Actuarial Reviews

It is prudent to invest wisely and to have Actuarial Reviews conducted regularly to ensure a proper balance between contributions and expenditure.

These reviews take into account the increasing levels of wages of the insured population, as well as the relevance of the levels of benefits paid. The benefits paid are a percentage of assumed average earnings in the sixteen (16) contribution classes.

The Class groupings recognise that employees work for different levels of wages and should be expected to contribute and earn benefits according to their accustomed levels of living.

The National Insurance legislation was amended in 1999 to give effect to increases in benefits and contributions. Additional changes to the National Insurance System took place on March 01, 2004 when a change was effected to the contribution rate from 8.4% to 9.9% in steps from January of each year from 2004 to 2006 of assumed average earnings in the then twelve classes up to an income ceiling of TT$4377.00 monthly. At the same time, significant improvements were made to the level of benefits received by insured persons and their beneficiaries.

The National Insurance Legislation was further amended in 2008 after the conduct of the 7th Actuarial Review.

The key changes are (among other things)

• the increase in the minimum monthly retirement pension from $1,000.00 to $2,000.00 and
• the implementation of a slow and gradual increase in the contribution rate over a five (5) year period as shown in Table 1.
  
   

(25% increase in all benefits rates)

The proposed improvements would serve to:

• Ensure that benefits continue to be relevant to the insured population and its dependents by maintaining the economic relevance of benefits
• Secure a basic standard of living for NIS pensioners given the income needed to escape poverty
• Recognize the importance of the role of the unemployed mother or irregularly employed mother and to ensure that all children are treated equally to the extent possible
• Recognize that multiple births result in increased medical expenditures and that the parent/s) therefore requires increased financial support
• Ensure that injured workers have access to the best relevant medical technology available for recovery
• Recognize the increased costs associated with health care and medical expenses

  Recognize the increased costs associated with funerals.