-Singh

Although the National Insurance Scheme (NIS) projects increased expenditure over the next three years, according to Finance Minister Dr. Ashni Singh it will meet the cost while remaining viable.

This information was provided by Singh in writing to the National Assembly, following questions posed by PNCR MP Mervyn Williams.

Williams queried the expenditure projections for the period January 1, 2010 to December 31, 2012, in the areas of Sickness Benefit Medical Care and Injury Benefit Medical Care. According to Singh, the Sickness and Injury Medical Care Benefit for 2010 is budgeted at a total of $568,962,000, while for 2011 the figure is $669,791,000 and for 2012 it is $690,449,000. Singh, responding to how the NIS would meet the costs in the short, medium and long term while remaining viable, explained that according to the Actuarial Review of the National Insurance Fund, funding ratios are “well in excess” of the target funding  ratios and were therefore in no danger with respect to viability.

He added that with the current contribution rate of 13% of insurable earnings, 2.2% has been allotted to short-term benefits branch and 1.5% to the industrial benefits branch.

He said as of November last year, the total expenditure on the short-term benefits branch was approximately 1.5% of the insurable earnings, and  for the industrial branch it is approximately 0.3% of insurable earnings.