The Tribune

By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

THE National Insurance Board is paying out roughly $610,000 a month in unemployment benefits to jobless Bahamians, according to State Minister Myles Laroda with responsibility for NIB.

Mr Laroda said if payments continue on this trend, NIB payouts could total between $7m and $8m by year’s end, a reduction of what was paid out in past years.

“I spoke with the managing director a few minutes ago. National Insurance is paying out about $610,000 per month,” he told reporters before going to a Cabinet meeting.

“If we do the figures, over the past few years, it’s around $12m. So, at this pace, we’re looking at between seven and eight million would be the figure so that’s considerably less than in the past.”

He also expressed optimism that pay outs will continue to trend downward, but also noted that officials are remaining cautious as things could change.

“Well, hopefully, if we continue on this trend, we should see a reduction,” Mr Laroda said.

“I don’t want to be presumptuous, because, you know, things could turn on a hurricane or some catastrophic financial situation that could create a downturn. So, we just hope that this trend continues.”

Asked whether he was concerned about job layoffs resulting in more unemployment claims once electricity bills increase next month, the state minister replied: “Well, hopefully that is not the case. We are moving into the Fall and into winter. Usually the trend is electricity costs would go down, people (are) using less air conditioning and stuff and we just hope that until relief comes that there is no need to lay off.”

After COVID hit in 2020, NIB paid out over $100m in unemployment benefits to support thousands of Bahamians who were laid off during the health crisis.

Once NIB’s 13 weeks of payments stopped, the government introduced its own COVID unemployment programme to provide further income support to jobless Bahamians.

More than $200m was spent on the unemployment benefit scheme by the government at end-September 2021.

The number of benefits paid out over the years has left NIB reserves in a state of decline.

This is because payments have exceeded the incoming contributions since 2016, NIB had previously said.

Yesterday, Mr Laroda said discussions are continuing at a Cabinet level as to what action needs to be taken to ensure the fund’s financial sustainability.

“Discussions continue,” he added. “You know, it’s a fluid situation and that time will come when a decision on that matter will be revealed.”

This comes after The Tribune exclusively reported in April that the 11th actuarial review of the National Insurance Board predicted that the fund could be depleted by 2028.

That report had reduced the fund’s potential depletion timeline by one year, as the 10th review had made a prediction of 2029.

It also recommended NIB to increase the contribution rate by two percent and continue increases every two years until 2036.

Prime Minister Phillip “Brave” Davis has already said that while an increase would be considered, there would be none until the government is able to arrest the headships facing Bahamians.