NIS Justifies Proposals for Sustaining its Insurance Fund

Contact: Dana Augustin

Thursday, July 06, 2000 – At a press conference on Thursday July 6, 2000 National Insurance Scheme (N.I.S.) officials indicated that the recent controversy relating to the proposed changes to the N.I.S regulations released in January last year, is actually a case of misunderstanding.

N.I.S, after having had the island’s national statistics and demographics reviewed by the International Labour Organization (I.L.O), implemented recommendations geared at sustaining the National Insurance Scheme fund for future generations.  Sustainable funds depend upon factors such as life expectancy, infant mortality and fertility rates.  When reviewed by the N.I.S Statistics Department, the island’s life expectancy rates were observed to have increased, while the infant mortality and fertility rates decreased.  This, officials said, could impact on the number of contributors to the N.I.S and the amount of funds that the insurance scheme receives.

Against this backdrop, major changes to be implemented after public consultation on the matter last year, include an increase in the pensionable age from 60 to 65 years, a reduction in the surcharge rate from 10% to 1. 25% per month, an increase in the wage ceiling from $3,000.00 to $5,000.00 monthly and the introduction of a modified pension to facilitate the retirement of persons 60 years of age, who have met the minimum contribution period.

 N.I.S Director, Emma Hippolyte assured the public that regardless of these changes, the present contribution rate at 5% for both employers and employees has not increased.  With regard to the increase in the pensionable age Miss Hippolyte said that it will not be implemented immediately, but will be carried out over a fifteen-year period. 

Saint Lucia’s rate of 40%, given to persons who have contributed to the N.I.S after a 10-year period is described as too generous, surpassing that of some Caribbean and international countries, which under similar principles have pensionable rates from as low as 25% to 30% in some instances.

The company stresses that it is mandatory that all persons in the workforce pay their N.I.S contributions.  This responsibility is deemed necessary, especially for the younger population, who might not be  planning ahead for retirement presently, but whose contributions will be essentially required in the future.

-end-

[ Home ] [ Up ] [ Search for 2000 Press Releases ] [Site Help]

© 2001 Government Information Service. All rights reserved.

Read our privacy guidelines.