The Tribune

EDITOR, The Tribune.

National Insurance Minister Brensil Rolle’s recent statement regarding the $263m the National Insurance Board (NIB) has given to Bahamians in assistance and jobless benefits raises the question as to how solvent is the NIB pension fund. Over a quarter of a billion dollars is a massive amount of money to disburse in the two year timeframe Rolle mentioned, especially with the unemployment assistance continuing at least until the Fall. With so many thousands of Bahamians either being furloughed or outright terminated since the advent of COVID-19, the Free National Movement (FNM) government has been left with virtually no alternative, other than to facilitate the biggest government funded social assistance programme in the history of The Bahamas.

And for the most part, the government has turned to NIB, which is perhaps the most lucrative government agency, to fund this initiative. While I support the move to help struggling Bahamians, I am becoming concerned that, in the event this COVID-19 recession drags on into 2022 and beyond, the FNM or whichever party is in power, might be forced to tap into the pension fund, which could place it in jeopardy of being depleted. This could lead to pensions being drastically reduced or contributions being increased to replenish the fund.

Personally, I would prefer the latter option, as social security benefits for retirees allows them to live with some semblance of dignity in their twilight years. Still, with the hundreds of millions doled out in less than two years, Bahamian pensioners are probably becoming jittery. The FNM has no short term alternative, other than to continue the unemployment benefits scheme, especially with an election looming.

KEVIN EVANS

Freeport,

Grand Bahama,

June 13, 2021.