Dionne Rose, Parliamentary Reporter

Senator Munroe

Government Senator Navel Clarke wants delinquent employers guilty of not turning over contributions made by employees to the National Insurance Scheme (NIS), only to be brought to book.

The trade unionist said that too many workers were still complaining about these acts, which he said were not confined to the NIS but also to other statutory deductions.

Mr. Clarke made the call for the law to be enforced while making his contribution in the Upper House on Friday on a resolution, which will see Funeral Grants being increased from $40,000 to $50,000.

"Statutory deductions as a whole, are used by some unscrupulous employers for their own purposes without remitting that to the Government and it is a serious crime," he said.

Senator Clarke said Section 44 of the NIS Act makes it a criminal offence for any employers who use the deductions in other ways than what it was intended for.

Delinquent employers

"I wonder and wonder aloud, whether any delinquent employers over the past years have been found and convicted to the extent to which the law requires," he said. "White collar crime of this sort has been very very rampant in Jamaica and we must at least put a stop to this," he said.

Meanwhile, Government Senator, Professor Trevor Munroe, has recommended that the Government move with alacrity to have the NIS operate in the same manner as private pension schemes.

"In relation to the NIS fund, I wish to re-affirm the recommendation and ask the Government to proceed with all due dispatch, to bring the NIS fund under the same regulatory framework as the private pension system," he said.

Senator Munroe argued that if this were done, it would require that an actuaries' evaluation would be done of the fund, which would outline its capacity and as a result, there would be no speculation when proposals are made to make investments from the fund.

The increases of the grants will take effect on January 1. Funeral Grants are payable on the deaths of NIS pensioners or their dependant spouses. Since the start of this year, some 4,333 claims were made for Funeral Grants.

dionne.rose@gleanerjm.com