By LYNAIRE MUNNINGS 

Tribune Staff Reporter 

lmunnings@tribunemedia.net

THE National Insurance Board took 300 people to court for failing to pay NIB contributions last year –– a 12 per cent increase over 2022 –– and expects its deficit to drop by 61 per cent once contribution rates increase in July.

NIB projected a $98m deficit last year, with Myles Laroda, the former minister responsible for NIB, saying benefits alone were expected to exceed contribution income by about $86m.

Tami Francis, NIB’s deputy director, said yesterday that if NIB rates do not go up this year, the deficit would be around $65m.

“However, with the upcoming increase for July 1st, our deficit will be reduced to about $38m, so that’s a $27m reduction,” she said.

“So, you can see the contribution rate increase is something that is very necessary and we are on our way towards sustainability of the fund.” 

Consecutive actuarial reports have indicated that the NIB contribution rate should be increased to prevent the reserve from being depleted before 2028.

Reports show how the country’s changing demographics –– an ageing population and declining birth rate –– widen the gap between benefit payouts and contributions.

In July, the increased rate of 1.5 per cent will be shared equally between employers and employees. The employers’ rate will increase from 5.9 per cent to 6.65 per cent. 

NIB director Heather Maynard said about 300 people, including self-employed people, were placed before the courts last year for non-payment of contributions or failure to produce records.

“There are several offences. The main offence is failure to pay,” she said. “There is also an offence called failure to produce records, and usually, when persons are summonsed to appear in court, they pay their obligation. If they cannot pay the obligation in full at that time, they will enter an instalment agreement and pay off their arrears.” 

She said the NIB aims to modernise the administrative processes through an online card renewal portal, employer self-service for monthly compliance obligations, a mobile app rollout, a claims portal, and a revamped website.