The Tribune

By LETRE SWEETING

lsweeting@tribunemedia.net

MYLES LaRoda, minister of state with responsibility for the National Insurance Board, says the agency is primed to lose about $70m this year but there has still not been a decision made concerning the NIB contribution rate.

In April, Mr LaRoda told this newspaper that a new actuarial review of the National Insurance Board has predicted that the fund could be depleted by 2028 should officials neglect to take urgent action.

He then told reporters he anticipates that NIB contribution rates will increase within the next year given the unsustainability of the social agency’s fund. However, Prime Minister Philip Davis later said there would be no increase in NIB contributions until his administration is able to arrest the hardships facing Bahamians.

Mr LaRoda said yesterday that though the government is aware of the situation at NIB, no decision will be made until Cabinet addresses the issue.

“No decision has been made for that. Conversations are fluid. It is continuing but, no decision as to say, ‘ok we’re going to raise it in this time or we’re not going to raise it or whatever it is’. We are weighing all of the options. We’re looking at the situation in its totality and when the time comes for that decision to be made, it will be made,” he said.

Speaking of NIB’s position, he said: “NIB will lose about $70m this year, let’s put it that way. So we’re talking about around $6m or $7m a month or so. That’s the reality of what’s been going on, for the past couple years.”

He said recommendations from 11th actuarial review of NIB done earlier this year have not been taken into account.

“That has not been taken into consideration nor has the decision been made with regards to recommendations or if or when the increase is going to be made. Notwithstanding, we all know what the realities are, so we’ll cross that bridge when we get there,” Mr LaRoda said.

“The entirety of the amount of money NIB is taking in now is, the amount of money that NIB is paying out and all of the upkeep of the buildings and those type of stuff. That’s a Cabinet decision,” he said.

Earlier this year, Mr LaRoda said an “increase in the contribution rate cannot be circumvented.”

Earlier this month, he said NIB is paying out roughly $610,000 a month in unemployment benefits and if payments continue on this trend, payouts could total between $7m and $8m by year’s end, a reduction of what was paid out in past years.

“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.”

Mr LaRoda also expressed optimism that payouts will continue to trend downward, but also noted that officials are remaining cautious as things could change.