NIB Chief: Contribution Will Likely Increase

NASSAU, BAHAMAS – Taxpayers may have to pay out more soon as an increase in NIB contributions is on the horizon.

National Insurance Board officials say benefit payouts are far outpacing contribution collections. Now the minister responsible says tough decisions have to be made.

Here’s Jasmin Brown.

The state minister, with responsibility for NIB, says the increase was one of the recommendations outlined in a new actuarial review of the NIB.

Laroda says the review estimated the nib fund could be depleted before the end of the decade.

In order to mitigate the depletion, Laroda says the review recommends a 1.5-2 percent increase in NIB contributions.

He says Cabinet is considering the increase, adding that he expects a rate increase in the next year.

This is not the first time talk of a rate increase has circulated in recent years.

In January 2021, then Minister of National Insurance and Public Service Brensil Rolle said NIB may have to increase contributions as a result of the payouts required because of hurricane Dorian and the COVID pandemic.

Days after Rolles’ comments, Deputy Prime Minister Chester Cooper, who was at that time to opposition shadow Minister for Finance, said a hike in contribution rates at the time, or to even suggest the notion is in play, is a terrible and reckless idea.

Fifteen months later, Laroda says the problem has become too big to ignore.