NIB Director Lennox McCartney, in an interview with The Bahama Journal on Monday, attributed the improvement to a number of factors, including an effort launched by the Board in targeting specific groups of employers who had not been in compliance with the NIB Act, and the public relations efforts of the Social Security Reform Commission.
“So far for 2005 we have seen an improvement in the payments, Mr. McCartney said. “We are collecting about $1 million per month more since January than over the previous year.
Last year, the Board collected about $126 million in contributions and expects to collect at least another $11 million in 2005.
NIB’s 2003 annual report indicated that while an estimated 78 percent of the contributions due for 2003 were collected, small businesses and the self-employed were the major sources of non-compliance.
At the time of the report’s release, Minister with responsibility for the NIB, Shane Gibson, told The Bahama Journal that NIB was losing about 20 percent in additional revenue because of this.
On Monday, the director said that inspectors have been working especially hard in recent months to determine whether contributions are being paid promptly and at the correct rate.
As part of their duties, inspectors must ensure that employers, employed persons, and self-employed persons are registered with NIB. They are also required to investigate
cases of non-compliance of the National Insurance Act, and cases of alleged fraud in connection with benefits and assistance.
“The inspectors are really the frontline workers who really go out in the field, Mr. McCartney explained. “They ensure that companies and businesses are registered, and paying their contributions and paying the correct amount.
NIB officials say that they want to improve further on the amount of collections by increasing the number of inspectors around the country.
According to Mr. McCartney, NIB will be placing additional inspectors on the islands of Abaco, Grand Bahama and New Providence.
On Monday, the Board advertised for five inspectors for the New Providence office, but Mr. McCartney said that may not necessarily mean that the numbers of inspectors at that office are increasing at this time as some of them may have resigned.
Improving collections is seen as a vital part of helping the Fund remain viable for generations of Bahamians to come.
Minister Gibson recently pointed to several new strategies for improving NIB’s compliance levels.
“Inspectors are being more vigilant, monitoring what’s happening out in the communities to ensure that they are better positioned to track all those small businesses who refuse to register with the National Insurance Board or who plead ignorance once you catch up with them, he told The Bahama Journal.
Meanwhile, the Social Security Reform Commission, chaired by Alfred Stewart, continues to craft suggestions for keeping the Fund afloat.
The Commission was established in October 2003 to analyse the recommendations of the seventh actuarial review of the National Insurance Fund and after broad consultation, recommend to the government means by which Bahamians can look forward to enhanced income security in old age from a financially sustainable National Insurance.
With the NIB Fund facing depletion by the year 2029 unless serious reforms are made, the Commission has recommended that between 10 percent and 40 percent of the Fund be invested outside the country.
Mr. Stewart has pointed out that $1.4 billion available for investments from any one entity is a very large sum of money.
The Commission has also recommended that the minimum number of contributions to the Fund needed to qualify for benefits be increased to 500 from 150.
The actuary has recommended that the amount of contributions be raised and the age of retirement be extended to prevent a drain on the Fund, which could result in it going bankrupt.
By Stephen Gay, Bahama Journal
