Thu | Aug 17, 2017

Gov't proposing more frequent actuarial audits of NIS

Published:Wednesday | July 20, 2016 | 7:59 PM
Last month, Labour and Social Security Minister Shahine Robinson indicated that the most recent actuarial report shows that the NIS will run out of money by 2033.

The government is moving to increase the frequency with which actuarial audits of the National Insurance Scheme (NIS) are carried out.

The Cabinet has given approval for amendments to the National Insurance Act to allow for audits to be conducted every three years instead of the current five-year cycle.

The bill, the National Insurance (Amendment) Act, 2016, is to be tabled in the Parliament to give effect to the change.

Last month, Labour and Social Security Minister Shahine Robinson indicated that the most recent actuarial report shows that the NIS will run out of money by 2033.

As a result, Robinson said a reform committee would be set up to examine the recommendations of the report and to explore ways to improve the financial position of the NIS.

The NIS is a mandatory scheme which is funded by contributions from all working Jamaicans.

It provides a range of retirement and employment benefits to Jamaicans.

NIS contributions are used to fund the National Insurance Fund, from which pensions and other benefits are paid.

The labour and social security minister disclosed that during the 2015/2016 financial year, more than 109,000 persons received benefits from the NIS totalling over $15.4 billion.