The private sector has been urged to be more vigilant when it comes to the handling of the funds at the National Insurance Scheme (NIS), especially in an effort to ensure the preservation of the National Insurance pension.
Rene Delmas, pension director of Fortress Fund Managers, made the passionate plea during the question and answer segment of the Making Cents Of Pensions forum which was put on by the Barbados Employers’ Confederation (BEC) last Tuesday at Hilton Barbados.
Stating that the funds “belonged” to workers and not the Government, Delmas argued that he did not believe it was being given the attention it “deserved” by the private sector.
“In essence, it needs more direct attention. We have to pull it back to gain more control. The NIS and its present arrangement is unsustainable; the fund is going to be depleted if nothing changes by the year 2050. Otherwise, we must go through another reform, higher contribution rates, higher retirement age. Soon we are going to have a retirement age of 90,” he lamented.
Addressing representatives of the BEC, he added: “What I am putting to you . . . . I think the BEC needs to look more closely and firmly at NIS and take political interference out from the NIS.”
In his response, Tony Walcott, executive director of the BEC, explained that the board of the NIS was made up of representatives from the Government, the BEC and the trade union movement.
As it related to the question of political interference, Walcott said: “The Minister [of Finance], in fact, may direct how the board functions but traditionally this has not been the case as far as I am aware. The board still acts relatively independent.
“I know over the past two years there have been a lot of comments about the perceived investment policies, but it is not for me to judge and I take your point and comment.” (MM)
