National Insurance Enhancing the promise……. securing the future! 1 October 28, 2013.
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Transcript of National Insurance Enhancing the promise……. securing the future! 1 October 28, 2013.
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National Insurance
Enhancing
the promise…….
securing
the
future!
1
October 28, 2013
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Provide social security coverage, in the form of benefit payments to insured persons and their dependents, against specified contingencies
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Primary Mission
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Specified Contingencies:• Sickness• Death• Invalidity• Childbirth• Retirement • Death of the Breadwinner• Industrial injury (disablement and death)• Involuntary unemployment.
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Primary Mission
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Provide a minimum level of social security coverage for persons who do not qualify for such
benefits as of right.
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Secondary Mission
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Assist with the sustained, orderly socio-economic growth
and development of the country.
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Secondary Mission
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In order to fulfill the mandate, NIB collects contributions.
Contributions fund benefits and assistance.
Monies not paid out in benefits and assistance are invested to help grow the Fund.
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Social Security Protection
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All BahamasActive Insured persons: about 142,000. Contribution 2012: $203 million Benefit/Assistance pay-out: $199.8 millionReserve Fund: $1.65 billion
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Income/Expenditure – the 2012 experience
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All Bahamas in 201226,903 per month receiving LTB
Additional 5,077 receiving assistance – i.e., needy elderly invalids, widows, widowers and surviving children ($16.1 million)
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Income/Expenditure – the 2012 experience
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Contributions
Wage Ceiling Drives Benefits1974 - $1101985 - $2501999 - $4002011 - $5002012 - $600
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Automatic Wage Ceiling AdjustmentsEvery 2 years – starting in July 2014 – by the estimated wage increases over previous 2 years
Contributions – wage ceiling
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Contributions – wage ceiling
Ceiling on Insurable Wages since 1974Period Oct. 1974 Jan. 1985 Jan. 1999 Jan. 2011 July 2012
Weekly $110.00 $250.00 $400.00 $500.00 $600.00
Monthly 476.00 1,083.00 1,733.00 2,167.00 2,600.00
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Contributions – wage ceilings
• On $110: ‘EE (3.4%): $3.74/’ER (5.4%): $5.94 wk
• On $250: ‘EE (3.4%): $8.50/’ER (5.4%): $13.50 wk
• On $400: ‘EE (3.4%): $13.60 wk/’ER (5.4%): $21.60 wk
• On $400: ‘EE (3.9%): $15.60 wk/’ER (5.9%): $23.60 wk
• On $500: ‘EE (3.9%): $19.50 wk/’ER (5.9%): $29.50 wk
• On $600: ‘EE (3.9%): $23.40 wk/’ER (5.9%): $35.40 wk
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Contributions
Paid as a percentage of actual wages up to ceiling, however…..
Integration Clause
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Contributions
“…. Every employer is entitled to modify in such manner as may be prescribed, the rate of contributions and benefits payable under any pension scheme instituted by him for the benefit of his employees… for the purpose of eliminating overlapping benefits and contributions and for ensuring that the aggregate of the pension receivable under that scheme by an employee upon his retirement from the service of the employer or upon attainment of the prescribed rretirement age or by reason of his invalidity and the amount of the retirement or invalidity benefit receivable by the employee under this Act does not exceed the salary payable to him immediately prior to such retirement or invalidity.” (Sect. 22 (a))
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Contributions
2010 AmendmentsEffective July 1, 2013
All wages up to ceiling to be included in insurable wages for CSPs
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Contributions - CSP
Weekly Insurable Pensionable Wages Civil Servant Employer Total
(a) Up to $110 3.9%PLUS 5.9%PLUS 9.8%
Plus:
(b) In excess of $110 2.2% 3.05% 5.25% up to the ceiling
Previously
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Contributions - CSP
From July 1, 2013 Weekly Insurable Pensionable Wages Civil Servant Employer Total
Actual wages up to Insurable ceiling 3.9% 5.9% 9.8%
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Contributions - CSP
A Regular Employed Person at age 65:(after paying some 2,008 contr.)60% of $430 = $1,118.00 per month
CSP at age 65 years: 60% of $110 = $301.08 per month
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Contributions
Questions???
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For Further Information
Call: 325-4653 or 325-4655
Toll free from Family Islands242-300-1394
website: www.nib-bahamas.comor
Contact nearest NIB Local Office