The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

THE National Insurance Board paid roughly $940,000 in unemployment benefits last month, a 25 percent increase compared to its average payouts due to higher contribution rates and seasonal hotel closures.

Dr Tami Francis, deputy director of New Providence Operations and Actuarial Services at NIB, also revealed yesterday that some employers are still adjusting their systems and have continued to pay at the previous rate, opting to settle any outstanding funds later.

She said NIB had not received complaints about employers deducting excessive amounts while meeting contribution requirements.

She added that the 12th actuarial review of the NIB fund is underway, the goal of which is to determine if there are new recommendations and to assess whether officials have been able to push back the projected fund depletion date. 

NIB typically pays about $750,000 per month in unemployment rates. However, Dr Francis noted that several hotels are closed for the season, and the increase in NIB contribution rates since July has had a slight impact. She also noted that the biennial increase in the insurable wage ceiling took effect that month, also affecting payouts. 

She said about $750,000 in unemployment rates was paid in June and around $800,000 in May, while unemployment claimants in August were 862, 869 in July and 687 in June.

She said 14 hotels that closed for the season, some employing over 300 workers, were a major contributor to the rise in unemployment claims.

“I don’t want to single out any particular hotels, but keep in mind, you have your Four Seasons, and you have Ocean Club in San Sal,” she said. “You have Sandals in Exuma and Passerine Holdings, Abaco and Kamalame Cay in Andros and then there’s several more.”

She said while NIB is seeing a noticeable rise in the number and rate of unemployment claims, this does not capture the total number of unemployed people. The data reflects only those who choose to apply for benefits, and payments are made to those who qualify.

She said businesses have generally complied with NIB contribution requirements, though some remain delinquent.

“For the most part, and surprisingly, this has been pretty well digested by employers and employees alike,” she said. “Of course, there will be growing pains, and of course you will have a few persons here and there.”

“But overall, I think generally, employers and employees, they understand the need and the reason for the increase, and I think it’s going by pretty smoothly.”

Dr Francis said it is still too early to determine the impact of the increase on the NIB fund, which officials predict will be depleted by 2028.

However, she said officials have projected an additional monthly income of $4m.