RECENT speculation and claims by opposition mouthpieces and media houses that the National Insurance Scheme (NIS) is a sinking ship are “total nonsense”, according to Head of the Presidential Secretariat and Cabinet Secretary Dr. Roger Luncheon.

However, Luncheon noted that there is evidence that recommendations brought forth by the Seventh Actuarial review of the NIS need to be acted on.
Responding to recent headlines about the viability of the NIS, Dr Luncheon, who is also Chairman of the NIS Board, noted that the report mirrors recommendations made in a statement issued by an NIS Reform Committee in 2008.
The board was “rather selective with regard to recommendations it endorsed and implemented,” Dr Luncheon stated.
It was noted that some recommendations were entertained, whilst some were not. The HPS conceded that the findings suggest that the decision with regard to specific recommendations should have been given greater attention at that point in time, but these challenges will be addressed.
Meanwhile, Finance Minister Dr Ashni Singh said that NIS will never be allowed to fail under the ruling administration. He noted that the NIS’s evolution from 2007 to 2011, alone has shown a clear set of patterns that is: benefits payments have increased as more persons are healthier and living longer, hence more contributors are collecting pensions for longer time periods.
Dr Singh acknowledged that income from contributions have not grown to match the expenditure for payments and this will be addressed in innovative ways.