The mismatch between pension benefits and contributions and weak reserve management threaten the sustainability of the National Insurance Scheme (NIS), a recently released Inter-national Monetary Fund (IMF) report says.
The report, prepared by IMF staff representatives for the 2010 consultation with Guyana, said that the finances of NIS are unsustainable under current parameters. “Projections show that after 2011 the NIS will shift from small surpluses to growing deficits,” based on a number of trends and developments. This includes a projection of the “aging of the participating population, as the number of contributors per pensioner would fall from 8 in 2006 to 2 by the year 2056,”
