Rolle: Government looking at recommendation to increase NIB contributions

Minister of National Insurance and Public Service Brensil Rolle said yesterday the National Insurance Board (NIB) may have to increase contributions as a result of the payouts required because of Hurricane Dorian and the COVID pandemic.

He noted that even before those events, it had been recommended that contributions be increased to maintain the fund.

“That recommendation has been made from 2015, I believe, and it’s been out there.” Rolle told reporters outside Cabinet.

“To be quite frank with you, neither the [Progressive Liberal Party] PLP nor the [Free National Movement] FNM has been bold enough to take that back to the public.

“And so, during this pandemic…Bahamians now realize the importance and value of NIB and they may be eager to contribute.”

Rolle continued, “We have got to also take into consideration that during Dorian and this pandemic, the resources and the funding to the board have been diminished.

“We’ve got to make a decision to make sure the board continues to be able to serve.

“That may mean consideration will be given to the recommendation that has been advanced to us many times by actuaries and others, who say, listen, this is what must take place.

“But that’s a conversation that, from my perspective, I’d like to get a conversation that’s national in scope.”

Rolle added, “But I urge you to use your great platform so that we can get their response. You know members of the public listen to you much more than me.”

The COVID pandemic, which saw the global travel industry come to a near halt, came on the heels of Hurricane Dorian. 

The resulting shutdown of resorts and other tourism-dependent businesses, combined with the closure of other nonessential businesses due to the emergency orders, saw unemployment rates soar to an estimated 40 percent in The Bahamas.

Last month, the Ministry of Finance revealed that $97.5 million had been paid out in unemployment benefit by NIB, with another $91.9 million paid out through the government-funded unemployment assistance program, which offers extended assistance for those still requiring it following the 13 weeks of NIB benefit.

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source https://thenassauguardian.com/rolle-government-looking-at-recommendation-to-increase-nib-contributions/