THE National Insurance Board yesterday said its reserves are in a state of decline because the amount of benefits paid out annually have exceeded the incoming contributions since 2016.
Given the current structure of the social security programme, the contribution rate and the number of pensioners receiving benefits, this trend will continue, and the differential between benefits and contributions will increase, NIB also said.
For the fiscal year ended December 2021, NIB said the benefits payments to the public exceeded the contribution income by $70m.
NIB gave a glimpse into the dire straits of the fund yesterday in a statement that sought to refute claims made in videos recently posted on Facebook by Lincoln Bain and lawyer Maria Daxon.
According to NIB, no decision has been made to increase the age of retirement from 65 years old to 67. Additionally, the board said claims that it provided a bail out to Bank of the Bahamas were “unfounded”.
The claims were contained in videos posted to Facebook by Lincoln Bain and Maria Daxon. Both contested seats in the 2021 general election and lost as part of the Coalition of Independents.
“With respect to NIB operations, the public is advised that no decision has been made at this time to increase the retirement age from 65 to 67. The statement made is false,” a statement from NIB said yesterday.
“NIB further advises that while the reserves of the NIB have grown over the life of the fund (and now stand at $1.5bn), the reserves are currently in a state of decline, principally because the amount of benefits paid annually have exceeded the amount of annual contribution income received from 2016. Given the current structure of the social security programme, the contribution rate and the number of pensioners receiving benefits, this trend will continue, and the differential between benefits and contributions will increase. For the fiscal year ended December 2021 the benefits payments to the public exceeded the contribution income by $70m.
“NIB also advises that the suggestion that NIB provided a ‘bail out’ for the Bank of the Bahamas is totally unfounded.
“With regard to the properties owned by NIB the public is advised as follows: During the period 2007 to 2014 NIB acquired several properties at a purchase price of $6.6m for development and ultimate use of various Government departments. The resolution referred to in a social mediavideo related to just two lots purchased by the NIB.
“A total of $6.6 million was paid for the other three lots. As a result of recent trespassers accessing the properties and causing damage thereto NIB found it necessary to place security guards at its properties. The NIB further advises that a matter is presently before the courts in relation to a trespassing on its property.
“The NIB refutes any claim that the properties have been used by or for the benefit of officials or employees of NIB. It is also absolute fantasy to say that NIB obtained the properties from politicians or paid money to politicians for the property.
“The NIB requests that members of the public verify the accuracy of information before making and repeating false and unfounded statements. Such statements even though untrue erode public confidence in the work and management of the Fund that tens of thousands of Bahamians rely on for their safety net.”
Comments
tribanon 1 year, 10 months ago
It's now way too late to prevent the inevitable financial collapse of the National Insurance Fund caused by the gross incompetence and greed of successive corrupt FNM and PLP administrations alike. From its inception the administrative costs of running the National Insurance Fund have been outrageously excessive due to its grossly over-bloated headcount combined with greedy crony consultants of every kind constantly sucking on it, not to mention the heavy toll taken by outright and unchecked fraud.
And of course, the National Insurance Fund's bank accounts will continue to be wrongfully used whenever possible by successive corrupt PLP and FNM administrations as a "go to" cookie jar to make all sorts of wasteful and inappropriate investments with total disregard of the NIB's fiduciary obligations and projected liquidity needs for our aging population.
So along comes the very same people, who for decades have played a big role in the impending collapse of the National Insurance Fund, people like Davis and Gibson, trying to now convince those of us who have been making our National Insurance contributions for many years, that we are somehow responsible for its impending collapse by not contributing enough. Talk about audacious gall !!
No matter what the very cruel Davis may now say, he will very soon be seeking to have employers and employees bail-out this defunct Ponzi scheme by way of higher, in fact exorbitant, additional contributions, combined with significantly reduced retirement benefits. But in these extraordinarily difficult times, Davis and Shameless Shane Gibson are gravely mistaken if they foolishly think blood can somehow be had from a stone. The Bahamian people are completely tapped out like they have never been before, thanks in great part to decades of corrupt government activities of the kind Davis and Gibson are well familiar with.
tribanon 1 year, 10 months ago
The corrupt, incompetent, and elitist political ruling class in our country, both of the PLP and FNM persuasion, will never ever admit that they are responsible for having bankrupted the national insurance fund. From day one they ran it like a Ponzi scheme with little or no regard for the longer-term fiduciary obligations associated with its intended social security purpose.
And now the very cruel Davis wants to squeeze even more out of the thousands of contributors to this national insurance fund over many years who are finally beginning to wake up to the fact that the benefits they were hoping to get back in their retirement years will either never be received or will be significantly reduced.
Yup, here we see the outcome of decades of unbridled greed by our very corrupt political ruling class. Yet cruel Davis will soon be calling for us to put even more of our cookies into 'his' cookie jar, all the while knowing that we will likely never get to eat any of them at the end of the day.
tribanon 1 year, 10 months ago
The very cruel Davis at the urging of squirming LaRoda wants hard working honest Bahamians to flush more of their increasingly scarce money down the National Insurance Fund toilet bowel when he knows full well that NIB is nothing but a corruptly run and most wastefully managed Ponzi scheme which will never be able to make good on its obligations to those employers and employees who have paid many thousands of dollars into it over many years.
Both cruel Davis and squirming LaRoda need to be told in no uncertain terms by employers and employees alike that enough is enough. If they sincerely want to try improve the financial condition of the National Insurance Fund, then let them first demonstrate that on a good faith basis by slashing the over-bloated and very costly headcount of NIB by at least 50%. NIB's annual administration costs are more than three times what they should be compared to national social insurance schemes in many other countries.
It's generally known that our National Insurance Fund has been run into the ground and bankrupted for all intents and purposes by decades of bad and fraudulent investments made at the behest of the corrupt ruling political elite. And now these same corrupt people have the temerity and naked gall to call on poor struggling employers and employees to put even more of their hard-earned money into a scheme destined not to be able to make good on its obligations when all is said and done. Talk about Davis being cruel to the n'th degree!
DDK 1 year, 10 months ago
You are, of course, right on all counts. I also believe the system has been severely taxed by the "bloated" unchecked immigration of folks of foreign nationalities, somehow absorbed into the population while proliferating alarmingly. These new "Bahamians" are now a part of the welfare system which has put a huge strain on NIB as well as the educational, medical and other government services
tribanon 1 year, 10 months ago
Translation: "Whether y'all like it or not, ya gonna be royally shafted with a big increase in your national insurance contributions before the middle of next year because my government needs more of your funds put in that Ponzi scheme to fritter away."
Yep, the very cruel Davis keeps bringing this subject up because he has every intention of socking it to all national insurance contributors. So just get ready to bend over and take what's coming from the very cruel Davis.
sheeprunner12 1 year, 10 months ago
Davis & LaRoda need to lay ALL of NIB audited accounts on the House floor for an honest debate before they ask for more increases from citizens.
JokeyJack 1 year, 10 months ago
Lincoln Bain them was saying something - but NIB them say it wasn't true. So I guess then there is lots of money at NIB - or Lincoln them lying - I just don't know. Maybe there is lots of money and Bahamians don't need no help on nothing. Plenty money for light bill etc. Why Lincoln them making noise? They should know Bahamians don't have no problems, and so that's why they didn't vote for them. They voted for more of the same they did get the last 49 years and today they celebrate their own cut hip.
quietone 1 year, 9 months ago
Very serious comments...
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