MYLES LaRoda, minister of state with responsibility for the National Insurance Board.
By LYNAIRE MUNNINGS
Tribune Staff Reporter
lmunnings@tribunemedia.net
THE National Insurance Board took 300 people to court for failing to pay NIB contributions last year –– a 12 per cent increase over 2022 –– and expects its deficit to drop by 61 per cent once contribution rates increase in July.
NIB projected a $98m deficit last year, with Myles Laroda, the former minister responsible for NIB, saying benefits alone were expected to exceed contribution income by about $86m.
Tami Francis, NIB’s deputy director, said yesterday that if NIB rates do not go up this year, the deficit would be around $65m.
“However, with the upcoming increase for July 1st, our deficit will be reduced to about $38m, so that’s a $27m reduction,” she said.
“So, you can see the contribution rate increase is something that is very necessary and we are on our way towards sustainability of the fund.”
Consecutive actuarial reports have indicated that the NIB contribution rate should be increased to prevent the reserve from being depleted before 2028.
Reports show how the country’s changing demographics –– an ageing population and declining birth rate –– widen the gap between benefit payouts and contributions.
In July, the increased rate of 1.5 per cent will be shared equally between employers and employees. The employers’ rate will increase from 5.9 per cent to 6.65 per cent.
NIB director Heather Maynard said about 300 people, including self-employed people, were placed before the courts last year for non-payment of contributions or failure to produce records.
“There are several offences. The main offence is failure to pay,” she said. “There is also an offence called failure to produce records, and usually, when persons are summonsed to appear in court, they pay their obligation. If they cannot pay the obligation in full at that time, they will enter an instalment agreement and pay off their arrears.”
She said the NIB aims to modernise the administrative processes through an online card renewal portal, employer self-service for monthly compliance obligations, a mobile app rollout, a claims portal, and a revamped website.
Comments
Sickened 1 week, 3 days ago
Doesn't the government owe NIB a bunch of money? Anyone know what the amount is?
moncurcool 1 week, 3 days ago
That is what the minister needs to talk about, rather than trying to steal more money from the Bahamian people with this ponzi scheme.
ExposedU2C 1 week, 2 days ago
Bingo!
pt_90 1 week, 3 days ago
You can read their financials but ill summarize
As of 2021
Loans to the public treasury 515m
Loans to other public entities (Airport, UB, PHA, Bridge Authority etc) 216m
These are outstanding cumulative numbers
In 2021, NIB made about 70m in investment income from its total investment book. Judging by its book a a large amount of it would have come from those investments. Others being investments in Aliv and others
By comparison its contribution income was 270m
A breakdown of the above loan portfolio looks like the below
Direct to the treasury
Bahamas Government B$ notes 7(b) 2,847,000
Bahamas Government treasury bills 7(c) 1,717,000
Bahamas Government US$ notes 7(d) 30,253,000
Bahamas Government US$ loan 7(e) 13,513,000
To govt entities
Nassau Airport Development Company Limited debt securities 7(j) 91,678,000
Education Loan Authority bonds 7(k) 30,542,000
Bahamas Development Bank bonds 7(l) - 269,000
Bahamas Power and Light Company Limited bonds 7(m) 18,573,000
Clifton Heritage Authority bonds 7(o) 7,993,000
Loans to Bahamas Government entities 7(q) 58,104,000
Bridge Authority bonds 7(s) 1,856,000
The College of The Bahamas redeemable term notes 7(u) 923,000
Public Hospital Authority bonds 7(v) 8,104,000
ExposedU2C 1 week, 2 days ago
Bottomline:
The corrupt Davis led PLP government has put itself and our country in such a dire financial predicament that it cannot stop using ever increasing national insurance contributions made by private sector participants to fund its continuing deficit spending while trying to avoid defaulting on our nation's national debt and civil servant pension entitlements.
History has proven time and time again that corrupt governments dependent on growing the public sector to buy votes and stay in power always create a welfare state that is destined to become a failed state.
rosiepi 1 week, 3 days ago
So how much was actually realized from these court cases, ie. as in judgements that were satisfied not ordered? And how many deadbeat companies are still in arrears, leaving their employees in the lurch?
sheeprunner12 1 week, 3 days ago
How much money did these 300 ppl owe NIB???
These politicians throw out red herrings to try and fool the citizens.
We all know who owes NIB the most money, the PEPs.
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