37 (Expressed in Trinidad and Tobago Dollars) NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017 (Expressed in Trinidad and Tobago Dollars) 1 Incorporation and principal activity The National Insurance Board of Trinidad and Tobago (NIBTT) was incorporated under the National Insurance Act No. 35 of 1971 (The National Insurance Act), as subsequently amended, and commenced operations in 1972. The principal activity of NIBTT is to carry out the requirements of The National Insurance Act in providing social security benefits to the insurable population of Trinidad and Tobago. The registered office is located at 2a Cipriani Boulevard, Port-of-Spain, Trinidad and Tobago. 2 Actuarial review Section 70 (1) of The National Insurance Act requires an Actuarial Review of the National Insurance System (NIS) at intervals not exceeding five years. The 9th Actuarial Review was conducted as at 30 June 2013 and was completed by École Nationale d’Administration Publique International (ENAP) on 30 June 2015. The main objectives of this review were to assess the long-term financial condition of the National Insurance Fund and recommend possible ways to improve contribution and benefit provisions. In general, contribution payments and benefit calculations are based on a system of wage classes. The contribution amount is paid by the employer and the employee in a proportion of two- thirds/one-third. Benefits are grouped into three funds: long-term benefits, short-term benefits and employment injury benefits. Each fund is credited with contribution income and investment income from which benefit expenditures and administrative expenses are met. The report was accepted by management and the Board of Directors and forwarded with management recommendations to the Minister of Finance and the Economy for his consideration in August 2015. Presently, the fund is meeting all of its obligations. The 10th Actuarial Review is carded to start in October 2017. 3 Legislative amendments During the period the following legislative amendments were proposed in line with recommendations of the ninth Actuarial Report: a. The increase in the maximum insurable earnings from $12,000 to $13,600, this increase is in the order of 13.3 percent and is intended to cover an additional $1,600 of insured income which is in line with the increase in the national wage; b. Maintenance of the minimum monthly retirement pension at its present level of $3,000, at least until the beginning of 2017; and c. Increase in the contribution rate by 13.2 percent. The increase in the contribution maximum earnings and the increase in the contribution rates were announced in the national budget to take effect from 4 July 2016. However, this amendment only took effect on 5 September 2016 due to legislative delays. NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS 30th June 2017