Officials at the National Insurance Board (NIB) are providing more insight into the need for a rate rise and how it will work. NIB Training and PR Consultant, Jayson Moxey and Deputy Director, Tami Francis spoke with ZNS News on the pending rise on Tuesday.
According the Moxey the increase does not cover all benefits. He said, “that does not take into consideration the payment of sickness, maternity, unemployment, funeral and under the industrial branch, injury, disablement, death and free medical care. Nor does it take into consideration the administrative cost.”
There are approximately 46,000 pensioners in the country, Moxey says this costs NIB more than $27 million per month. “Revenue from contribution is approximately $23 million per month. So on the pension side of the scheme alone the Board is experiencing a $4 million deficit,” he said.
For her part, Tami Francis spoke about the impact Hurricane Dorian and COVID-19 had on Bahamians. She said, “many persons for the first time in their lives having to seek assistance from NIB. So NIB became relevant, without NIB, I would have hate to have seen what would have happened to The Bahamas without NIB during the COVID-19 pandemic.”
Moxey also explained the impact that the rate hike, effective the first Monday in July, will have on local businesses saying, “if you have a payroll of $50,000 per month that will only cost you an additional $375 more per month if you pay 0.75% or $4,500 annually. So its not a substantial increase at once.”
The contribution rate rise was announced by the Office of the Prime Minister in June 2023.
