Admitting that the National Insurance Fund is facing several issues, Minister of Finance and Economic Affairs, Christopher Sinckler, nevertheless is giving the assurance that it still remains viable.
“Yes there are issues confronting the Fund as is the case with all social security schemes, but the story across the board is that the Fund is viable, the Fund can continue to meet its obligations and commitments relative to the future and that the Fund is not broke, or has run out of money, or is about to close down and leave pensioners in the lurch,” he insisted.
Addressing Parliament yesterday as he led off the debate on the National Insurance and Social Security (Amendment) Bill 2017, Sinckler sought to paint a picture of the history of the fund and its current financial standing.
“In 1967, the NIS had $2.5 million in reserves in its bank account. By the end of 2016, the NIS reserve or the wealth of the Fund was registered at around $4.7 billion … in assets, liquid and fixed assets and investments anywhere around the world. That is a substantial amount of money. In fact, it is so substantial Mr. Speaker Sir, that it is perhaps the single largest financial institution in Barbados by far,” he said.
Sinckler stated that these figures showed the tremendous growth of the society and economy over the years.
“In 1967, short-term contribution income was $2.7 million. By 2000 that had risen to $300 million and by 2016, $527 million. That is just contribution income alone… If we look at investment income, in 1967 the Fund was receiving $24 905. By 2000 it was receiving $87 million in investment income, but by the end of 2016, it was receiving $289.6 million in investment income. This is how huge this fund has become… If you are talking about short-term claims received, there were 3 073 claims in 1967, by 2000 that had risen to 75 956 claims. By the end of 2016, short-term claims, which is when people get ill and they get a few days home from the doctor, it had risen to 63 391 claims being placed on the fund,” he noted.
In addition, he outlined that Sickness Benefits paid rose from $48 747 in 1967, to $19.8 million in 2000 to $24.2 million in 2016, while total benefits paid went from $49 227 in 1967, to $238.8 million in 2000 to $637.8 million by the end of 2016. (JMB)