a good economy will always b the requirement.

  10. 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

    Notice of CEASE and DESIST ORDER
    John said the 60s was the decline of US values, so he cannot post songs from the 60s movement when white hippies got stoned and made love and black radicals fought the man.
    Trump boys have a very limited set of musical references and artists that they can use.

  11. Critical Analyzer Avatar
    Critical Analyzer

    @David

    To have a good economy, government simply needs to get out of the employing people and micro management business.

    The only areas government should be involved in is Legislation Drafting and Regulation, Quality Standards Setting and Fair Trading Matters, Law Enforcement, Defense and Disaster Management, Land Zoning and Management, Road and Traffic Infrastructure management, Education to Secondary Level and Welfare Assistance for those below the poverty line all managed by the Civil Service.

    All other areas government has historically been involved in should either be fully privatised or run as non-profits managed by tripartite boards (staff, government and business expertise reps) and a contracted CEO.


  12. @ BajeabroadAugust 13, 2022 2:25 PM

    I was disappointed with your reply below:

    ……..And after you vote out this current government what next? Who implements the needed plan? The same BDLP candidate pool failures that generated the problems in the 1st place??……

    Your reply is based on complacency that irrespective of how bad our political system is, we only have the choice to elect either the Dees or the Bees. Is it any wonder the country is in such a state with this mindset. Imagine if you lived in a remote area with only two building companies. You used one to build you a house and it collapses. You then decide to use their “competitor” and the same thing happens. Would you return to the first builder and ask him to build you another house? Hell no!!!!

    The moral of the story is to look beyond the status quo and to make every effort to destroy every root and branch of its existence. Other groups will take its place for better or for worse.


  13. Johnny

    Joan Baez?

    Peter, Paul & Mary?

    These anti-war voices of the 1960s were never cut from the same reactionary political cloth as you 🤣

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

    “The moral of the story is to look beyond the status quo and to make every effort to destroy every root and branch of its existence. Other groups will take its place for better or for worse.”

    they need to WEAN THEMSELVES OFF…the corrupt political crutch..


  15. @ David

    The interest rates were low but markets both overseas and in the region have done well over the last few years. Look at Fortress caribbean growth fund, sagicor growth fund and others to mention a few.

    Don’t look for no excuses, both the dems and the Bees must take blame for demolishing the NIS financial position. First sinkyuh forced the NIS to buy billions in worthless bonds, then Mia came along in the restructuring and wiped $1 billion dollars in assets off the NIS books. So both parties got to hold nuff blows for where the fund now stands.

    Then let’s look at the properties which the NIS own and who are the tenants of most of them. What rents are they paying as a percentage of investment return? The whole thing is one big sham now. The NIS is nothing more than a financial facilitator for central government. It stop being OUR LIFE LINE year ago and it’s time every bajan realises just that. It is no more than an unaudited cash cow for the purchase of the states worthless paper. Although now it seems the same can be said for the central bank it would appear.


  16. I enjoy their music but laugh at the artists of the 60’s as it is clear their very same liberal left wing thinking has evolved into the same authoritarian thinking they claimed to detest as anyone could have predicted.

    Left is left, you can’t get something from nothing!!

    I like to watch for their self righteous expressions as an indicator of how they turned out true to form over time.

    Turn off the volume and watch the expressions, …. like they plan to change the world and recreate it in their own image.

    Imposters just using the capitalist system they claimed to hate to make a fast buck.

    … but I enjoy the music of my youth and I enjoy even more seeing what an older person at the time would have said about how they turned out today …”I told you so”.

    Nothing most youngsters have substitutes for age, wisdom and experience.

    All those artists were and are imposters!!

    Like most politicians … Trump excepted!!


  17. So how many people going to Combermere Hall to catch COVID?

    It’s the economy stupid, it has been destroyed by the left wing ideologies of past politicians.

    Saving the NIS is not possible!!


  18. It is disingenuous that an unconstitutional Government could make a billion in assets disappear from the NIS and then come to us trying to convince us of its ideas to save the fund.

    What a load of shite.

    https://barbadostoday.bb/2022/08/11/billion-dollar-asset-slash/


  19. @ John A
    “It stop being OUR LIFE LINE year ago and it’s time every bajan realises just that. It is no more than an unaudited cash cow for the purchase of the states worthless paper. Although now it seems the same can be said for the central bank it would appear.”
    ~~~~~~~~~~~~~~~~~~~~~~~~~~
    An excellent and succinct summary of where we are financially as a country….

    The GALL of people in charge of an UNAUDITED NIS fund, with BILLION-dollar losses, and unheard of bad debts, holding ‘Town Hall Meetings’ to solicit solutions from the very same clueless BBs that they have have been robbing systematically….

    Typical of the NIS GALL, is to buy out today’s Brass Tacks Sunday show with their spin artists (and bring Petra out of his husband’s bed in France to host it….) when we ALL know that THE brass Tacks Host with UNQUESTIONABLE knowledge on the issue is called Walter.

    What a place!!
    What a CURSE…

  20. Critical Analyzer Avatar
    Critical Analyzer

    @Bush Tea August 14, 2022 11:57 AM

    Peter is the only one who can host, any other moderator and the NIS panelists won’t come. Walter being by far the hottest of the too hot to handle moderators would have the panel crapping their pants.


  21. You all are a bunch of ungrateful dogs.

    Can’t you see it is your debt the GOB has skillfully avoided and you all don’t have to pay it now!!!!!!

    OK, so the NIS is short a billion but that is a billion dollars you don’t have to pay.

    …. if you believe that you will believe anything!!

    The problem is that in borrowing as though there was no tomorrow, the GOB did not develop the productive sector of the economy but just built edifices which we can’t eat and which decay.

    We let them do it.

    Who are we now to complain when the day has arrived for us to pay up?

    We borrowed the money through our duly and unduly elected officials.

    The most we could insist on is that since the GOB is unconstitutional, every thing it has done since 2018 is null void and of no effect and whosoever was foolish enough to advance monies in that period deserves nothing from us.


  22. @ Bush

    The biggest insult to us was the nonesence of its a WASH situation so don’t worry!

    Listen let me make it clear in bajan terms what this crap means. “We should be grateful that the government cancel $1 billion worth in debt to the NIS so we don’t have to pay it back.”

    So what wunna saying is that the fact that wunna right off $1 billion dollars that is owed to the NIS, which in fact is we money, is nothing to worry bout! To say that government does now not have to pay them back is a plus, is an insult to our intelligence as well.

    When statements like that are made and left unchallenged, how do you expect any of us to take the whole NIS issue seriously? What could anyone with that outlook offer any of us in any form of discussion that would be worthy in a debate on the fund? I also agree if you wanted a real moderator on this issue Walter Blackman is the man for it.


  23. Wow can the NIS issue be taken seriously with a billion dollars in assets gone?

    Who walks around with a billion dollars in their back pocket to put it back?

    Reminds me of Tank chasing a boy who had picked limes off is tree telling him to “put them back please”!!

    NIS was a ponzi scheme that relied on a functioning economy to keep going.

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

    Running deficits DESTROY ECONOMIES….i think the US’ is somewhere in the TRILLIONS OF DOLLARS….never a good thing..

    ..ya can’t write it off either..

    …it NEVER GOES AWAY…


  25. @ John A
    You cannot make this stuff up… it would be too far fetched…

    After allowing second rate ‘leaders’ such as Kellman, Stinkliar and more recent company to make stupid investment decisions with our multi billion NIS scheme – resulting it it being effectively dead in the water, ….if you listen VERY carefully, you will hear rumblings from ‘HIGH PLACES’ about the need for Bajan Brass Bowls to now transfer their savings from ‘non-productive bank savings’ into BOSS Bonds.
    Note that those savings were made unproductive when the Central Bank allowed the Banks to do as they please with customers….

    So we have the…
    Same crooked masterminds, SAME SHIITE gambit, same brass bowls as targets…. ands the last of their moneys.

    LOL
    ,,,and with Enuff support, both YOU and Bushie done know that Bajans WILL take the BOSS bait…….

  26. Amit Uttamchandani Avatar
    Amit Uttamchandani

    Dear David et al,

    I launched a new project today, barbadosfiles.com.

    The goal of the site is to curate and share public docs posted on individual GoB websites in one central place.

    Open data is something that is important to me, and while I wait for GoB to create a portal hosting open data from across all MDAs, hopefully my site fill the void.

    I have started with two data sets. All actuarial reviews (as far back as the 70s) that I could find on the NIS website. I then pulled all of the Auditor General reports that I could find published on the BAO website. As of today both sets of docs are in one place. I will be adding more as time goes by.

    Kind regards,
    Amit Uttamchandani
    https://barbadosfiles com


  27. Thanks Amit.


  28. @ David /Amit
    The FTC Lady on TV tonight said that BL&P posted 1200+ pages of documents for their rate case coming up.
    Would it be possible to post these documents (or some key ones) on Amit’s repository?

  29. NorthernObserver Avatar
    NorthernObserver

    @David
    And you mentioned ‘other factors’ when I teed off on GoB Paper the other day
    “However, most of this – $88.5 million – was in investments, 97 per cent of which was tied up in Government bonds.”
    The nickname Big Sink is very appropriate. First it was Bonds, then a whole list of payables, legal or otherwise, with some printing to get to the finish line.
    The end result…a whole lot of paper of questionable value, a mountain of A/Ps and NO cash.
    The man was a genius, the WB is lucky to have him 😂😂

  30. NorthernObserver Avatar
    NorthernObserver

    “or some key ones”
    LOL…you ever read such documents anywhere?
    There will be 6 key paragraphs scattered among the 1200 pages a.k.a needles in a haystack.
    The 1200 is intentionally daunting, so most only read a few pages and conclude NTSH.
    You can’t ask anyone to find the ‘key ones’ 😂😂
    If you believe BBB, bullshit baffles brains, you can imagine what is does to Brass Bowls.


  31. @Bush Tea

    Posted the pages where, to BL&P’s website or FTC.

    Do you mean the applications?

    https://www.ftc.gov.bb/index.php?option=com_content&task=view&id=424&Itemid=125


  32. The only conceivable reason I can think of to go to Combermere Hall to hear about the NIS would be to hear who is getting locked up and for how long.

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

    I second that John.

    ..these are TRYING THE MOST to NOT GO TO PRISON FOR THOSE NIS THEFTS..trying to involve EVERYONE ELSE so they can cast blame later….trying to avoid accountability..

    .prison is exactly where they all belong, IN A LARGE UNDERGROUND CELL…as the ENABLERS accompanied by those WHO BENEFITED from the billion dollar thefts…

    don’t know how they can ROB A WHOLE ISLAND generationally and believe they have some entitlement to do so they and their criminal friends….and believe that they will not be held accountable..


  34. @ David
    Presumed that she meant to the FTC – to be shared on their (hard to navigate) website.

    @ Northern
    Of course you are right that this is a deliberate attempt to hide key trees in a forest.
    But Bushie will be depending on a (b)logger of your ilk to cut to the chase… LOL

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