The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

PRIME Minister Phillip “Brave” Davis refused to reveal whether the government intends to increase National Insurance Board contribution rates.

Last week, Myles Lardoa, the State Minister responsible for NIB, told reporters the government will soon announce its decision on whether or not NIB contribution rates will be increased. However, a local daily reported that Cabinet had greenlit a rate increase which is believed to take effect on July 1.

While tight-lipped on the matter, Mr Davis repeated he does not intend to further burden society’s poor working class.

He said a rate increase is as an option for the government, however, they are aiming to identify the next course of action.

“As is my mandate, I continue to say that I’m going to try to resist putting more burden on our poor working class,” he told reporters on the sidelines of the commissioning ceremony of the Russell Island water supply project on Friday.

 “Yes, we have looked at the matter.

 He continued: “We understand that we have to do something, and we are trying to identify exactly what to do, and increasing the rate is one of the options that we are looking at.”

 The Tribune had previously reported about the dire straits of the fund over the years.

 On Thursday, press secretary Clint Watson was also unable to confirm reports of whether the government has approved an increase for NIB, however, he said the government was mindful of increasing costs facing Bahamians.

 “I can’t say much on the increase because it’s not been announced as yet from Cabinet other than what you would’ve heard the minister talking about – the fact that a decision has been made,” he said at the time.

 “We don’t know what decision has been made as far as what it will be. What I can tell you though is as far as all of these increases, the Cabinet is mindful of that and that’s why programmes and designs are being implemented to try and soften the blow upon the Bahamian people.”

 He continued: “But I cannot say whether or not there has been an agreed increase because it hasn’t come to my desk yet.”

 There have been ongoing discussions as to whether the government will decide to increase NIB contributions, especially in view of reports that the agency’s board had recommended that they should move quickly to affect the increase in time for January 1, 2023.

 Most recently, this newspaper exclusively reported in April that the 11th actuarial review of the National Insurance Board predicted the fund could be depleted by 2028.

 That report had reduced the fund’s potential depletion timeline by one year, as the 10th review had made a prediction of 2029.

 It also recommended NIB increase the contribution rate by two percent and continue increases every two years until 2036.