Tuesday, April 23, 2024

Options proposed for NIS rescue plan


Share post:

An increase in the retirement age to between 68 and 72 years and a small hike in the contribution rate of half to one per cent are being recommended to help avert a crisis with the National Insurance Scheme (NIS).

These were put forward by actuary Derek Osborne to avoid the Scheme running out of funds in just over a decade.

Osborne, speaking to the media at the NIS headquarters on Culloden Road, St Michael yesterday, disclosed that other options included raising the first age at which old age pensions are payable anywhere from 62 to 65 years.

He pointed out that the maximum pension payable is now 60 per cent and can be reached after about 36 years of contributions. He suggested that the number of years required to reach 60 per cent be increased to 40 or 45 years. The maximum pension replacement rate could be looked at with the goal of reducing it from 50 per cent to 55 per cent, he added.  (CLM)


Please enter your comment!
Please enter your name here

Related articles

Death rates up

Barbados’ population is officially in decline as the number of people dying each year surpasses those being born. That...

CDB boss steps down with ‘immediate effect’

BRIDGETOWN – President of the Barbados-based Caribbean Development Bank (CDB), Dr Hyginus ‘Gene’ Leon, has resigned with “immediate...

St Michael man remanded on 14 charges

A 23-year-old St Michael man was remanded to Dodds Prison after appearing in court to answer 14 charges. Raheem...

Dust haze advisory remains in effect for Barbados

A large plume of is currently affecting the island, with concentrations expected to decrease from midweek. The Barbados Meteorological...