President says gov’t will not allow NIS to fail

TIMES INT'L

President Donald Ramotar on Friday reiterated that his government will not allow the National Insurance Scheme (NIS) to go into any kind of crisis, noting that media reports on the financial state of the scheme were sensationalised and overblown.
President Ramotar, during an interview with the National Communications Network (NCN) said, “What the report is actually saying is that if certain measures are not taken now, then in nine to 10 years time, it could then be in a crisis.” He said that government will work hard to ensure that people’s pensions are protected and will not allow the NIS to reach financial crisis.
Earlier Cabinet Secretary Dr Roger Luncheon and Finance Minister Dr Ashni Singh had both spoken on the state of the NIS, following media reports which cited an actuary report on the scheme’s financial state.
Dr Luncheon and Minister Singh both explained the meaning of the actuarial reports and noted that measures will be put in place to address potential problems before they occur.
According to the finance minister, a set of clear patterns have emerged from 2007 to 2011, with the overall state of the NIS, with regards to increases in payments of benefits as more persons live longer and recognise the value of the scheme. Steps are being taken to offset expenditures such as decreasing administrative costs and investing in high return businesses.
Consultations are planned as part of measures to be taken to ensure the NIS’s long-term viability and several policies will be instituted to assure its continuity without compromising the quality of service being offered.

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