The National Insurance Board (NIB) has revealed that its contribution income is no longer sufficient to support its benefit payments, which has resulted in a deficit for the company.
Executive Director of the NIB, Niala Persad-Poliah, said the benefit expenditure has been growing because of the ageing population and people leading healthier lifestyles.
She said between the period 2017 to 2020, benefit expenditure grew from $4.7 billion to $5.3 billion. But, during the same period, contribution income hovered between $4.7 and $4.6 billion.
Mrs. Persad-Poliah said the trend is expected to continue into the future. While the fund is sustainable, she said urgent reform is needed.
Mrs. Persad-Poliah said another suggestion is to freeze the minimum pension until it becomes relevant. She revealed that NIB met with the Ministry of Finance on the matter.