Business

RF President: NIB Needs Better Focus

NASSAU, BAHAMAS – Royal Fidelity’s president weighing in on the pending NIB rate increase saying while the rate increase is necessary, there’s also a need for better management of NIB’s resources.

Published

1 year ago

March 15, 2024

Berthony McDermott

He says there’s no other option if the fund is to survive.

As NIB contributions are set to increase in July, Royal Fidelity Holdings Limited President Michael Anderson says there isn’t a real alternative to keep the find afloat.

However, Anderson said NIB needs a more focused management.

Since its inception, there has only been one nib rate increase. In 2010 the rate increased from 8.8% to 9.8%

The 11th Actuarial Valuation said NIB would have to increase its contribution rate by two percent in July 2022 and continue to increase every two years until 2036 to ensure its financial sustainability.

Last week, NIB Minister Alfred Sears announced a 1.5% increase, adding the contribution will increase every two years until 2044. Hours later, the Office of Prime Minister said nothing had been decided beyond the initial increase this coming July.

The official opposition expressed concern over the impact this could have on low-income households.

Speaking on the sidelines of the RF Economic Outlook, Anderson admits it’s not an easy decision to make