Nassau Bahamas - Head of the National Insurance Board (NIB) Algernon Cargill yesterday asserted the fund saw a surplus of $54 million in 2008 ? the board now considering regular raises to its contribution ceiling.

The latter is just one in a long list of pending policy changes to the fund that will be undertaken to ensure NIB's viability. The fund's chief executive officer was quick to note that the surplus recorded acted as proof the fund was not going broke. In fact, he said running out of money wasn't a likely option in the future either, given new measures in place to secure its success.

"When you hear stories about National Insurance going broke, this refers to a scenario where the status quo remains," Cargill said yesterday. "Our current reserves stand at $1.6 billion [and] our 2008 surplus was $54 million.

"The fund is strong... rest assured that everything that must be done, will be done [and] in fact is already being done, to ensure that NIB will never go broke."

His comments come on the heels of an actuary report indicating the fund was indeed headed for financial trouble if serious changes were not made soon. It's a possibility Cargill said would not happen and points to efforts like NIB's crackdown on delinquent employers that have already started to bear fruit.

"Our 2009 year-to-date contributions exceed last year's results," he said. "It stands at $108.2 million compared to $105.6 million dollars at the same time last year. In our view, this is exceptional, given today's economic environment.

"A great challenge for our social security program is compliance. National Insurance contributions are a legislated obligation, yet many fail or refuse to comply."

And that's not all, said Cargill, with 25 more amendments to come to National Insurance.

Chief among them are regular increases to the wage ceiling depending on the economy, a move that can see the contributions spike based on the marketplace. It would apply, however, to Bahamians who make more than $400 a week, centered around the theory that those who make more should essentially pay more.

Added to that, the fund is also considering an increase in the number of contributions required for retirement and invalidity pension, Cargill said. It would mean a change from the current 150 contributions base qualification to 10 years of contributions.

To calculate pensions, the fund is also considering reviewing the last 10 years of contributions - as opposed to the present three working years - to settle on an amount.

"The extent to which you benefit," said Cargill, "will be determined by how seriously you take your obligations."

By Inderia Saunders, nassau guardian