Public Services and National Insurance Minister Brensil Rolle.
By KHRISNA RUSSELL
Deputy Chief Reporter
krussell@tribunemedia.net
NON-COMPLIANT employers failing to pay workers’ National Insurance Board contributions owe the board up to $17m, Public Service Minister Brensil Rolle said yesterday, as he warned time might be running out for these offenders.
The minister, who also has responsibility for NIB, further revealed that in 2018 the social security facility was paying out more than it earned in revenue.
He said preliminary unaudited figures showed that contribution revenue intake was $283m for 2018 while expenditure was around $292m.
Faced with a serious shortfall, Mr Rolle said NIB wants to go after large employers and the self-employed who owe between $14m and $17m.
“There is a concern at NIB and the concern is to self-employed individuals, employers and others who do not pay for their employees and sometimes they do not pay for themselves,” Mr Rolle said as he delivered his contribution to the 2019/2020 budget debate yesterday.
“I say to these individuals, NIB is only able to fulfil its mission as an income replacement programme that assists Bahamian workers during a difficult period of their lives when employers (and) workers pay in the funds.
“These contributions are then invested prudently by NIB to grow the National Insurance Fund. Employers hold an important fiduciary responsibility to remit the contribution and the funds for all employees. Whether or not they’re deducted from their salary or not that’s their responsibility.
“I therefore implore all employers and self-employed persons to become compliant. Not only is it the law, but it is the right thing to do. At the end of the day your employees will depend on these funds.
“I’m speaking to taxi drivers, straw vendors, contractors, lawyers and others. I just want to remind them that nothing is more tragic than having not made contributions than to realise at the age of 65 that there is no retirement benefit at the NIB for you. Imagine for a moment how daunting that would be to anyone.”
He also said: “NIB has pledged to step up its enforcement efforts in 2019/2020. We want to pursue the non-compliant employers especially those with large arrears.
“I just want to say that the last look I had at large employers who owed NIB, I think the amount was someplace between $14m and $17m owed to NIB by large companies.
“Imagine that, Mr Speaker? Think of the number of employees that will not benefit because their employers did not make a contribution to NIB on their behalf. Think about the thousands of ordinary Bahamians whose funds may have been deducted who are working with the view that their contribution has been paid, only to be told by NIB that the contribution was not received by NIB.”
To satisfy the shortfall, Mr Rolle said NIB has set an aggressive target for contribution income in the upcoming budget year.
This includes an assertive public relations campaign, targeted inspections, increased avenues to pay contributions electronically, efforts to make payments easier and the establishment of relationship officers for improved services.
Comments
tell_it_like_it_is 5 years, 5 months ago
It's the government's fault that this foolishness has been allowed to go on without punishment for so long. (It's not like they can't see in their records that the money isn't being paid.)
When employers take out NIB payments from their staff salaries and don't pay it to NIB, that's called stealing! But employers are allowed to get away with this sometimes for years without penalty. Why aren't these employers being held more accountable for stealing?
Then when those poor unsuspecting staff try to apply for benefits for some reason or another, they have issues and finally find out that their NIB wasn't being paid. There needs to be more accountability.
bogart 5 years, 5 months ago
Good point Tell accountablity...The NIB has taken Employers to legal action and has arrangements to pay. Prudent to continuous have such Collections program in place cause inevitable Employers hav challenges. Before publictly announcing collecting should announce what is done ... with INVESTING .where is existing NIB funds...
Another CRUCIAL part is stewardship of dese funds by NIB HEAD ....AND DIRECTORS OF THE NIB BOARD.....what is being done wid these NIB funds ???????.....and to publictly in press detail where are all dese NIB FUNDS INVESTED and returns of these NIB INVESTED FUNDS....!!!!!!!!..
bogart 5 years, 5 months ago
Todays headline..."Employers Warned over $17m Nib debt"
Tribune article September5, 2016. "Nib Takes $10m Bob, Cable Hit" Neil Hartnell......... Tribune article Thursday February1, 2018. "NIB viability threat expands by $13.4m 'deficit' on..." by Neil Hartnell......... Tribune article Wednesday September 9, 2015 "Bob Losses Slash Nib Income 66%"........ Sooooooo.....dey wantin more NIB money contributions by law ....than likes seems losing ..????? Soooooooo.......who in NIB......HAS BEEN NAMED ......fot losing it...?????
BMW 5 years, 5 months ago
Stop the damned talking and get into action! You know who they are, just deal with it.
Dawes 5 years, 5 months ago
Fully agree. All we hear is someone is not paying what is owed and the Government will go after them,. Then a couple of years later the same thing. Name and shame these companies and then make them pay.
screwedbahamian 5 years, 5 months ago
NIB will only survive and be a benefit to the Bahamian people ( for which reason the programme was implemented) is if an established successful pension management firm is put in charged of investing and managing the peoples pension funds ,theses funds are from employers and employees and not from the government. NIB should open webshops Casino"s or a National Lottery to benefit and provide a stable and sustained pension for the Bahamian people. One of many Bahamians screwed by the NIB.
ConchFretter 5 years, 5 months ago
Even if you collect all owed from large employers and self-employed, that brings revenue up from $283M to $300M (283 + 17). With expenditure at $292, that's a surplus of $8M.
You cannot generate a viable pension plan to provide for folks in retirement when you only have 3% of the revenue (8/300) to invest for future gains.
observer2 5 years, 5 months ago
ConchFretta, maybe it’s because government is treating National Insurance as a business and not a social program. Notice they call Contributions, Revenue and Benefits are called Expenditures, and there is Profit, not a surplus.
True financial illiteracy.
There is no breakout of administrative expenses which are a whopping 20% of each Revenue...opps, I mean Contribution.
No wonder the program is broke.
Well_mudda_take_sic 5 years, 5 months ago
Spot on!
The teacher should move you to the front of the class and give you a big juicy red apple to boot. The National Insurance Fund has for all intents and purposes been technically bankrupt for quite awhile now. Since its inception it has been used as a piggy bank to be raided at will by one corrupt government after another, whether PLP or FNM. Employers and employees contributing funds to the National Insurance Fund today need to have their head examined - they're literally thowing their money away! It's nothing but a Ponzi scheme nearing its inevitable crashing demise.
John 5 years, 5 months ago
The true situation is Bahamian businesses will always be obligated to pay their employees NIB. The problem is the foreign companies that evade these payments. Then they close shop and skip town or reorganize or 'sell' the company to avoid the taxes. So the burden falls back on Bahamians who are not covered or see their other taxes increase to make up the loss.
birdiestrachan 5 years, 5 months ago
This FNM Government changed the law so that it was no longer necessary to have the National Insurance payment up to date to renew the business License..
Then they put on a show for the peoples time voters as if they care.
sheeprunner12 5 years, 5 months ago
How much does the Government owe NIB????? ......... Did Brensil quote that?????
bogart 5 years, 5 months ago
....hmmmmmm......from years ago from report privy ...NIB having bondsshares one or both or not, in and or shares in...Bahamas Bridge....Bahamas Mortgage Corp., ...Bahamas Development Bank....Bahamas Electricity Corp.,.....Bank of the Bahamas,...Securities 2 on BISX....others...?????......Seems erry Gubmint entities keeps having taxpayers monies been redirected by subjections into these same bond issuing entities....propping them entities up repeatedly....
The_Oracle 5 years, 5 months ago
Being enrolled since its inception I have never been under any illusion that I would ever benefit from my contributions. In fact, my first employer was landlord for an NIB sub office, who also made no contributions on my behalf during my tenure with them. They did however deduct from my pay weekly! Over the years I have checked and found gaps in contributions on my behalf, luckily I was able to fill them in, and thus identify crooked employers. No, it will collapse, which will hurt the poor no matter which club of crooks they worship.
TalRussell 2 years, 7 months ago
June of 2019 the FNM Minister said, ... Faced with a serious shortfall, NIB wants to go after large employers and the self-employed who owe between $14 and $17 millions of dollars, .... Could Pintard now report on how much that sum actually was collected, ... and name the delinquents accounts and money and got was paid, .... along with who was the FNM's Bill Collector of Record,** ― Yes?
Sign in to comment
OpenID