NIS operation and staff review approved by Cabinet
An operation and staff review of the National Insurance Scheme (NIS) is to be undertaken next financial year.
Information Minister, Ruel Reid, told journalists at this morning’s post-Cabinet press briefing that the Cabinet approved the review after discussions on the recommendations for the strengthening of the NIS.
Reid also disclosed that a review of the governance structure, investment policy and asset allocation strategy of the National Insurance Fund (NIF) will be undertaken next financial year.
NIS contributions are used to fund the NIF.
The information minister said the Cabinet has directed that all ministries, agencies and departments register and comply with the contribution requirements of the NIS by 2019-2020.
Both Houses of Parliament recently passed amendments to NIS Act which, among other things, increased the frequency of actuarial reviews of the scheme from five years to three.
The move is aimed at allowing the government to keep better track of the financial health of the NIS.
The last actuarial review in 2013 had raised concern that the NIS could face a financial crisis in a few years as it was paying out more money to beneficiaries than it was collecting in contributions.