Posted on

NIS ‘hole’

Shawn Cumberbatch

NIS ‘hole’

Social Share

The National Insurance Scheme (NIS) will struggle to pay benefits to Barbadians who lose their jobs within the next two years unless Government urgently injects cash into its Unemployment Fund.
That is the startling scenario facing the Freundel Stuart administration, which has received an actuarial recommendation to either increase contributions or transfer $50 million from the much healthier NIS Severance Fund to plug the financial hole.
But even if it takes such action, Derek Osborne, chief actuary at Bahamaian company Horizonow Consultants, is warning that given Barbados’ struggling economy a more long-term fix will be required.
Investigations revealed that Osborne made the recommendations in the 14th actuarial review of the National Insurance, Unemployment And Severance Funds which he completed in December 31 last year and submitted to the National Insurance Board (NIB).