By KHRISNA RUSSELL

Deputy Chief Reporter

krussell@tribunemedia.net

CRITICAL decisions will have to be made regarding the National Insurance Board and the administration of contributions it collects to ensure there remains longevity of the social security net’s benefits, according to a Cabinet minister yesterday.

Public Service and NIB Minister Brensil Rolle told reporters either every working person will have to pay more contributions into the safety net or benefits offered will be lessened to match the level of contribution made.

He further issued a warning to employers who deduct NIB contributions from workers but fail to pay them to the board, saying perpetrators will be “absolutely” aggressively pursued.

“What I do know though is that our benefits are outstripping our contributions and we’ve got to look at what we need to do to bring that balance back to NIB so that everyone could get the required social security services that’s needed from NIB,” Mr Rolle said yesterday outside of Cabinet.

His comments came when he was asked if he anticipated NIB to be operating at a deficit. He said he didn’t suspect this would be the case.

Earlier he said: “It’s always a challenge to balance your books but NIB is in a process now where we are trying to look at our assets (and) make a judgement on what assets we need to sell. But at the same time, we are constantly looking at opportunities to empower the organisation and to go into areas that will assist social security development in the Bahamas.”

In an article recently published in the Wall Street Journal, trustees said by 2035 US Social Security will no longer be able to pay its full scheduled benefits unless Congress steps in to shore up the programme.

Asked if the Bahamas was to face a similar predicament, Mr Rolle said: “Absolutely. I said it at the outset is that we are paying out more benefits than the contributions we are taking in so that’s going to require some intervention.

“We are looking at what those options are at NIB and we anticipate that the Bahamian public would be made aware very shortly.

“I think our actuarial would have suggested 10 years from now, I can’t remember specifically what the drop-dead date is, but again we are not a money making institute, we collect contributions from you to pay out benefits to you and that’s all we do.”

He added: “I don’t know that we will ever run out of funding. What I do know is if our contributions are not being equal to our benefits only two things can happen, either we can ask you to increase your contributions so that we can pay your benefits or we have to decrease your benefits to become equal to your contributions,” he explained.

“I am saying this is where our actuarial is saying this is where the rubber is really going to reach the road. We are going to have to make some critical decisions before that to keep the funds vibrant and keep our social security network intact.”

Regarding employers who fail to pay contributions, Mr Rolle said: “That is so unfair and unacceptable. It is perhaps bordering on criminal. If I take your monies from you to make a contribution to your social security network and you get sick and suddenly find out listen my contributions are not paid, then that’s an issue.

“What we say to every single employee though is there is a means by which you can go to NIB and go online to see whether your contributions are being paid. So don’t wait for NIB. Just go there and find out what do I need to do to ensure that my contributions that has been taken from me on a weekly basis is contributed to NIB and you keep your own record and you can’t go wrong.”

Non-payment of employee NIB contributions is an offence under the National Insurance Board Act, liable to a minimum of six months in prison or a fine of $1,000, or both, to a maximum of 12 months in prison, or a fine of $2,500, or both.

Last June, Mr Rolle warned that NIB contributions could possibly increase in the future.

At the time, he was asked about the financial stability of NIB after Health Minister Dr Duane Sands said it was on the brink of bankruptcy.

Dr Sands highlighted the debts owed to NIB as he defended the government’s decision to increase the VAT rate from 7.5 percent to 12 percent.

Mr Rolle also told reporters yesterday that the government has plans to hire 200 Bahamians with degrees to work in the public service sector, but on contract.

He further commented on the government’s position on accrued vacation time.

“We are just asking individuals to take their vacation because the government has a policy position, which is we don’t pay for vacation. You take your vacation or alternatively you may forfeit your vacation.”

He said he was unsure of how many public sector workers had been asked to take vacation, but the government decided it was stepping away from the practice of paying workers for vacation they did not take prior to retirement.