Recent News & Events
November 1st Actuarial changes
GOVERNANCE POLICY GUIDELINES
Investment Policy Statement - July 2010
Changes to the National Insurance Regulations that went into
effect November 1st, 2010.
BACKGROUND
NATIONAL
INSURANCE SCHEME
CHANGES TO THE NIS REGULATIONS
The National Insurance Laws require that an Actuarial Review of the National Insurance Fund be conducted once every three (3) years. The purpose of this Review is to assess the adequacy of the Fund to meet its future commitments. The Actuary would normally highlight areas of weaknesses observed and make recommendations to effect improvements to the Scheme so as to ensure the sustainability of the Fund.
The Eighth Review conducted was for the period ended December 31, 2006. The report was received in 2008. The following are the changes that were recommended by the Actuary, endorsed by the National Insurance Board and approved by Cabinet. These changes will take effect on November 1, 2010:
-
The maximum salary on which National Insurance contributions are
payable (Insurable Earnings Ceiling) has increased from $3,000
according to the schedule below.
|
Date of Change |
Monthly Ceiling |
Weekly Ceiling |
|
November 1, 2010 |
$3,500 |
$810 |
|
January 1, 2012 |
$4,250 |
$990 |
|
January 1, 2014 |
$5,000 |
$1,160 |
The last ceiling increase took place in 1998. A higher ceiling ensures
that NIS remains relevant for income earners in the higher salary range.
While the ceiling increase will provide some additional revenue to the
NIS, it will result in larger benefits and pensions for persons above
the ceiling.
Grenada has the lowest Insurable Earnings Ceiling in the OECS. The
Insurable Earnings Ceiling in the other countries are as follows:
|
Country |
Insurable Earnings Limit |
|
St. Vincent |
$4,333 |
|
St. Lucia |
$5,000 |
|
Dominica |
$6,000 |
|
St. Kitts |
$6,500 |
|
Anguilla |
$7,000 |
The increased ceiling does not affect persons earning $3,000 or less.
Only the persons earning above $3,000 will be required to contribute
more. Based on our data, less than 9% of persons currently contributing
to the NIS will be affected.
·
The minimum survivor’s pension has increased for a child from $9.90 to
$19.70 weekly.
-
The age to which children will receive a survivor's benefit, if
still in school, has increased from 18 years to 21 years. Children
between the ages of 18 years and 21 years who previously had their
pensions terminated should apply to have their pensions reinstated
once they are still in school.
-
On the death of a spouse, a person in receipt of an Invalidity
pension will now continue to receive the full Invalidity pension
along with 50% of the Survivor's pension. Previously, that person
would only have been entitled to the larger pension.
-
Maternity grant is now paid to mothers who have made 50
contributions at any time after being registered with the NIS. If
she does not have the 50 contributions required, but her husband
does, she would still be entitled to the grant.
-
The maternity grant will now be paid together with the maternity
allowance. Previously, the maternity grant was paid to the husband
only if the wife did not qualify for the maternity allowance. This
will provide qualified mothers with some financial assistance
following the birth of a child as well as allow inactive insured
persons to receive a maternity grant.
-
The duration of Employment Injury Benefit has increased from a
maximum of 26 weeks to a maximum of 52 weeks. After the expiration
of the first 26 weeks, an additional 26 weeks will now be payable
before a Disablement benefit may be awarded.
This change will prevent the payment of a Disablement pension
or grant to someone who has a good chance of making a full recovery.
Previously a determination on disablement had to be made after 26
weeks of incapacity.
-
Sunday is now considered in the three-day waiting period to qualify
for a Sickness and Employment Injury benefit. Previously, while
public holidays were included, Sundays were disregarded. For many
workers especially in the Hospitality Sector and Security Guards,
Sunday is a regular working day and they may have been disadvantaged
when claiming Sickness and Employment Injury benefits.
-
For the purpose of calculating Sickness and Employment Injury
benefits, the reference period for wages has changed to include 13
weeks ending on the last day of two months preceding the date the
illness began. When calculating Sickness benefits, wages paid
immediately preceding the date of the sickness were required. This
often resulted in delays as the wage information is often not yet
submitted by the employer.
Hence, an earlier reference period for wages has been implemented.
This administrative change will facilitate the faster processing of
claims as the wages pattern now required, will be more readily
available.