NIS backlog of data entry to be completed by yearend – Luncheon

THE Head of the Presidential Secretariat (HPS), Dr. Roger Luncheon, yesterday, disclosed that the backlog of some 15 million records to be entered into the database of the National Insurance Scheme (NIS) and verified will be completed by the end of 2014.

He made the announcement at his weekly press conference held at Office of the President, where he added that the task will be undertaken by the Scheme’s permanent staff, project staff and outsourced labour.
According to him, the matter is one of concern for the current Administration and Cabinet has committed to providing the necessary resources and assistance to the Scheme to ensure that the long-overdue task is completed.
The Government has consistently provided support to NIS and contributing employers and employees.
In the 2014 Budget, an allocation of $226M to NIS was made under the current policy and administration Budget of the Ministry of Finance and was approved by the National Assembly.
Subject Minister, Dr. Ashni Singh, explained that the $226M allocated comprised Government’s support for employers and employees who could not afford the one per cent increase in contributions to the NIS. That increase was put in place with effect from July 1, 2013 for persons whose insurable income was less than $50,000.
Dr. Singh made it clear that the money does not represent any kind of bailout for the Scheme, although he acknowledged the real challenges facing NIS.
However, he stressed the need for a “strong parliamentary consensus” to tackle those challenges.
He said, “We did go through a process, the actuarial review process, which has been completed…. we all want a strong, viable financial scheme…. there are various recommendations considered by Cabinet…. we will bring the whole menu of measures to Parliament to have the issue ventilated.
“…I will say that, on the matter of the NIS, Government remains open to consideration of a full menu of measures to address challenges to NIS…we are open to all stakeholders to identify options and ventilate those policy options.”
According to him, the challenges facing the NIS are well known, but the solutions are not immediately easy ones, since these include freezing benefits and increasing the pensionable age, among other responses.
The minister explained that a number of undertakings are being addressed, with the one per cent increase in contributions being the first step to ensuring the financial viability of the NIS.
“We have no difficulty (in) using the committee system of the National Assembly to pursue a solution,” he stressed.
Singh also assured the House that Government recognises the urgency to move forward with the recommendations of the actuaries to address the challenges facing NIS. “We are taking a number of other steps to address the NIS…. Our efforts include diversifying the investment portfolio of the NIS,” he said.
Last year, NIS received an allocation of $110M.

(By Vanessa Narine)

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