NIB Fund Under “Extreme Pressure”

NASSAU, BAHAMAS – The latest actuarial review of the National Insurance Board has many contributors asking questions after it was forecast that if spending continues at its current rate, the fund could be depleted within the decade.

Increasing the retirement age, drastic cuts, and increased NIB rates are all potential measures on the table to get the National Insurance Board’s fund out of dangerous waters.

The National Insurance Board’s latest actuarial report reveals NIB would have to increase contribution rates by two percent in July, and continue increases every two years until 2036 – if it is to remain financially sustainable.

Prior to Tuesday’s Cabinet meeting State Minister Myles Laroda sharing how NIB finds itself in this financial position. He cites “red flags” from as far back as 2002. Also of note, some $250 million in unemployment benefits and assistance were paid out between COVID-19 and Hurricane Dorian claims.

Prime Minister Philip Davis was asked about the findings of that report on returning home Monday afternoon. His response is similar saying this is not groundbreaking news to the government.

The report in question takes into account NIB’s annual income – which comes from contributions and investment earnings. This is insufficient to pay the annual expenditures in a project between NIB and the International Labour Organization.

The State Minister reminds the public this report is a recommendation. Government will ultimately decide how much of the advice is implemented. If NIB continues at its current payout rate, the report forecasts that the reserves will be depleted by 2028.