The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE National Insurance Board (NIB) pays out about $12 million monthly in long-term pensions, its director, Algernon Cargill, saying yesterday that their 4.6 per cent increase to come in July was "good news" for recipients.

Mr Cargill told Tribune Business: "We pay out currently about $12 million a month in long-term pensions. According to the amendments to the National Insurance Act and regulations that were passed in 2010, the pension payments and long-term benefits will increase every two years automatically by the cumulative change in the consumer price index (CPI).

"It's good news, really. The good news is that persons are receiving higher pensions, and it is now legislated that pensions increase every two years. All pensions and long-term benefit payments will go up automatically in July."

Mr Cargill added: "The Social Security Reform Commission of 2005 recommended that benefit payments keep pace with the cost of living, and because we want the cost of living to remain the same year-over-year it's important that pension payments increase every two years. That is why we change pensions by the cumulative change in the retail price index plus 2 per cent."

The first such automatic inflation-based pension increase took place in July 2010. The Department of Statistics reported that combined inflation in 2010 and 2011 was 4.6 per cent.

As a result, the increase to be applied in July 2012 to most NIB pension amounts will be that percentage. Pensions awarded between July 2010 and June 2012 will receive slightly lower adjustments based on the time period since the pension was awarded.

According to NIB's 2010 annual report, over 30,000 persons received pension payments to their bank accounts. The number of contributory pensions increased, while the number of non-contributory pensions decreased.