NASSAU, BAHAMAS — The Organization for Responsible Governance (ORG) says that the recent confusion surrounding the announcement of a phased strategy to increase the National Insurance Board's (NIB) contribution rate underscores the importance of clear communication and inclusive decision-making processes.

It urged a balanced approach to addressing NIB's financial sustainability. 

"The state of the National Insurance Board (NIB) raises important questions about the future of our social security system, and ORG acknowledges the government's efforts to address its financial sustainability. As an organization dedicated to promoting responsible governance and citizen engagement, the Organization for Responsible Governance (ORG) believes it is crucial to address these challenges with careful consideration for all stakeholders involved. As we move forward, we urge for a balanced approach that considers the impact on both businesses and low-income households," ORG stated.

"Any policy decisions must be carefully evaluated to minimize adverse effects on vulnerable populations while ensuring the long-term viability of NIB.  Transparent and consultative approaches are essential to building trust and fostering cooperation among stakeholders. It is imperative for the government to engage in meaningful dialogue with all relevant parties to address the challenges facing NIB. Pre-consultation is essential to gather diverse perspectives and ensure informed decision-making that reflects the needs and concerns of the Bahamian people."

Immigration and National Insurance Minister Alfred Sears revealed last week that effective the first Monday of July 2024, the contribution rate for NIB will be increased by 1.5 percent to be shared equally between the employer and the employee, and thereafter a 1.5 percent increase every two years from July 1, 2024 to July 1, 2044. Similarly, the same increase will be applied to self-employed persons and voluntarily insured persons.

The Office of the Prime Minister said in a subsequent statement, however, that no decision has been made beyond the initial 1.5 percent announced to commence on July 1, 2024.

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