#BTSpeakingOut – Sustaining the NIS

Disclaimer: The views and opinions expressed by the author(s) do not represent the official position of Barbados TODAY.

by Michael Ray

In relation to reform of the National Insurance Scheme, fellow letter writer John Goddard made two important and significant points,

1. “NIS funds should be invested to make sure that there is always money to pay pensioners.”

2.  “No government should be at liberty to dip into the scheme’s reserves to fund Government projects.”

These preceding two points must be a constant focus for each and every member of the NIS board. NIS funds will grow if they are sensibly and judiciously invested. NIS funds will be unnecessarily depleted if they are made available to finance government projects and programs. Priority agenda items to sustain the NIS should be:

• A review of the scheme’s investment portfolio, analyzing and noting historic trends related to returns on investments.

• Commission a search for the most sound and lucrative foreign investments available.

• Create legislation allowing NIS to invest a percentage of funds in its solely owned renewable energy company.

• Create legislation disallowing the use of NIS funds outside and beyond the Scheme’s core business.

• An increase of employer/employee contributions to the scheme.