Senator the Hon. Dr. Esther Byer-Suckoo, Minister of Labour, Social Security and Human Resource Development.
Senator the Hon. Dr Esther Byer-Suckoo is assuring Barbadians that there is no immediate threat to the National Insurance Fund (NIF).
She revealed yesterday that overall it continues to be “sound and viable”.
The Minister of Labour, Social Security and Human Resource Development gave this assurance as she disclosed the findings of the 15th Actuarial Review, which analyses the experiences between 2012 and 2014 and presents prospects for the National Insurance, Unemployment and Severance Funds. Experiences between January 2015 and September 2016 have also been factored into all analyses and recommendations.
She stressed that the Fund “is not facing cash flow challenges at this time”, noting that the National Insurance Management and Board continues to monitor very closely the cash flow situation.
“And it continues to be a case where the contribution and investment income is sufficient to meet the benefits and other pay-outs of the National Insurance – so the National Insurance is not facing cash flows challenges at this time,” she reiterated.
“All National Insurance Schemes around the world face challenges. In fact, the challenges that our National Insurance face are not unlike those challenges that we see others face. For example, the issue of economic growth; the challenge of an ageing demographic; the issues with technology; the issues of self-employed persons not contributing… all of those are global challenges,” she pointed out.
While acknowledging that the biggest benefits paid out by National Insurance are pensions, Dr. Byer-Suckoo told reporters, “But, as evidence of the fact that the National Insurance is sound and viable, there really is no pension reform that is being proposed at this time.
“The actuary has indicated that there is no need for pension reform until between 2048-2074… However, if the economic growth is weak, 0.75 per cent or lower, then of course we would have to look at engaging in pension reform at an earlier date, somewhere between 2028 and 2045.”
She also disclosed that the actuary concluded that the National Insurance Fund will be very well funded and sustainable, if Barbados can achieve sustained economic growth – an average annual economic growth rate of about 1 to 1.5 per cent.
“…Our major concern is that there is economic growth and that would ensure the viability of the National Insurance Fund. That economic growth is not something that National Insurance itself is directly responsible for, but as we know through the statements by the Minister of Finance, his budgetary measures articulated in the Financial Statement and Budgetary Proposals recently, such measures would see us continuing on an economic growth path.” (TL)