Mr. Deputy Speaker,
Honorable Members of the House of Assembly
I stand today to report on the performance, over the past six months, of two criticalinstitutions that play key roles in the fabric of our nation—the National Insurance Board (NIB)and the Department of Immigration. These institutions touch the lives of every Bahamian,permanent resident, investor, expatriate worker and tourist in The Bahamas. It is thereforeincumbent upon us to ensure their efficiency, integrity, and responsiveness to the needs of ourpeople.
NIB stands as the foundation of our social welfare system, providing critical support toBahamians in times of need. In fact, it would be true to say that if it were not for the NationalInsurance Board so many of our citizens would not have survived through Hurricane Dorian andCOVID-19. For example, between 2019 and 2021, the Government, through NIB, providedincome supplement and unemployment assistance to thousands of Bahamians totaling $120million and NIB itself paid out unemployment benefits, during this period, of $131.5 millionbetween 2019 and 2021.
However, we must also acknowledge that NIB faces challenges that require ourimmediate attention. According to NIB’s 11th Actuarial Report, facilitated by the InternationalLabour Organization (ILO), if drastic action is not taken the Fund will become insolvent by2028. NIB’s annual income (including contributions and investment earnings) is insufficient topay its expenditure (including benefits and administrative costs), especially in the Long Term(Pensions) Benefits Branch. These deficits existed since 2016, well before the severe contractionof the GDP caused by the pandemic in 2020.
The Actuarial Report recommended that an increase in the contribution rate for thePension Branch and the actuarial valuation clearly establishes that an increase in contribution isnecessary to make the Fund sustainable.
Mr. Deputy Speaker,
Honorable Members of the House of Assembly
I stand today to report on the performance, over the past six months, of two critical
institutions that play key roles in the fabric of our nation—the National Insurance Board (NIB)
and the Department of Immigration. These institutions touch the lives of every Bahamian,
permanent resident, investor, expatriate worker and tourist in The Bahamas. It is therefore
incumbent upon us to ensure their efficiency, integrity, and responsiveness to the needs of our
people.
NIB stands as the foundation of our social welfare system, providing critical support to
Bahamians in times of need. In fact, it would be true to say that if it were not for the National
Insurance Board so many of our citizens would not have survived through Hurricane Dorian and
COVID-19. For example, between 2019 and 2021, the Government, through NIB, provided
income supplement and unemployment assistance to thousands of Bahamians totaling $120
million and NIB itself paid out unemployment benefits, during this period, of $131.5 million
between 2019 and 2021.
However, we must also acknowledge that NIB faces challenges that require our
immediate attention. According to NIB’s 11th Actuarial Report, facilitated by the International
Labour Organization (ILO), if drastic action is not taken the Fund will become insolvent by
2028. NIB’s annual income (including contributions and investment earnings) is insufficient to
pay its expenditure (including benefits and administrative costs), especially in the Long Term
(Pensions) Benefits Branch. These deficits existed since 2016, well before the severe contraction
of the GDP caused by the pandemic in 2020.
The Actuarial Report recommended that an increase in the contribution rate for the
Pension Branch and the actuarial valuation clearly establishes that an increase in contribution is
necessary to make the Fund sustainable.
