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NIB increases contribution rates
Starting this year, contributions from employers, employees and self-employed persons to the National Insurance Board (NIB) will be incrementally increased over a three-year period.
On Friday, January 21, the NIB made the announcement saying that the increase was part of the recommendations coming out of its ninth actuarial review conducted in July 2019.
These legislative amendments were presented to the Cabinet and subsequently approved.
The report, which followed that review noted that the NIB’s current contribution rates, have remained unchanged from its inception in
– says its needed for Fund to stay viable
April 1992, making it the second lowest in the region.
At the same time, there were numerous increases across all branches of benefits over the three decades, the report observed.
A statement from NIB outlining the reasons for the increase and other changes reads: “The main purpose of the Turks and Caicos Islands National Insurance Programme is to provide relevant social insurance protection through a wide range of benefits to the peoples of these islands, primarily our contributors and their dependents.
Along with the increase to the contribution rates, there were a number of other changes suggested by the report, namely to the retirement pension after age 65, retirement benefit accrual rate, amendment to invalidity pension, and increase in non-contributory old age pension (NCOAP) age.
CHANGES BEING MADE
Cabinet has approved the implementation of incremental increases in the current contribution rate of 8% over the next three years.
This takes effect from April 1, 2022, and will increase by 1% over the next two years.
There has been no change to the maximum ceiling of $4,000 per month, the Board has advised.
This year private sector employers and employees will pay a total of 10 percent, and in 2023 their rates will increase to 11 percent and in 2024 to 12 percent.
Contributions for public sector employers and employees will increase to a combined total of 9.15% this year, then to 10.5% in 2023 and then again in 2024 to 11.5%.
For self-employed persons, they will see their contributions increasing to 8%, 9% and 10%, respectively over the aforementioned three year period.
The NIB said the decision to increase the rate at this time is a thoroughly considered decision, and was not taken lightly.
But if they are to continue to provide benefits that are relevant, the fund must remain strong. They said the fund can only remain strong with the right level of inflows to cover its expenses.
Meanwhile, the Board said they are not increasing the retirement age from 65 years old, but they are offering an incentive to insured persons who choose to delay accessing their pension after age 65.
Accordingly, effective April 1, 2022, an insured person who retires from insurable employment after the age of sixty-five, and who was not in receipt of a Retirement Pension prior to that age, will be entitled to an increase in their Retirement Pension of a half percent per month for every month, up to a maximum of 30% that their pension is delayed. This starts from the date of their retirement.
There is also a change to the accrual rate for the Retirement Pension benefit for persons aged 49 and under, which kicks in on April 1, 2022.
This is increased in the following ways: “Twenty percent of the average weekly insurable earnings will be payable to an
New Covid-19 measures took effect on Monday Jan 24
BY OLIVIA ROSE
A LIST of new measures to blunt the spread of Covid-19 in the Turks and Caicos Islands kicked into effect on January 24, 2022.
As part of the measures to curb transmissions at the community level, only people who are fully vaccinated or have a negative Covid-19 test within 24 hours will be permitted to enter restaurants, bars, nightclubs, discotheques.
Speaking at a press conference on Thursday January 20, Minister of Health Hon. Jamell Robinson said these measures are being taken to mitigate against the threat of the Coronavirus (Covid-19) to the country as the territory has seen a spike in positive cases, in particular among residents (75% of cases), and increased hospitalizations both locally and overseas, coupled with six recent deaths.
To this end, Robinson said: “Cabinet Approved an extension of the existing Covid-19 measures and protocols, which will come into effect from 5am on Monday 24 January and remain in place until 28 February 2022.
“Entry to Churches or Religious Places of Worship be limited to 50% of their approved capacity only.
“Weddings and funerals are limited to 50% of their approved capacity only.
“Entry to restaurants, bars, nightclubs and discotheques will only be allowed by patrons, aged 16 or over, who are fully vaccinated or have proof of negative Covid-19 test within 24 hours”.
“Social gatherings will only be allowed for patrons, aged 16 or over, who are fully vaccinated or have proof of a negative Covid-19 test within 24 hours”, he added.
The Health Minister also encouraged residents to use E-certificates to enter establishments along with valid photo IDs.
He added that: “All businesses are responsible for verifying the required documents and must be able to present log books with the same for inspection by the Compliance Team.
An exemption is in place for unvaccinated minors below the age of 16 years from these requirements once accompanied by an adult.
While symptomatic patrons are being advised to remain at home unless they are going to get tested.
In keeping with the new measures, the Minister said Cabinet has also approved regulations for Arrival Passengers Travel Clearance, which will come into effect on5am on Friday 28 January and remain in place until 28 February 2022:
As such all visitors and unvaccinated residents, aged two years and above, returning to TCI must present a negative PCR/Antigen test within three days of travel and fully vaccinated residents returning to TCI are required to be tested within two days of arrival through TCIG testing sites at no cost.
He added that: “ Unvaccinated minors of fully vaccinated residents are recommended to be tested within two days of arrival.” insured person who has paid or to whom has been credited not less than five hundred contributions.
“This will be supplemented by a further 2% of the average weekly insurable earnings for each unit of fifty paid or credited contributions in excess of the first five hundred, up to a total of one thousand such contributions; or contribution years 11 to 20.
The NIB further advised that the qualifying conditions for the Retirement Pension for persons aged 50 years and older will remain unchanged, and they will receive a pension based on the current benefit formula.
Meanwhile, as to the invalidity pension NIB stated that the minimum contribution weeks to qualify for an Invalidity Pension will increase from 150 to 300 contributions, this too is effective from April 1, 2022.
A final amendment is an increase in non-contributory Old Age Pension (NCOAP).
The board says that the pensionable age for this benefit will increase from sixty-eight to seventy, effective April 1, 2022.
Members of the public are advised to contact the NIB if they require any further details as to these changes.
Contact information for the office in Grand Turk is 946-1048 and 941-5806 in Providenciales.
Under the tree By Benneth Williams
