The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE National Insurance Board (NIB) saw its contribution income grow by 13 per cent to just over $229m in 2013, with benefit payments for the year increasing 11.5 per cent to $222.7m.

In its 2013 annual report tabled in Parliament yesterday the NIB noted that despite a weak economic environment, it saw contribution income increase. “However investment income for 2013 saw a slight decline over the previous year. The majority of the growth in contributions was due to the contribution amendments that affected hospitality workers and pensionable civil servants. In 2013 comprehensive income was $33.7m, bringing reserves from $1.653 billion to $1.687 billion,” the report stated.

“Contribution income moved to $229.4m for the year from $203m  for 2012, a growth of 13 per cent. This growth was mainly due to contributions amendments that took effect from July 1, 2013. Hospitality workers who receive formally paid gratuities now pay contributions on the gratuities.

Pensionable civil servants now pay on the same ceiling and rate as other works. They previously paid contributions of $110 per week for long term benefits rather than on total earnings up to the ceiling. A portion of this growth is due to an increase in interest collected on arrears. Interest on late paid contributions in 2013 were $414,500 compared to $157,230 in 2012,” the reported stated.

 NIB reported that benefit expenditure continues to grow across the benefit types, long-term, short-term and industrial. “Benefit payments for the year totalled $222.7m compared to $199.8m paid in 2012, an increase of 11.5 per cent.”

“At the end of 2013, National Insurance Fund Investments stood at $1.580 billion up from $1.545 billion at the end of 2012. Investment returns were good despite the economic environment. The average rate of return on investments during 2013 was five per cent. The equity portfolio continued to outperform expectations returning 10.1 per cent on both the local and United Stated portfolio.”

NIB saw 917 employers added to its register in 2013. In 2012 employer registrants stood at 2,197 and rose to 3,114 in 2013. “The industrial, retail, hotel and restaurant made up the largest proportion of registrants at 37.7 per cent,” the report stated.