National

FNM Leader Slams Govt. Readiness For NIB Rate Hike

NASSAU, BAHAMAS – In less than two weeks, National Insurance Board contributions will rise by 1.5%. The government argues the increase is necessary to salvage a rapidly depleting fund.

Published

1 year ago

June 21, 2024

Berthony McDermott

NASSAU, BAHAMAS – In less than two weeks, National Insurance Board contributions will rise by 1.5%. The government argues the increase is necessary to salvage a rapidly depleting fund. However, trade unions warn the hike will only add to the financial burden of Bahamians. Berthony McDermott, who is following this, tells us amidst the controversy, the official opposition is calling for a comprehensive public education campaign.

With the implementation of an NIB rate hike just weeks away, opposition Free National Movement leader Michael Pintard is criticizing what he says is a lack of preparation. In May, NIB Minister Alfred Sears announced a 1.5% increase effective July 1st as part of the Davis administration’s plan to save the social security fund from depletion.

A recent actuarial review recommended steps to secure the fund’s sustainability, including an increase in contributions. However, Pintard argues the government has yet to adequately address the public’s concerns and provide necessary education on the impact of this hike.

During the mid-year budget debate back in March, Sears revealed contributions would increase by 1.5% every two years for the next 20 years to save the depleting fund. But the Office of the Prime Minister quickly clarified the statement, saying no decision has been made beyond the impending increase.

Meanwhile, Pintard insists more needs to be done to prepare the public. Trade unions argue that the increase will further strain already struggling Bahamians, many of whom earn only minimum wage.

Pintard took his criticisms a step further, comparing the government’s approach to public education on the NIB increase to its inability to address questions related to BPL.