By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

MORE than $1.7m in outstanding contributions has been clawed back from employers in Abaco and Eleuthera since the start of the year, as the National Insurance Board (NIB) ramps up its nationwide campaign to crack down on non-compliance and strengthen its revenue collection efforts.

The ongoing initiative, which forms part of a wider interagency enforcement strategy, targets employers who have failed to register, submit wage records, or make required payments to the fund. According to National Insurance Minister Alfred Sears, $1.275m was collected from employers in Abaco between January and April 2025, while $493,332.72 was recovered during the first phase of operations in Eleuthera from May 5 to 10.

In Abaco, the operations were executed in three phases. Phase one, held from February 17 to 22, resulted in the recovery of $600,322.92 from 11 employers who failed to submit contribution forms or employee wage records, 21 who failed to register with NIB, and two who failed to pay their contributions. 

Phase two, conducted from March 10 to 14, recovered $555,159.36 from 30 non-compliant employers, two unregistered employers, and two that had failed to make payments. Phase three, which took place from April 7 to 11, brought in $120,329.35 from 25 employers who had not submitted records, three unregistered businesses, and one employer who had failed to pay.

In Eleuthera, nine employers had failed to register, 22 had not presented wage records or contribution forms, and an undisclosed number had failed to make payments. Mr Sears explained that the operations in both islands are part of a broader interagency initiative through the Revenue Fortification Task Force, which includes the Ministry of Finance, NIB, the Royal Bahamas Police Force, Immigration, Customs, the Defence Force, and the Port Department. 

“This multi-agency collaboration is about more than money—it’s about accountability, sustainability, and protecting the dignity of Bahamian workers,” Mr Sears said. “This partnership is not only a financial success, but also a policy success, showcasing the importance of aligned mutual agreements.”

Delivering his 2025/2026 Budget Communication in Parliament yesterday, Mr Sears reaffirmed the government’s commitment to ensuring the long-term sustainability of the National Insurance Fund. He noted that the contribution rate increase of 1.5 percent, implemented on July 1, 2024, is now generating an additional $4m in revenue each month. Still, the Fund faces a projected deficit of $32m for 2025. 

“More than half of that deficit, approximately $16.85m, is due to a structural imbalance between what we collect and what we pay out,” Mr Sears said. “We are working to close that gap through stronger enforcement, targeted audits, and improved employer engagement.”

Between January and May 2025, NIB paid out $156.3m in long-term benefits—including retirement, invalidity, survivors, and assistance—compared to $141.1m during the same period last year. Short-term benefits, which include sickness, maternity, funeral, injury, and unemployment, rose from $17.3m to $19.1m.

Mr Sears revealed that nearly 51,000 Bahamians are now receiving monthly pensions, with the average retirement pension standing at $711. Contributory pensions — benefits earned through regular National Insurance contributions by workers and their employers — accounted for $150.2m. Non-contributory pensions, which are assistance payments provided to elderly, invalid, or survivor claimants who did not meet the minimum contribution requirements, totalled $6.1m.

“NIB remains dedicated to supporting its more than 51,000 pensioners by ensuring the timely and consistent payment of pensions, amounting to more than $28m per month,” he said.

Mr Sears also announced that a new Compliance Performance and Recovery initiative will be fully launched by the end of June 2025. Monthly field operations will target “red zones” in Eastern, Western, and Central New Providence, where compliance levels have historically been low. Teams of redeployed inspectors will carry out business inspections, recover outstanding contributions, and register unreported businesses. 

“NIB is coming to you,” Mr Sears said. “This is not a one-time sweep—it is a sustained national effort, and similar operations will continue across The Bahamas for the remainder of the year.”