National Insurance Board of Trinidad & Tobago (NIBTT)

Size: px

Start display at page:

Download "National Insurance Board of Trinidad & Tobago (NIBTT)"

Ralf Park
6 years ago
Views:

National Insurance Board of Trinidad & Tobago (NIBTT) ILO TRAINING COURSE ON SOCIAL PROTECTION AND FORMALIZATION 14-17 March 2017 - Port of Spain, Kapok Hotel Bernard Smith- Manager

1 National Insurance Board of Trinidad & Tobago (NIBTT) ILO TRAINING COURSE ON SOCIAL PROTECTION AND FORMALIZATION March Port of Spain, Kapok Hotel Bernard Smith- Manager Research & Development This Presentation Will Cover Overview of Social Security Overview of the NIBTT Financing Provisions NIS Benefits Benefit Improvements Self Employed Financing Provisions

2 What is Social Security? NIBTT Social Insurance System is based on the contributions of participants and benefit is not meanstested Social Security Ministry of Social Development And Family Services Social Welfare System is un-funded by beneficiaries and the benefit is usually means tested. National Insurance Board of Trinidad & Tobago The NIBTT commenced operations 44 years ago on April 10, 1972 MANDATE "To operate and manage the National Insurance System" MISSION "To deliver meaningful Social Insurance products and quality service to our customers" VISION "Excellence in the provision of Social Insurance products and Services" The National Insurance Board of Trinidad and Tobago (NIBTT)

3 Financing Provisions National Insurance contributions are compulsory for employees and unpaid apprentices registered or eligible to be registered under the system Contributions are weekly fixed payments in relation to wages/salaries of the insured person determined under an earnings class structure. Persons 16 years and 65 years earning a minimum of $200 weekly are eligible for coverage Payment of the contribution is done partly by the employer and partly by the employee in an approximate ratio of 2:1. Recent Changes to Financing Provisions Year Contribution Rate % % 2. Maximum Insurable Earnings (MaxIE) and Minimum Insurable Earnings (MinIE) are to be increased as follows: Year MinIE (Per Month) MaxIE (Per Month) , ,600 These changes took effect on September 5 th *US $1.00 _ TT $6.79

4 Earnings Classes & Contributions (based on 13.2% contribution rate) Earnings Class Weekly Earnings Monthly Earnings Assumed Average Weekly Earnings The National Insurance Board of Trinidad and Tobago (NIBTT) Employee's Weekly Contribution Employer's Weekly Contribution Total Weekly Contribution Class Z Weekly I , II ,473 1, III ,950 2, IV ,643 3, V ,293 4, VI 930 1, ,030 4, , VII 1,120 1, ,853 5, , VIII 1,300 1, ,633 6, , IX 1,490 1, ,457 7, , X 1,710 1, ,410 8, , XI 1,910 2, ,277 9, , XII 2,140 2, ,273 10, , XIII 2,380 2, ,313 11, , XIV 2,630 2, ,397 12, , XV 2,920 3, ,653 13, , XVI 3,138 and over 13,600 and over 3, National Insurance Benefits Long-Term Benefits Retirement Pension Grant Invalidity Survivors Widow / Widower Child / Orphan Dependant Parent Re-Marriage Grant Short-Term Benefits Sickness Funeral Grant Maternity Grant Allowance Special Maternity Grant Employment Injury Benefits Injury Allowance Medical Expenses Disablement Pension Grant Death Benefit Widow / Widower Child Dependant Parent Re-Marriage Grant

5 Coverage Active Insured 519,926 Inclusive of 1,352 domestics Key Labour Market Indicators Indicator June 2015 December 2015 Unemployment Persons with Jobs (000 s) Labour Force (000 s) Labour Force participation rate (%)

6 Extension of Coverage to Self-Employed 102,353 SEP in % of labour force 37,715 SEP aged 50 and over Average earnings of $6,672 for males and $4,625 for females (2013) Extension of Coverage to Self-Employed Benefits proposed Long-term (retirement, invalidity, survivorship) Short-term (incapacity, maternity, funeral grant) Age credits for those aged 50 to 56 Co-payment of contributions for low-income SEP (earning less than $3,000 per month)

7 Extension of Coverage to Self-Employed Age credits. It is estimated that the cost of the age credits is TT$108 million. When expressed in terms of general average premium, the age credits increase the GAP of the SEP system for Long-term benefits (excluding administrative costs) from to per cent Co-payment of contributions for low-income SEP. Estimated that the cost of the subsidy to low-income SEP (earning less that TT$3,000 per month) is TT$3 million in the first year of application and TT$44 million in total for the first 5 years. This includes the cost of the full subsidy during the first year. Extension of Coverage to Self-Employed Proposed contribution rate: 12.4% 12% for Long-term benefits and 0.4% for Short-term benefits Equity with salaried workers Fund projections Billions SEP Salaried employees

8 Extension of Coverage to Self-Employed Projected coverage rate Year Coverage rate % % % % % Linear increase From % Minimum Earnings & Pension As at the June 2015: approximately 57,000 contributors or 11 percent receive earnings below the minimum wage A social security minimum pension between 40% and 80% of the minimum wage is normally considered appropriate for taking care of persons with low earnings The NIS minimum pension of $3,000 represents 115% of the minimum wage (established at $2,600 per month) 97% of current pensioners receive the minimum pension, the NIBTT subsidizes the difference between what is actually earned based on contributions, and the minimum pension

9 3 Year Benefit Payments Claims FY 2013 FY 2014 FY 2015 % Increase % Increase Beneficiaries 164, , , % 5.54% Long-Term Beneficiaries Benefit Expenditure 132, , ,804* 3.95% 5.33% $3.56 Bn $3,92 Bn $4.22 Bn 10.08% 7.66% Long-Term Benefits The long-term benefits (LTB) branch showed an increase in the number of recipients and in the value of benefits paid. This group comprises Retirement Pension, Invalidity and Survivor s Benefit recipients Payment to this group totalled $3,904.97Mn or 92.63% of total benefit expenditure. Benefit Type Beneficiaries Benefit Expenditure % of Total LTB % of Total LTB Retirement Pension 96,395 $3,362.09Mn 66.57% 86.10% Retirement Grant 4,568 $139.15Mn 3.15% 3.56% *Survivors Benefit 39,644 $329.01Mn 27.38% 8.43% Invalidity 4,197 $74.62Mn 2.90% 1.91% Total 144,804 $3,904.87Mn 100% 100% % of Total Beneficiaries *Survivors Benefit plus Survivors Grant

Grants Maternity, Special Maternity, Minimum

March 2013 From March 2013 Comments Child $400 $600

fulltime student) Widow/ Widower $400 $600

10 Questions? Improvements to the Benefits 50% Benefit NIS Grants Maternity, Special Maternity, Minimum Retirement, Funeral Minimum Survivors Prior to March 2013 From March 2013 Comments Child $400 $600 Paid until age 16 Orphan $800 $1,200 (age 19 if a fulltime student) Widow/ Widower $400 $600 Dependent Parent $200 $300 If both alive: $300 each Dependent Parent $300 $600 If only one alive: $600 each

Trinidad and Tobago. Ninth Actuarial Review of the National Insurance System as of 30 June 2013

Trinidad and Tobago. Ninth Actuarial Review of the National Insurance System as of 30 June 2013 Trinidad and Tobago Ninth Actuarial Review of the National Insurance System as of 30 June 2013 ENAP International June 2015 Contents Abbreviations and acronyms... 9 Executive summary... 11 Introduction...