Tue | Oct 17, 2017

Gov't wants more frequent actuarial audits of NIS

Published:Wednesday | January 13, 2016 | 6:11 PM

The Cabinet has given approval for the law to be changed to allow for actuarial reviews of the National Insurance Scheme every three years instead of every five years.

A Bill entitled The National Insurance (Amendment) Act 2016 which will effect the change is to be tabled in the Parliament.

The Cabinet notes that more frequent actuarial reviews of the NIS will ensure the long-term sustainability of the National Insurance Fund (NIF).

The NIS, a mandatory scheme funded by contributions from working Jamaicans, funds the NIF from which pensions and other benefits are paid.

The scheme provides money to contributors and their families in the event of loss of income arising from injury on job, incapacity, retirement, and death.

Yesterday, a report of the Auditor General Pamela Munroe Ellis was tabled in the parliament.

The report suggested that the NIS is at risk of failing because of poor governance, which has contributed to the disbursement of billions of dollars in payments to ineligible people.

In her report, Munroe Ellis said for the five-year period, 2010-2015, the Labour and Social Security Ministry, which manages the NIS, paid $32.5 billion to the Post and Telecommunications Department to facilitate the encashment of pension cheques, without checking to see if the right people were getting the money. 

The report also said that the Labour and Social Security Ministry overpaid 152 pensioners by more than $10 million because of poor due diligence