The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net

A GOVERNANCE reformer said yesterday the proposed National Insurance Board rate increase should include consultations in citizens’ interest, adding more transparency should be given to those who will be affected.

“NIB is one that is going to potentially touch everybody. We all got to pay into it, and everybody hopefully gets to be able to benefit from it,” Organization for Responsible Governance Executive Director Matt Aubry said yesterday

“So it’s a critical thing that we all will be brought into. It has nothing to do with one side of a political party or another. It has everything to do with what citizens’ interests are,” he added.

Mr Aubry was contacted by The Tribune for comment about the ongoing debate on whether the government will introduce a NIB rate increase.

Mr Aubry noted The Bahamas is not the only country that has faced similar challenges with social security, but said it would be beneficial to give citizens the opportunity to offer their input.

“Social support systems like NIB, the struggles are not just happening here, they are happening across the world. It’s going to need to encompass levels of consultation, like the citizens need to be brought into what are the potential opportunities? What are the strategies that are being considered?”

He added: “I think whatever comes from that, if the citizenry has the opportunity to understand and have their say, and their input in the formative stages of planning, you get potentially better compliance, better understanding, and better buy in.”

During the interview, Mr Aubry explained that for many, NIB is essential such as to senior citizens, those who suffered work injuries, or anyone who has contributed over the years.

He stressed going forward there should be more transparency with the public over proposed increases, adding it will create less anxiety and more understanding moving forward.

“This is a great opportunity to start to show and demonstrate what will be the standard that’s going to be in place. To ensure that any increases are being put to the best possible use, and that people would understand that this is not something that is a risk, but it is a well-researched, understood, and consulted plan.”

Last week, Myles LaRoda, minister of state with responsibility for the National Insurance Board (NIB), warned that if there is no raise in the contribution rate this year the National Insurance fund will lose $95m.

On February 8, Mr Laroda also revealed that the government will soon announce its decision on whether NIB contribution rates will increase or not. However, The Nassau Guardian reported that Cabinet had greenlit a rate increase which is believed to take effect on July 1.

Meanwhile, Prime Minister Phillip “Brave” Davis has insisted that the government has not finalised a decision, deeming it a last resort to place an additional financial burden on society’s poor working class.

The Tribune also exclusively reported in April 2022 that an actuarial review of the National Insurance Board predicted that the fund could be depleted by 2028 should officials neglect to take urgent action.