By Sue-Ann Wayow
SEVERAL measures are being put in place to ensure boosting of the National Insurance Board (NIB) investments and that contributions are being paid in accordance with the law.
On Tuesday, during a Senate sitting, Finance Minister Colm Imbert listed the measures in response to questions posed to the minister.
Imbert said that to ensure that National Insurance System (NIS) contributions were paid, the NIB has established a Compliance Unit to oversee and manage the NI contributions, inclusive of robust mechanisms to assure that NIB contributions were submitted to the board.
The NIB has also advised the Ministry of Finance of Ministries/Departments/
“As such, in an effort to assist the NIBTT in its collection drive, the Budget Division of the Ministry of Finance is consulting with the MDAs to ensure that funds are made available to settle their outstanding NI liability,” he said.
The Ministry has also requested that the office of the Comptroller of Accounts undertake a ‘systems survey’ which includes, the provision of training to aid MDAs in ensuring proper processing and timely remittance of NI contributions, Imbert stated.
Referring to the measures to boost the fund, Imbert said by Legal Notice 132 dated September 17, 2018, the Government has increased the overseas investment limit from 20% to 30%, allowing an increase in foreign investments with a view to achieving more attractive returns on investments.
The minister said, “The Ministry of Finance is also reviewing the policy mix adopted by the NIBTT in relation to the management of the NI Fund as it relates to domestic and international investments. These measures have resulted in an exceptional investment portfolio return of 14.18% in 2021. This resulted in an increase in the net asset value of the National Insurance Fund by 7.43% or $2.13 billion to an overall total of $30.78 billion.”
The number of contributors in NIS during 2021 was recorded at 446, 116, increasing by 10.4 per cent from 404,197 in 2020, however, the number of beneficiaries only increased by 0.9 per cent from 204,613 to 206,569 in 2021, Imbert also stated.
Additionally, in accordance with Sections 3 and 24(1)(d) of the NI Act, Government has appointed representatives to the Board of Management and the Investment Committee of the NIBTT with qualifications and experience in accounting, finance and management, Imbert said.
About the discussion relating to the increase of retirement age from 60 to 65, Imbert said the Ministry of Finance recently commenced stakeholder consultations, with the National Union of Government and Federated Workers Union (NUGFW) in February and discussions with other trade union bodies will continue in the near future.
