There has been interest from vendors to provide the National Insurance Board (NIB) with automated teller machines or cash machines to ease the burden of payment distribution by the board, Minister of State in the Office of the Prime Minister Myles LaRoda, who has responsibility for NIB, said yesterday.

When asked if NIB is considering using technology to shrink its oversized workforce, therefore saving the cash-strapped fund money, he suggested that the cash machines are one consideration. However, he defended the size of NIB and the continued need for all its employees, contending that because there needs to be representation on all islands, the fund continues to need bodies and buildings.

"The National Insurance Board has not turned a profit from 2016. And so what they were living off was investments and cash that was on hand, and we know that's not sustainable, in particular when you're running deficits of close to $100 million," said LaRoda.

"As we talk about right-sizing, there have been in the media reports of the administrative costs and I remind the public again that we have some 15 or 16 islands of The Bahamas with a decent population. And I use that tongue in cheek because some islands are relatively small.

"Yet, that doesn't mean that those islands with small populations should not have access to the National Insurance Board. And so you're talking about administrative costs. You're talking about the offices on those islands, some of them paying rent.

"You have to buy equipment, you have to pay staff. There are union agreements. And so we cannot act as if this is an agency that's just represented in Nassau."

At the height of the pandemic, NIB used technology to distribute payments to those in need of financial assistance, and the government at the time took myriad services online.

Many have contended that along with the need for an increased NIB contribution by working people, there needs to be a streamlining of NIB in an attempt to improve the fund's bottom line.

There are some that argue that there would be no need for a rate increase if NIB was better managed and the operation improved, including decreasing the size of its labor force.

Government intends to increase the NIB contribution rate next year.

LaRoda said he will speak to the particulars of the increase during his contribution to the 2023/2024 budget debate in the House of Assembly next week.

He said the government decided to delay the increase to allow the business community time to digest the idea

"We wanted to roll it out in July, and that way the employees in particular, would have enough time. And so the public would also be aware of what the increase means, because it's going to be more than one, and where their money is going," said LaRoda.

"So there's going to be an information campaign by NIB to inform the public of what the the goal of the board is moving forward... not just increasing the contribution rate, but also what other services will be provided by the National Insurance Board."

The post Interest from vendors to provide NIB with ATMs, says LaRoda appeared first on The Nassau Guardian.

The post Interest from vendors to provide NIB with ATMs, says LaRoda appeared first on The Nassau Guardian.

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