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Recent News & Events

November 1st Actuarial changes

GOVERNANCE POLICY GUIDELINES

Investment Policy Statement - July 2010

2010 Annual Report

8th Actuarial Review

 

 

 

THE NATIONAL INSURANCE SCHEME

Press Release

 

In accordance with section 22 of the National Insurance law which provides for the National Insurance fund to be reviewed by an Actuary every three years, Mr. Derek Osbourne on assignment with the International Labour Organization conducted the seventh actuarial review of the NIS and made several recommendations.

 

The following recommendations were accepted by the National Insurance Board and Cabinet and the regulations were signed into law by the Minister of Social Security on December 1, 2006 and gazetted on December 8, 2006.

 

The following is a summary of the changes to National Insurance Regulations:

 

1.      Pension Increases

 

The annual rate of pension has been increased for all persons receiving pensions effective January 1, 2006 as follows:

         

(a)        -2 percent for all pensions first paid in calendar year, 2005; 

 

- 4 percent for all pensions first paid in calendar year, 2004;

 

-6 percent for all pensions first paid in calendar year, 2003;

 

- 8 percent for all pensions first paid in calendar year, 2002;

 

-10 percent for all pensions first paid in calendar year, 2001;

 

-12 percent for all pensions first paid in calendar year, 2000;

 

- 14 percent for all pensions first paid in calendar year, 1999;

 

- 16 percent for all pensions first paid before calendar year, 1999.

 

The above mentioned increases are applicable to all pensions including, Age Pension, Reduced Age Pension, Invalidity Pension, Death Benefit, Disablement Pension, Survivors Pension for  Spouse and  Children, Provident Fund Pension.

 

b. The minimum age pension, Invalidity, Survivor”s Spouse payable shall be $46.40 per week

 

c. The minimum survivor”s pension payable to a child shall be $9.90 per week or $19.90 if the child is an orphan

 

d. All Provident Fund Pensioners who previously received $30.00 per week will now receive a weekly pension of $33.60.

 

 The following are effective January 1, 2007:

 

1. Funeral Grants:

 

Funeral grants have been increased as follows:

 

•        Insured persons from $2000 to $2320

•        Spouse of the Insured from $1500 to $1740

•        Child of the Insured from $750 to $870

 

2. Maternity Grant

 

The maternity grant has been increased from $450 to $522

 

3. Self Employment

Effective January 1, 2007 it is mandatory for all Self-employed persons to register with the NIS and make National Insurance Contributions on a monthly basis.

Self-employed person can now qualify for all of the benefits received by workers including Sickness, Maternity and Employment Injury Benefit. Previously Self employed persons could only have qualified for Age, Invalidity and Survivors” benefits.

Self employed persons are required to pay on 9% of their insurable income instead of 6.75% previously paid.

 

 

 

 

4. Employment Injury benefit

 

Persons under the age of sixteen (children on holiday jobs) and over the age of sixty will now be covered under the employment injury benefit regulation.

Employers will therefore be required to pay 1% of those employees” insurable wages in contribution.

 

5. Entitlement of Widower

 

The qualifying condition for a survivor”s pension will be the same for men as it is for women.

Previously, for a man to qualify for a survivor”s pension he had to be an invalid and wholly maintained by his deceased wife while the same was not required for a widow. 

 

A widower who at the date of the death of his spouse was fifty years or older and had been married to her for not less than three years will be entitled to Survivors pension for life.

 

6. Pensioner can now also receive part of the survivor”s pension.

 

When a pensioner dies the surviving spouse who is in receipt or will be entitled to an age pension will receive the full Age pension and fifty (50%) of the survivors” pension.

Previously the person would only have received the larger of the two pensions.

 

7. Parent may receive survivor”s benefit

 

Parents may now qualify for a survivor”s benefit at the time of the death of an insured person. To qualify that parent must have been wholly or mainly maintained by the deceased person. Further, the spouse and children of the deceased should not have exhausted the maximum amount available.

 

8. Calculation of Pensions

 

Pensions will be calculated for person awarded a pension during 2007 using the four best contribution years of the person.

Pensions will be calculated for person awarded a pension during 2008 using the five best contribution years of the person.

 

 

9. Calculation of the Average weekly rate for Sickness benefit

The average weekly rate for purposes of calculating a sickness benefit will be the sum of the weekly insurable earnings for the thirteen week period immediately preceding the week when the incapacity began divided by the number of contribution weeks worked.

 

 

Director

National Insurance Scheme

January 1, 2007.

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