Citation

Material Information

Title:
The National Insurance Board covering the Islands of The Bahamas for 30 years, 1974-2004
Creator:
National Insurance Board
Place of Publication:
Nassau, Bahamas
Publisher:
Nassau Guardian
Publication Date:
Language:
English
Physical Description:
24 p. : col. ill., ; 33 cm
Physical Location:
HBL Archives - Newspaper supplements box

Subjects

Subjects / Keywords:
Insurance -- Bahamas -- History

Notes

Abstract:
Newspaper supplement published by the Nassau Guardian, November 2004 to celebrate the National Insurance Board's 30th anniversary
Statement of Responsibility:
National Insurance Board

Record Information

Source Institution:
University of The Bahamas
Holding Location:
University of The Bahamas
Rights Management:
This item is licensed with the Creative Commons Attribution No Derivatives License. This license allows for redistribution, commercial and non-commercial, as long as it is passed along unchanged and in whole, with credit to the author.

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\ Produced by The Spedal Sediom Oeportmenl of The Hcmou Guara1an Hovembel' 2004

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2 HE NATIONAL INSURANCE BOARD 2004 MINISTER The Honourable D. Shane Gibson M.P. Minister of Housing & National Insurance BOARD OF DIRECTORS Mr. Philip Davis, M.P., Chairman Mr. Michael Adderley, Deputy Chairman Mr. Earnest Cambridge Mr. Frank Carter Dr. Doswell Coakley Mrs. Wendy Craigg Pastor Delton Ellis Mr. Claude Hanna Dr. Nicholas Hepburn Mr. Lemuel Sweeting Mrs. Claudine Thompson EXECUTIVE MANAGEMENT TEAM Mr. Lennox McCartney, Director Mr. Jayson Moxey, Sr. Deputy Director Mrs. Theresa Burrows, Deputy Director Mr. Anthony Curtis, Deputy Director Mrs. Sonia Gill, Financial Controller Mr. Derek Osborne, Actuary Mrs. Heather Maynard, Legal Officer Dr. Mortimer Moxey, Medical Officer Mr. Lloyd Cunningham, Assistant Director Ms. Azella Major, Assistant Director Mr. Whitney Patton, Chief Internal Auditor Mr. Andre Bethel, Deputy IT Manager PRINTED UNDER THE AUSPICES OF 30TH ANNIVERSARY PLANNING COMMITTEE Mrs V. Theresa Burrows, Chairper son Mr. Jay s on Moxey, Co-Chairperson N1arcia North .. Bain Charles Barton Cecile Bethel Rosetta Booth Mildred Bosfield Pandora Butler Addington Cambridge Wenzel Deleveaux Michael Ellis Azella Major :M:ichael S-mith Soma Williamson PUBLIC RELATIONS SUB-COMMITTEE Pandora Butler, Chairperson Zaneta Adderley George Clarke Stephanie Collie Anntoinette Hutchinson Keva John son Andrea Rolle SUPPLEMENT EDITOR Pandora Butler Public Relations Officer CONTRIBUTORS TO SUPPLEMENT Mr. Anthony Curtis, Assistant Director Ms. Tami Francis, Statistical/Research Analyst Mrs. Sonia Gill, Financial Controller Ms. Azella Major, Assistant Director Mr. Jayson Moxey, Sr. Deputy Director Mr. Derek Osborne, Actuary

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the Governor-General Established by an Act of Parliament in 1974 the Nat ional In s urance Board (NIB ) has been the mechanism by whic h a comprehensive programme of socia l insumnce has been intro duced to The Bahamas. Over the past thirty years this mandatory con trib ut ory scheme has made prov i s ion fo r work e r s to be g u ara nteed partiaJ income replac e m ent on both a short and long-term ba sis, in cases of illn ess, c hildbirth o r work-place injury. Additionally, upon retirement workers are eli g ible for a pension for th e res t of their lives. This safety n e t h as proven itself an invaluable asset to many persons who have accessed the presc ribed benefits and continued their lives without becoming des titute Apart from direct pe rso nal benefit, all c i ti zens and residents have been the beneficiaries of the National Insurance Sch eme. The NIB's performance as a serio u s partn e r in o ur soc iaJ and economic d evelop m ent cannot be overstat e d Utilizin g the accumulated weaJth of NIB o ur heaJth care syste m through stat e-ofthe-art Polyclinic s, h as bee n expanded and upgrad ed. Also, th e development of affordable housing projects thr oughou t our archipelago is a source of pride for all Bahamians. Access to afford able heaJth care and the joy of home ownership earn high rankings o n the personal and national ind ices of Bahamians; hence NIB's blue-chip investment thro ughou t o ur i s land s in these two important areas is most commendable. The value of suc h direct invest-DAME IVY DUMONT ment in our coun-try's infrastructur e a llows for a magnified return via physi cal plant econ o mi c distribution and perso nal pride. I am delighted t o congratul a te th e Mini s t e rs, the Boards of Directors, the manag e m e nt and staff, past and present who ha ve w o rked and will continue to work diligently to conceptual ize, plan, build and m a intain the National Insurance S cheme. I am advised that the r obus t s tat e of the National Ins urance finances i s evidence of th e wise management by the tru s tee s of the fund over these past three decade s May it always be so. Happy 30th Anniver sary. Minister of Housing & Notional Insurance The las t 30 years ha s been a time of massive growth for the National In s urance Board ( NIB ). NIB h as made si n gular contributi ons to the soc ial and economi c progress and development of our country; not merely through it s compre hensive benefits and a ssis tance programmes which directly impact th e individual claimant and his/her dependents, but also indirectly through its extens ive and impressive invest ment portfolio. When the Programm e starte d on 7th October, 1974, few appreciated the i mpact that it would have o n Bahamian life What was not widely understood then, was the far-reac hing and pos iti ve e ffect s that Nat i o nal Ins urance would have on th e socio-eco nomi c fabric of the coun try. Today 3 0 year s after the implementation of Nati o n al Insura n ce, Bahamians are reaping b e n e fit s in many, many ways. The Board has u se d th e contributions from workers of th e country, t o not only pay out ben efits and assistances, but also to invest in vari ous entities. A d e liberat e part of th e Board's investment s trategy i s to lend funds to assi s t in the provi sion of bas i c infrastructllra l development throughout the country and thereby assist with national develop ment. National In s urance has also been a leader in pro viding employment for young Bahamians. NIB 's staff consists of a diverse mix of pro fessions including accountants, doc-HON. o SHANE GIBSON, M.P. tors, lawyers -of all ages and backgrounds. What s peaks positively of the B oard a s an e mployer i s the fact that today a good number of those person s who s tarted out with th e Board 3 0 years ago are s till with the organization today a nd thi s de s pite the inevitable retirement, death s, and most recent ly the early retirement package I s ay a h earty "Happy Anniver sary!" to those l ong-serving, dedicated employee s, and to all NIB s taff! The Bahamian public on thi s 30th Anniver s ary o f the Board, can be assu red that National Ins urance remains today, as alway s, "commiss i oned to serve." .: .... ............. -., -PROCLAMATION WHEREAS the National Insurance Board which adminis ters the Social Security System for the Commonwealth of The Bahamas came into effect twenty years ago on the 7th October, 197 4 ; AND WHEREAS the mission of the National Insurance Board provides for cash payments to all eligible workers and/ or their dependents as partial replacement for lost wages or salary as a result of sickness, maternity, employment injury, retirement, invalidity or death; AND WHEREAS the National Insurance Board also makes provision for Medical Care free of charge to all employed person s and certain categories of self-:' employed persons who may suffer personal injury or who may contract a work-related disease in the course of their employment; -AND WHEREAS the Na t ional I nsurance Board makes -provision for the payment of assistance in old-age inva lidity, survivorship and sickness to persons who do not quality for the benefit as of right, based on need; AND WHEREAS the National Insurance Board in pursuance of these goals registers and collects contributions from employers, emp l oyees and self employed persons throughout the Commonwealth of The Bahamas; AND WHEREAS the National Insurance Board works in cooperation with employers, individuals, private organi zations, as well as with and agencies; AND WHEREAS the National Insura nce Board ha s organized a month of activities to further acquaint contributors and the genera l public with benefits available .. under the Social Security System of the Commonwealth of The Bahamas and especially to emphasise i t s impact and role in the sustained socio-economic growth and devel-opment of this Nation under the theme u30 Years Traveled ... Building on Our Successes"; NOW THEREFORE, I Perry Gladstone Christie, Prime Minister of the Commonwealth of The Bahamas do hereby proclaim the week commencing Sunday 3rd October 2004 and ending Saturday 9th October 2004 as "NATIONAL INSURANCE WEEK." IN WITNESS WHEREOF I have hereunto set my Hand and Seal this 27th day of September, 2004. Perry G. Christie Prime Minister National Insurance Board 3

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WINNING ESSAYS As part of its 30th Anniv ersary celeb rations, the National Insurance Board staged a series of edu cational activities to fur ther acquaint contrib u to r s and the general public with benefits available under the Social Security System of the Commonwealth of The Bahamas, and to emphasize its impact and role in the sustained socio-economic grow th and development of the nation. Included in the schedule of activities was an essay competition for students of the Board's adopted school Yellow Elder Primary, and an essay competition for NIB staff members. On October 25 and 26, the winners were announced in the respective competitions. Rashann 1iaja Porter, a JO-year old, Grade 5 M student of Yellow Elder P rimary School, won for her essay which highlighted four benefits paid by National Insurance and their importance to Bahamians; and Ruth Nottage, Senior Clerk in the Boa r d's Accounts Departme nt, won for her discussion of the impact that the National Insurance Board has on the economic and social development of The Bahamas." The winning entries follow. ------r----------------------------------------------------------------------YELLOW ELDER PRIMARY SCHOOL i STAFF ESSAY WINNER B y Rashann Tiaj a P orte r By Rut h N ottage Sr. Clerk "Need a helping band or a big brother when times are rough? Well, you need "General Geo rge S. Patton in one of bis speech said "Fear is to get to know about National Insurance. perhaps the greatest stumbling block to achieviilg success; but many of us do not flee from fear ... we embrace it." Fortunately, Natio nal cares for all B ahamians. I t provi d es, amon g o ther p ay, the government of the Bahamas thirty years ago did not men ts, S i ckness, Disablement and Funeral Ben efits and their offices are eas, embrace fear. In fact, despite all the odds, and the odds were ily found throughout The B ahamas. certainly against them, they were determined to make it better Bahamians have and are contributing to building up the National Insurance ; for all Bahamians by introducing a National Insurance scheme, programme so that they can get help when they r eally need it. ; its mission "To provide Social Security coverage, in the form If you are sick, you can get a chequ e to help put you back 00 your feet again. of Benefit Payments to insured persons and their dependents, too provide a minimum level of Social Security coverage for lf you are disabled, your "brother" National Insurance will come to your respersons who do not qualify for s uch Benefit s as of right; and to cue each mon th. effectively and efficiently administer and manage th e National If you are retired, National Insurance makes sure that you e njoy your "gold' Insurance Programme and Fund in acco r dance with the fiducie n years" by paying divide nds" on your con tri b utions made. ary principles laid out in the National Insurance Act and If you are financially stressed with the death of a loved one, National 1 Regulations." In s urance helps comfort you by giving a $1,500 cheque. The year was 1972 ; the place The House of Bahamians are grateful for th e existence of National Insurance s ince 1974! Assembly, after hard work by all the committees involved the fetus was formed as a resu lt of an act that was signed into law on D ecember 12 by the then Minister of Labor and Welfare, the Honorable 1 C lif ford Darling, M.P. This was aU subseq uen t to th e government of Lhe Bahamas seeing the need to seriously review the Board knew its role since inception which is t o provide in come security during unforesee n events. The driving force behind the board or NIB as it is commonly known is it s contribution col lection and as a result of these collections the board ha s approximately 1.3 billion dollars in reserves according to its latest financial statement, the board bas indeed become an eco nomic force in the Bahamas and has made a tremendous i m pact As a result of its reserves NIB has invested a substan tial amou n t of fund s in all the commercial bank s in the Bahamas, Commonwealth Bank, Scotia Bank. and the Bahamas Development Bank to name a few with its investment income being approximately 6 %. The board has indeed been a financial support for man y Bahamian families as a result of the provision of funds through its benefits and assistance pro gramme. This fund is divided into three areas, s hort -te rm, industrial, and lon g -term Shortterm benefit include s Invalidity, Survivor's Sickness Maternity and Funeral benefits and the board has paid out approximately 23 million was paid. Th e Industrial Benefits includes Medical Care, Injury Benefit, and Disablement Benefit & Grant, and approximately 7 Million was paid. Long-term include Retirement and Survivor's benefit and Old Age Non-Contributory Pension (0.A.N.C.P ) and approximately 73 Million was paid These figures are aU accor din g to the most recent Annual Report. Indeed National I nsurance has tru l y played an economic role in 1he Bahan1as and in the lives of individual families throughout the Bahamas. f irs t p l ace winner Rashann T iaja Porter gave h e r l i s te ner s a high energy, a tti tud e -full reading of h e r e s say on th e ben efits o f National Ins uranc e existing social legislation affecting Bahamians. Hence after critical delib eration the government sec ured the services of th e Inte rna tional Labor Organization through the Un ited Nations Ruth Nottage was a crowd please r with h e r reading of h e r essa y She a nd the other finish ers are pictu re d receiving th ei r trophi es from left: Lemu e l Sweeting NIB Boar d M ember; O smond Lacroix, 3rd plac e f inisher ; Rut h Nottage; Jayson Moxey, Sen ior Deputy Di rector; and P eter Delancy Local Offic e Mana ger. Missing f ro m pho to is 2nd p l ac e finis her Sandra Br idgewater, Manager o f th e Board's Exuma Local Offic e T he board ha s also impa c ted the soc ial dev e l opme n t of the Baham as. One such area is i mprov ing health infrastructure. lo an effort to improve health infrastructure the Bahamas in the board h as embarked on building sta t e NIB Directo r Lenno x McCartney and Principal Katherine McPhee congratulate the three top finishers in the 30th Anniversary Essay Conte s t Pictured with Principal McPhee and Director Lenno x McCartney are, from l eft: Jonell Emmanuel third place finisher; Rashan Porter first place winner; and Tamera Fuller who placed second. 4 National Insurance Board Development Prog ramm e to s u rvey the possibility of introducing a scheme of National Insurance. Yes, a baby was about to be born, it was th e National In s urance baby. During its embryonic stage there was much discrepancy, on one hand there were so m e who wanted to abort it because it seems as if the birth would be premature. On the other hand, there were those who felt sure that this child would grow to have a positive impact on the economic and social development of the Bahamas. They were the persons who provided all the necessary nourishment during the pregnancy that would bring forth a healthy birth. Finally, after n ine months of its pregnan1 cy stage, it was time to give birth and on October 7 1974 the final push was given and the Bahamas gave birth t o the fir st Social Security Scheme ever, the National In s urance B oard baby. As with any other births, there was exci t ement th r ougho ut the length and breath of the Bahamas as n ews was aired about the birth of the National Insurance Board The then organizers worked feve ri shly, on that day alJ employed persons and their employers were required to join the programme. Ther e was a vast registration drive throughout the New Providen ce and at that time, contributions were paid based on only six wage groups. Since the "First Appointed Day", also known a s "DDay that infant is now 30 years old and has truly made its mark throughout the Bahamas. As parents we want our children to become p r oductive citi zens making positive contributions to soc i ety. Unlike man y of us w h o do not kn ow o ur role in soc i ety The Natio n al Insurance of the art health clinics in Nassau and the family islands. To date as a re s ult of funding from National In surance and in conjunction with the Ministry of Health state of the art clinics has been built in Kemps Bay, Marsh Harbour, Cat fsland, Spanish Wells, Eight Mile Rock and many other famil y islands and Nassau. These clinics in most instances have been able to serve as mini hospitals partic ularly in the fami l y islands where there are no hospitals most of them also houses a morgue. As a result of the construction of these clinics, many residents no longer have to travel to Nassau to see the doctor or dentist because most services are offered at the clinics. One can safe l y say that the board has indeed met the social needs of Bahamians. Finally, National Insurance has also impacted the physical needs of Bahamians. The board has invested O n e Hundr ed and Eleven Million, Three Hundred Thousand in bonds from the Bahamas Mortgage Corporation, and the corpo ration was able t o use these funds to build low cost homes in Nassau and the family islands. As a result of this many Bahamians are now proud owners of quality built homes in areas s uch as Millennium Gardens, Golden Sun Subdivisio n Nassau Villag e Subdivision and man y others. The board employs approxi mately 300 Bahamians and has been a ble to meet the physical needs of these employees and their families through salaries [n conclusion, with its theme as "30 Years Traveled ... B uilding On Our Successe s it i s clear that this 30 year youth with the assistance of its liardworking parents (the employees) h as made economic a nd social impact on the development of th e B ah am as."

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The Chairman On October 7, the Nationa l Insurance Board obse r ved and celebrated its 30th year as the institu tion responsible for the administration of Social Security in the Commonwealth of Th e Bahamas. Over the past 30 years, the Pr ogramme ba s under go n e numerous changes to improve its benefits and services to contributo r s and t h e general publ ic. In the initial stages, there were varying l eve l s of s u s pi cion and a general la ck of appreciation for what the pro gramme was about. What was said couldn't be done, i s now being done. National l n s uranc e has grown and gained the support and confidence of almost every Bahamian. We all know, how eve r that progress is never easy and that it is only through hard work and commit ment that we can eventually achieve our ultimat e goal. One of the major chaUenges National Insurance bas enco untered and which b as faced administrators of social sec urity programmes generaUy, has been in th e area of service delivery esp eciaUy in the timely payment of benefits. "Se rvice" i s the watchword of the National In s urance Board ; Commissioned to Serve h as been the theme and motto of the Board and it dictates that we se rve the people. W e pledge our contin u ed support and commitment to providing even greater, more resp onsive service to o ur contrib utors in the future. Another major chal l enge is that of com pliance. For th e great major i ty of o ur peop l e, social security, as pro vided under the National In surance Programm e, is all that wiJI g iv e them the means to reti r e with MR. PHILIP DAVIS, M.P. some semb lance of dignity. I t is vital, ther efo re, that all businesses be properly r egiste red and for contrib ution s to be paid into National In surance each month in respect of every wo rker employed and self-emp l oyed in the country. These contributions ensure the timely pay ment of benefits when the worker is unable to work due to any number of reasons. I commend t h e Director and s taff on 30 years of outstanding performance. The Board of Directors and staff pl edge their total co mmitment to continue to ensure that Baharuian s continue to r eceive th e quality serv ic e they so richly deserve. The Director The pas t 30 years ha s been eventful and invigorat ing for the National Insuranc e Board! In it s 30 year existence, the B oar d h as had to ov e r come many challenges. Some of these chaUenges inc lud ed the inevitab l e growing pains of infancy, and the sus pi cion and hostility of tho se faced with the unfaruiliar. These challenges demanded exceptional co ntribu tio n s from many persons, parti cu larl y the ear ly pio neers of the programme. Through th e commitment and d ed i catio n of the many that foll owed, the National In s urance B oard h as met eac h chaUenge, emerging stro nger for having bee n in the race. Though no one h as taken a cutlass to u s in a num ber of years, there is still r esistance though of a more passive sort Many work e r s of th e country are not comp l ying with the Act. 85% of self -employed persons continues to be g ainfully e mployed but manage to evade the pay ment of contri bu tions. P erso n s like jitney drivers and taxi driv ers, s traw vendors, domestic workers co n s tructi on workers, contin u e to pose a cbaUenge for the B oard. The r e are a number of n ew initiatives p r esently being und ertaken by the Board to address this prob lem as we are committe d to our mandate to provide income protection for aU workers, and the only way to do thi s is to ens ur e full partici pation. National Insuranc e will work hard to meet the c haUen g e s in the years ahead. We have recommitted ourse l ves to providing th e best quality serv/tllt. IM>X Ma:ARJllE1 ice to o ur c lient s. As Dir ector of the National In surance Board, I w i s h to thank our staff for their hard work and ded icati on over th e years. I w ish also to thank former employees of the Bo ard for their invaluable co ntri bution s to th e s u ccess of our nation's social sec urity programme. FinaUy, I congratulate and commend our 30 year h onourees 33 of them, who, t oge th e r with the o ther early visionaries and pioneers, l aid the foundation upon which we continue build. Happ y Anniversary NIB and Nibbers! May our e ndea vours always befit the c hal l enges we for we hav e, indeed, been "Commissioned to Serve.'' The Management and Staff of the ANGUILLA SOCIAL SECURITY BOARD extend sincere congrat ulati o n s to the National Insurance Board of the Commonwealth of Th e Bahamas o n the occasion of its 30 Anniversary. May you continue to provide quality service t o the people of the Bahama s for may more years t o come. Warm es t congratulations are extended to the Board Management and staff of NIB Bahama s, on the occasion of your 30 Anniversary. We appreciate the cordia l r e lati ons hip we hav e enjoyed ove r the years and wish you conti nued s ucc ess in yo ur effo rt s to provide economic protection for the people of Th e Bahama s. Th e Board Management and staff of The Anti gua & Barb uda Social Security Board On the occasion of the National Insuranc e B oard's 30th Anniversary, THE BELIZE SOCIAL SECURITY BOARD extends warm congratu lation s for providin g service to insured person s since 1974 and for improving coverage for Bahamian s. Th e NIB continues to sustain itself for the of future ge n erations. Congratulations! DOMINICA SOCIAL SECURITY BOARD CONGRATULATES The NATIONAL INSURANCE BOARD O F THE BAHAMAS on the observance of th e 30th Anniversary o f National Insuranc e in Th e Bahama s. We look forward to the maintenance and strengthening of our friendship as we e n deavo r to improve the lives of all Caribbean peopl e. THE NATIONAL INSURANCE BOARD OF TRINIDAD AND TOBAGO congratu lates the Natio n al Ins uran ce B oard of The Commonwealth of the Bahama s on it s 30 th Anniversary. May the foundations that you ha ve laid se rve you well to su pport your current and future National Insuran ce initiatives. THE ST. CHRISTOPHER AND NEVIS SOCIAL SECURITY BOARD Management and s taff extend hearti est congratulat i ons and best wishes to Th e National In s urance Board of The Bahamas on th e occasion of the celebration of the thirti eth Anniv ers ary of yo ur organization. May you continue to carry on the great tradition of exemplary service in the co ming years The Board of Direct ors, Man agement and Staff of NATIONAL INSURANCE SERVICES ST. VINCENT & THE GRENADINES Congratulate th e NIB of the Commonwealth of The Bah amas on it' s 3oth anniversary celebrations and wish yo u co ntinued s ucce ss in yo ur future en dea vors We join you in your effort in promoting socia l security protection and economic d evelopme nt in the re gion. In re cogni tion of your many years of dedica ted service, the Honourabl e Minister Chairman Member s of the Board Director and Staff of the TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD ex t e nd their heartiest congratulations to The Baham as National Insurance Board on your Anniversary. May you continue to protect and se rv e your people with pride. National Insurance Board 5

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',,\%,'', ', ,, FAQ Life is too good to spend in line. Bank of The Bahamas congratulates the National Insurance Board on its 30th anniversary r t 1 t r

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THE NATIONAL INSURANCE BOARD FINANCES AT A GLANCE Th e Nati o nal Ins urance Fund was establi s hed under s ec ti o n 44(1 ) o f the National Ins urance Act. The Fund oper a t es under th e c ontrol and management of the NIB (the B o ard ). The mana g ement of the Board bas the fiduciary r es pon s ibili ty o f managing and s afeguarding the monie s paid into th e Fund and ensuring their proper utilization Section 44(1 ) of the Act outline s what s um s s hall be paid into o r o ut o f the Fund. The s e include: Pay into the Fund NIB C o ntributions Government contributions to Old Age Pension interest o n investments Pay out of the Fund Benefits and ass istance s Expen s e s o f admini s tering the Act other s um s properly accruing to the Fund The moni es co ming into the Fund pre s ently exceed the s um s paid out of th e Fund resulting in continued growth of the Fund's R ese rve s. At December 31, 2003 the Reserv es s tood at $1. 2 billion. Thes e Reserves are invested as pro v ided for b y sec tion 44(5 ), in order to provide additional in c ome for th e Fund. The figure s b e l ow s h ow th e gr o wth of the Fund s Re se rve s o v er the years. 1975 1980 1985 1990 1995 2000 2003 17m 113m 265m 508m 731m 1,019m 1,226m Contribution Income The primary s ource of income for the Fund i s c ontribution s from emplo y er s, employed person s se l f-employed and vol untarily insured persons. Contributions have grown from $ 2lm in 1975 t o $ 122m in 2003. In 2003 c ontributions rep re s ented 63 % of the Fund 's in co me While this amount was paid into the Fund becau s e of the lack of compliance on the part of employers and the self-emp l oyed, the amount due to th e Fund is muc h higher. Grant from Conso lidated Fund The Fund rec e ives a grant from the Bahamas Government in the amount of $4.9m per annum This grant represents the Government s contribution towards thtipayment of old age pension NIB Statistics OOO's $ 1975 198 0 1985 1990 1 995 2000 2003 -+-Conbibut ions --Benefit Expendllure .....__ l nvnlment lrn:ome A dmin i strat ive E xpanses Investment Income A maj o r s ource of income for the Fund income deri v ed from it s inv es tme nt s. Th e R ese rve s of the Fund can be inves ted a s outlined in Section 44(5 ) of the A c t. Hi s torically, the B o ard h as been conservative in its inv est ment appro ac h pla c ing e mphasi s on making prudent deci s ion s to s afeguard the principal sums invested. The legi s la tive guidelines are such that most of the Fund' s investment opportunitie s requir e the approval of the Min s ter respon s ible for National Insuran ce The following i s a summary of the Fund's investments at December 31, 2003: In recent year s, management has been challenged to find investments that conform to the legi s lative guidelines or that can obtain the approvals. In an effort to broaden the scope of the Fund 's investments an Investment Policy Statement has prepared. The document proposes that a portion of the Fond s as s ets be, managed externally (in The Bahamas) witbiQ guidelines set by the Board, and that a por tion be placed internationally. This is in of the fact that the overall yield on Fund is one of the critical components in SC?curing the term financial sustainabili ty of the Fund. One of the branches of the Fund is the Medical Benefits Branch, the Funds of which are to provide financing for development of health infrastructure and studies related to delivery of medical care. Towards this end the Fund has s pent $25m on buildings and equipment (polyclinics) throughout The Bahamas. The Ministry of Health assumes responsibility for the operation of the polyclinics, and NIB receive s a nominal rental of 2 % of the cost. Al s o a s a part of its 'soc ial inve s tments', NIB has pur c ha s ed bond s from th e Bahamas Mort gage C o rporati o n to fa c ilitate hou s ing initi a tive s, a t r a t es bel o w market rate s. The s e bond s ar e g uaranteed by the G o v e rnm e n t of Th e Baham as As part of it s in vestme n t p ortf oli o, th e Fun d has p urc h ased and/or con s tructed a n d furnished severa l office buildings fo r the Bahama s Governmen t. The s e finance l ea s e arrange m en ts p ro vid e the F und w ith a re turn of 7 7 5 %, and th e Go v ernment is c ur re nt with regard to its payments on t h e l e a s e s Benefits The Fund pay s monie s to person s who qualify by right (benefits) and to those who meet qualifying c ondition s for as s i s tance. Benefit expenditure has grown from $2 .7 m in 1975 to $106.2m in 2003. Pen s ion benefit s ( eg. Retirement old age pension invalidity etc.) account for 76 % of th e ben efits As the Fund matures and more contributors qualify for long term benefits the benefit s of thi s Branch continue to increase. The exception in this group is old age pen s ion assistance, which is slowly decreasing as fewer persons are able to meet the qualifying conditions for the a s sistance Administrative Expenses The admini s trative expen s e s of the Fund totalled $2 l.2m for the year ended December 31 2003 (excluding deprecia tion). Approximately 74 % of this amount is c onnected t o the employment of the Board 's approximate 465 employee s These costs include s alarie s and allowan ces, pen s ion bene fits group medical insurance and Nation a l Ins uran ce expense The main expenses for the 2003 year end are s hown below Admininstrative expenses Salaries & allow. oR&M Travel & Transport Vehicle a Insurance Security Office Suplies The high level of administrative expenses negatively impact the Reserves of the Fund, and measures have been implemented to reduce staff levels, and the re l ated costs. One component of this process is a Voluntary Early Retirement Package (VERP) which was implemented in May 2004 It is expected that most of the positions vacated can be filled internally without hiring new s taff Another initiative being tak e n by the Board toward s reduc ing admini s trative costs i s more e x t e n si v e u se o f technolo g y to s treamlin e w o rk p roce ss e s and incr eas e effic ien c y A s th e B o ard mar ks its 3 0th ye ar o f e x i s t e n ce and c onsid ers the bes t w a y forward s ome major d ec i s i o n s will be r equired New ini tiati v e s will h ave to b e impl em ented to im p r ove i n ve s tme n t r e turn s p ay in g of c on tributions reduce ope r a tin g expense s and better admini s tration o f the Act in a manner tha t sati s fie s NIB 's c u s t o mer s All o f these w ill h e lp e n s ure a finan cia lly s tabl e NIB Fund for th e futur e National Insu rance Board -7

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. .. NATIONAL INSURANCE PROGRAMME: 197 4 2004 The National In surance B oard (NIB ) came i n to bei n g as a result of an Act of P a rl iament the National ln slirance Act. ll was signed into law on 12th Decembe r 1 972, by the M inister of Labour and Welfare, the H onourable Clifford Darl i ng, M.P. THE A C T: "AN ACT TO ESTAB U S H A SYS T E M O F NATIONA L INSURA N C E PROVIDING P ECUNIARY PAYM ENTS IN RESPECT OF S ICKNE S S I N VALIDITY, MATERNITY, RETIREMENT DEATH, INDUSTRIAL INJURY AND DISABLEMENT AND DEATH FROM INDUSTRIAL INJURY, MEDICAL CARE, AND OF SOCIAL ASSISTANCE FOR INSURED AND OTHER PERSONS NOT QUALIFYING FOR SUCH PAYMENTS AS OF RIGHT AND FOR PURPOSES CON NECTED WITH OR INCIDENTAL TO THE MATTERS AFORESAID." CORPORATE MISSION STATEMENT To provide social security coverage in the form of benefit payments to insured persons and their dependents, against the following contingencies: Sickness, death, invalidity, child birth retirement and on the death of the family's breadwinner, survivo r ship; and industrial injury, including disablement, death and medical care ; To provide a minimum level of social secu rity coverage for persons who do not qualify for such benefits as of right; and To effectively and efficiently administer and manage the National Insurance Programme and Fund in accordance with the fiduciary principles laid out in the National Insurance Act and Regu l ations; and thereby assist with the sustained, orderly socio-eco n omic grow th an d developme n t o f th e country. th is group. The "Declare d Day" was I st November, 1980 This i s when payments of Industrial Ben efits t o i njured empl oyed persons, were introduced. The prov i s i o n s of t h e W orkmen's Comp ensat i o n Act, were re peal ed. INTRODUCTION OF THE GENERAL BENEFITS ( Social Insurance ) : Sickness Benefit becam e pay abl e o n 7th April 1975 26 weeks after th e Firs t Appointed Day. Payments ranged from $ 10 to $54 weekly. Funeral B e n efit became payable on 22nd September, 1975 50 weeks after the First Appointed D ay. The one-time payment was $200. Maternity Benefit a l so became payab l e on 22nd September, 1975; weekly awards ranged from $1 0 to $54. Invalidity Benefit became paya b le o n 22nd Augus t 1977 150 weeks after the introduc tion of the Programme. Retirem e n t Benefit became p ayable on 22nd August, 1 977. Initial monthl y p ayments wer e $26, this was increased to $40 as of 7th October, 1977. Survivors' Benefit also became payabk on 22ndAugu st, 1977. A SS I STANCE PROGRAMME: ( Social Welfare for needy re sidents who do not meet the specific contrib utio n conditions for the award of benefits.) Invalidity Assistance: Previ o u s monthl y rate of $ 1 3 was in creased to $26 w h en National Insurance assumed res p o n s ibili ty o n 7/10n4. R aised t o $40 in December, 19 78. First at the Helm of the NIB Team SIR CLIFFORD D A R UNG M i nister : 1974 1977 MR. EARL THOMPSON Chairman: 1974 1977 MR. BYRON PINDER D irecto r: 197 4 1980 1 977 after th i s to the Minister of Health and Housing). The Chief Executive Officer dur ing this period was Mr. Byron Pinder, who served as Director. National Insurance pro vided service from 12 Regional Offices situ ated on Abaco (and its cays)-Marsh H arbour; Andros (and the Berry Islands) Fresh Creek; Bimini Alice Town; Cat Is l a n d New Bight; Crooked I sland & Acklins Colonel Hill; Eleuthera Governor's H arbour; Exuma George Town; Grand Bahama, F ree p ort; Inagua Matthew Town; Long Island Deadman's Cay, and San Salvador Cockburn Town. At th e end of th e first triennium, NIB had co l lected some $58 million in contributions; bad paid out over $6 million as benefits/assi s tances and had a Rese.rve Fund of over $42 million. 1978 1980 NIB faced its first real crises during this stage i n its deve l opment. These included th e death of the Director in 1980 and the resignation of th e Chairman. also in 1 980. Major achievements during t hi s period i n cl u d ed : 1 9 8 1 -1983 This was a significant period in the life of the organiza tion, one that saw it emerging fully on the national landscape. A new Ministry the Ministry of Housing and National I nsurance was c r eated, and the first Minister appointed to this pos t was the H onourable Hubert lngraham, M P Significant develop ments took place over this trien ni um, that greatly contributed to the future growth, development and expansion of the National Insurance Programme. Some of these includ ed: Recruitment and depl o yment of a c adre of well -trained Bahamian p rofess i onals. Exp ansion and relocation of many of the Regional Offices both on New P r ovidence and the Family I s l ands. Introduction of the nucleus of the first coor dinated and compre h e n sive p ublic informa tio n programme in a Government Corp oration; 1983 also saw the successful s tagi ng of the first "National Insurance Week". HIS TORICAL HIGHLIGHTS First Actu arial review as of 31st Dece m ber, Old-Age Non-Contributory P e nsion: Rate 19 78; As 198 1 h a d been decl ared by th e United Natio n s to be. 'The Year of the D isab l ed", dis a bled per sons were award ed 500 spec i al co n tribution c r edits as of tha t year. 1974-1977 of payment and dates of increase same as The "First Appoint e d Da y D D ay", w as 7th October, 1 974. On this d ay, all e m ployed perso n s an d their employers w e r e m andatori ly brought in to th e Programm e Massive reg istratio n drives were h e ld thro ugh o u t th e coun try; and contributio n s wer e payable based o n six (6) wage groups. Also, from this date, all old-age pen sions and assista nce pre viously paid through the Welfare D epartment, became the responsibility of the National Insurance Board. I nvalidity Assi s tan ce. .._. Increase in the rate of mon thl y Assistance Sickness Asmtance paid at a weekly rate of $6 as of 7th October, 1 974, raised to $ 9 .23 weekl y in December 19 78. Survivors' Asmstance : I nc re ased fro m $ 1 3 per month to $26 per month on 7th October, 1974 and to $40 on 7th October, 1977. ADMINISTRATION & FINANCE Headquarte red on New Providence in the The ''Second Appointed Day" was 5th McAlpine Building on Farrington Road, April 1976. On this dat e all self-e mployed National Insurance was administered by an person s were brought into the Scheme. 11-member Board of Directors, headed by Mas s ive registration drives took place and Mr. Earl Thompson, M.P., who reported to the monthly contribution s became payable from Minister of Welfare the l 8 Natibna1 lnsur&l\ce Bocird1 H o nollfllble Clifford Darling M P ., (to June p a y m e n ts from $40 t o $60 on 1 s t Dece m ber, 19 8 0. ADMJNISTRATION & FINANCE From June, 1977, Cabinet res ponsibili ty fo r N IB rested with. the Honourabl e Perry Christie, M.P., Minister of Health and H ousi ng. Mr. George Mackey, M .P ., was appointed Chairman in 1980 and following the death of the first Director a management team was appointed to coordinate the day-to day administration of NIB. Total contributions c o llected during this period amounted to ov e r $ 70 million; over $14.8 million was paid o ut as benefits/assistance and the Reserv e Fund stood at some $10? million. Amendme n ts to the Benefits and Assista n ce R e gula tio n s greatl y liberalised the quali fying c onditi o n s m akin g it l ess restri ctive for per sons to q u alify for Mat e rn ity, S i c kness and Survivors' Ben efits and which saw the Fun eral Benefit grant raised from $200 to $600. ADM1NISTRATION AND FINANCE Up to June, 1982, mini s terial responsibility for National Insurance re s ted with the Honourable Perry Chri s tie M.P., then with the Honourable Hubert Ingraham M.P.; Con'td on pg.16

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NIB Changing for good, the delivery of health care services in The Bahamas Sir Lynde n Pindling, i n looking back at his achievements as Prime M i n i ster declared that he was proudest of the establishment of National Insurance He is pictured here unveiling the plaque to the NIB funded Landrail Point Clinic in 1991, while former Minister of Heahh Dr. Franklyn Walkine looks on. The con s truction of h ealth clinics is b u t one example of the w a y in which National In s uranc e funds are used as soc i al invest ments tha t imp ac t pos iti ve l y th e h e alth infr a structure of the country. Such investme n ts are made p ossib l e thro ugh the M edical B enefits B ranc h w ltjch was cre ate d in 1985 wi th an initial endowment of $40.6 million $25 million from th e R eserve Fund of the S h ortT erm B e n efi t s Branc h and $15.6 milli on fro m the Reserve F und o f th e In dustrial Benefits B r anch. O n the r ecom menda ti o n of the Actuary, an ann ual alloca tio n of 1.1 % of the Contributions In come i s apportioned to this Branc h o n J
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Caricom Social Security Agreement (CSSA) Social Sec uri ty Schemes requir e all e mpl oyed persons within their respective jurisdictio n s to register and pay contributions. These contributions entitle the employed persons to Benefits, which are in most cases, cas h payments made during pre--deter mined circumstances like sickness or childbirth. There are contri bution conditions which mus t be satisfied for the awar d of any benefit and so it is safe, therefore, to say that the more contribu tio n s one pays the better one s chance of qualifying for an award. hav e ratified and enacted th e Agreement. In this regard, migrant or traveling wor ker s h ave always been at a disadvantage. There have been many perso n s who have worked and paid contributio n s for short periods before m oving on to another country where they do the same. At the end of their work lives, they find that they have not paid contributions l ong e nough in any one co untry to qu ali f y for a pension award. What the Agreement m e an s in effect is that a person who works for a s h orter period o f time than is required to qualify for a B e n efit in, say The Baham as, woul d be able to have those contributions "carried over" and fac tored in when d etermini n g whether h e or she meets the contribution cond i t ions in, say Barbad os, i.e., if h e or she did not work long enough there either to qualify under their contribution co nditions. To address thi s probl e m, th e Caribbean Communit y (C f\Rl COM), initiated the Caricom Social Security Agreement ( CSSA ) which attempts to protect entitlements to benefits and to provide equality of treatment to in s ured persons when th ey move from one CARICOM country to anoth er. The Bahamas Government became a s ignatory to the agreement on October 27, 1999 at the Special Session of the Conference of Heads of Government of the Caribbean Community held at Chaguararna s, Trinidad and Tobago. The Agreement was subsequently ratified on August 10 2001. Today, all Engli s h-speaking CARICOM member state s The Agreement is not intended to provide persons with better ben efits just with the ba sic award. A person who qualifies in any one country i s not covered in th e Agreement The CSSA provid es for th e pooling of i;._...:;.. __ insurance periods served in various CARINIB D irecto r Lennox McCartney, addresses delegates at the 2001 COM countries, and for the payment _of CARICOM meeting where the Agreement was ratified. Benefits by one or more of the Soctal Security Schemes. It make s provision for the c) Retirement pen s ions; combining of the insurance periods between member countries and covers d) Survivors pension ; and e) Death benefit s in the form of pensions. a) Invalidity pensions; b) Disablement pensions ; ABOUT OUR INDUSTRIAL INJURY BENEFITS Have you ever been unable to work after suffering personal injury s u ch as a sprained ankle bums about the body or an amputated foot, from an accident arising out of, or in the course of your employ ment ? Or have you ever developed writer's cramp (prescribed disease) from prolonged periods of handwriting. If you are an employed or self -employed person class B, then you are entitled to INDUSTRIAL IN.JURY BENEFIT. Indu strial Injury Benefits aie periodic payments made by the National In surance Board from the fourth day after the industrial acciden4 at a rate of 66 2/3% of your average weekly insurable wag e or income for a period up to forty weeks. [Present maximum benefit is $266.66 average weekly in s urable wage ceiling of $400.00). Of course some people due to the nature of the injury, may require more than forty weeks of inca pacity. In this case the injured person may aP.ply for DISABLEMENT BENEFIT. Disablement benefits are monthly payments made by the NIB to a person who suffers an industrial accident and who after forty weeks his/her level or degree of disability is assessed at 25% or more. A DISABLEMENT GRANT or one-time payment is paid to persons assessed at 24% or l ess. The Natio nal Insurance Board will not only make weekly or monthly payments when you are inca pable of working due to an industrial injury or disease, it will also provide r easonable and nec essary medical care for that injury. This medical care shall comprise: Care by r egistered medical or dental practitioner incl u ding medical examinatio n diagnosis, treatment and first aid given b y the practitioner. Medical, surgica l and nursing care as a hospital patient Rehabilitation and reme d ial services. Repair and renewal of orthopedic, prostheti c, ophthalmic, and other appliances necessary for the rehabilitation of the injured person. Other services, incidental or supplementary to the foregoing forms of medical care, as may from time to time be approved by the Board. The purpose of the medical care s hall be provi ded with a view to: (1) maintain, restore or, where this is not possible, improve the health of the injured person, and (2) prepare a di sab led person wherever possible for the resumption of this previous activity or, where this is not possible the most suitable alternative gainful activity. Medical care should be in such a manner as to secure maximum efficientey within the scope of th e benefit at the maximum reasonable cost. Medical care is free of charge to the injured person who must first seek the approval of the Board before obtaining such care. The Board, however, will make exceptio n s for emergency circum stances. THE BOARD WILL PAY NECESSARY TRAVEL EXPENSES: Where an e m ployed person suffers injury by accident in the course of his employment, which necessitates his remo val to hospital or his r esidence, the Natio nal Insurance Board will reimburse reasonable expe n ses incurred by the employer or employee whoever provides or is responsible for suc h suitable conveyance of the injured person. An employer or self -employed person (class B) must submit a report of the employment accident in th e forin and man ner required by th e Board within three months of the occurrences of the accident and furnish any other n ecessary particulars (employment history medical report or name of witnes s). Finally, if after the Board bas done all it can to improve the health of the injured person and he stiJJ, unfortunately, dies, the Board will pay Death Benefit to his dependents widow/widower (as long as be/ she remains unmarried), parents and unmarried chil dren. ONE IMPORTANT NOTE: The injured perso n has the right to appeal any decisions made by the Board H e may su bmit his reasons for an a p peal wi thin twen ty-one days after receipt of decision. H e is then given an opportunity to present hi s case before an Appeal Board --------------------------------------------------------------------------------------DO YOU KNOW YOUR eOC!IAl eSl!UalTY PROGUMMS? l. When did the National Insurance Sc h eme begin? --a;;y-monili year 2. Who was NIB's first Minister7 ----------3. Wh.o is the Director of Natio n al lnsunnce? _______________ 4 How m any members make up t h e Natio nal Ins u r anc e Board of Directors?-----5. Name two S h ort-Ter m Benefits: 6. Nam e two Long-Term B e n efits: 7. Bow many NIB Local/Sub Offices are there a round The Bahama s? ____ 8. What is it that yo u sit on, s l ee p in and brus h your t eet h with? __________ 9 What is th e name of the l ast clinic to be officially opened and turned over to the Ministry ofReal th b y NIB? ________________ lO. What is the minimum number of contrib uti o n s yo u n eed to q ualif y for Sickness Benefit? __ I The Board will also pay reasonable cost of subsiste nc e if an escort is neces sarily required by th e injured perso n Bring in_your completed quiz to the Board's Public Relations Department located on the : second Roor of the Wulff Road Complex by November 12th and if you have all right, you 11r1 1 ,,, J ,l,Cl one entfy' per person please. REPORT OF ACCIDENT: 1 o National lns.urcince IOG'rd

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The Social Security Reform Commission "Acting Today For A Secure Tomorrow" The National insurance Board promises to deliver to its past and current contributors, social security benefits and pensions both today and weU over 60 years into the future. Sickness, Maternity and Industrial benefits are paid during one's pro ductive years, while RetiremenL and Invalidity pensions are paid when one can no longer work. Therefore, it is critical that governmen t and the public be confident that the National Insurance Fund will be financialJy sustainable for the long term. As a result, actuarial reviews of the National Insurance Fund are performed at four to five-year intervals. The main finding of the 7th Actuarial Review of The National insurance Fund which was tabled in Parliament in February 2003 is that unless the contribut io n rate is increased or changes are made to pension eligibility conditions and how pensions are calculated, the Fund will be depleted by 2029. Such a decline in NIB funds will be due mainly to the projected r eduction in the number of contributors per pensioner from 4.8 in 2004 to only 1.5 in 2062, and the fact that the com bined contribution rale of 8.8 % that ha s existed since 1974, is below the true cost of the NIB benefit package. The repon also indicates that if the Fund is allowed to be depleted, contribu tion rates of 17% in 2030, increasing to nearly 25% in 2060 will be required. The National Insurance programme is an integral part of Government's many social programmes and the large pool of funds that has accumulated over the past 30 years has been instrumental in the country's infrastructural development. As our population ages the pension aspect of National In surance will increase in both value and relevance and thus effons designed to stre n gthen N1B 's future finances now, before more drastic measures are r equired, are timely. In October 2003, the Government of The Bahama5 appoint ed a broad based Commissio n to review th e fi ndin gs and rec ommendations of the 7th A c tuarial Review of the National In s urance Fund and to examine the e n tire r etirement income system in The Bahamas. The Social Security Reform Commission (SSRC) was mandated to recommend ways of: (a) Ensuring that the Bahamas' social security sys tem is rel evant and financially sustainable for future generations; (b) Enabling Bahamians to avoid serio us dis ruption in their living stan dard s upon retirem ent; and (c) Establishing a framework for employers and individuals to provide for the retirement years of their workers and themsel ves The Commission was also rnamJale .... II,; .. .. l .. .................... --.. ---------...

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SoNIA ADDERLEY Senior Oaims Olfker MAVIS FORBES Senior daims Officer WINSTON Moss Assistant Manager JANET BowlEG Assistant Manager HONOUR ROLL Long-Serving & Retired Employees of NIB MURIEL ANDERSON Executive Officer SYLVIA HAMILTON Clerical Supervisor Ill ELSA MUNNINGS Assistant Manager r:. ROSETTA BRENNEN Senior Ooims Officer KERVIN HANOiEU Asst. Mgr. lnogua Office ROSEMARY NEWRY Executive Officer -if. ... ,, .. -_, \< .. .;. JENNlffR 8uruR Senior daims Officer MlcHAEL HUYLER Manager MARCIA NORTM-8AIN Monoger VAN DELANEY Senior Dep. Director AlfRED JOHNSON Senior Audit deri< BETTY 0umN Executive Secretary CORALEE DEvEAux Private Secretary EUGENIA McKENZIE Executive Officer JENNIFER PEET Executive Secretary JACQUEUNE ROU Senior Accounts Oeri< MlcHAEL s. SMlnt Assistant Monoger VERNIS STORR Executive Officer l.oRRAINE STitACHAN Clerical Supervisor Ill l.ENoRA CooPet local Office Manager lH>A l>eANEY Senior Clerical MAluoRJEANN DElANEY Inspector CARol. HILTON Clerical Supervisor Ill ELDORA JAMES Senior Ooims Officer MARION fERNANDER Senior Claims Officer Rose M1UER Senior Inspector ANnioNY ROBERTS Inspector VANRIA JENNINGS Senior Asst. Manager 12 National Insurance Board

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ANGELA lEvfAUX Senior Manager -----.-----== URBAN Ml11ER Inspector loRRAJNE THOMPSON Inspector 1984 2004 CRESCIUA Boo!E Senior Audit derk n ';. -.' .. .... \ ;> ', .;; .. VERDIE fARQUHARSONKRlz Senior Stotisticion __ _.,.... J A YSON Mo m St. Deputy Director Mii.DRE!> BoSFIEW Manager E mtER 8ROWNJAMES daims Officer BENJAMIN FORBES Deputy Acaiuntant MERll.EE Russru Inspector FRANKILEE WtLCHCOMBE Senior Clerical Supervisor EMMA DAWKIN S Claims Officer ELTON GtasoN Accounts Office r ANNTOINETTE HUTOilNSON EVELYN PofnE R-fORBES Yvme ROUE Clerica l Supervisor Ill Senior Private Secretory Senior Clerk Coo HANNA SeniOf Clerk TYRONE MARSHALL Inspector 10 YEARS 1994 2004 RENAUD BETHEL Oerltl WANDA DARVlllf Security Officer Gt.ENN GRAY Clerk r HREN BRAYNEN Senior derk KAREN fORBESCAMP&Ell, Assistant Cashier DENISE HANNA.AoowEv, Clerk I JANA ROUE I AMtont Cashier I I VA1DERINE Mc.Cov Senior Clerk BERNADETTE BUTLER derk/Typist I MoNIQUE GRANT Operator I EMtJONES Clerk I J anitress Insurance Board -13 I

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National Insurance: It's the Law Th e Natio nal Ins urance A c t mak es it mandat o ry th at all e mpl oyers an d self-employ ed p erso n s re giste r and p ay co ntri buti o n s. O n th e 7th Oc to ber 1 974, the Natio n al Ins ur anc e P rogram was imp le mented and. in the fils t ins tan c e r equ ired a ll em p l oyers to regi s ter w i thin t en ( 10 ) d a y s o f th e commence me n t of th e ir b usi n ess and t o e n sure that all the ir emp loyees were also registered Some 18 mo n ths later, on the 5th April 1976, the program was exte n ded t o include Self-Employe d persons Since the inception of the Nationa l Insurance P rogram, t h e rate of contri buti o n p ayment for E mployed P ersons has bee n 8.8%, s h ared b y the emp l oyee 3.4% and employer -;5.4% exce p t wh ere salary is below $60 weekly, the emp loyee l.7% and emp l oyer 7 1 %. In the case of th e Self-Employed P e r sons, the r e are two (2) classes, Self-Emp l oyed (B) which includes licen s ed Taxi D rivers, Share F i shermen, licensed Straw Frui t and Vegetable Vendor s who pay 8.8% and are eligib l e for Industrial Benefits and all othe r Self-Empl oyed P erso n s (A) pay 6.8% and are n2! el.Wble for Industrial BenefiL Th e Natio n al In s ur ance Act requires that contribu ti on due must b e p aid b y the 1 5th of the month following the month for whic h payment is due. P ayme nt r e c ei v ed a f ter t h e du e d ate i s s ubj ec t t o an intere s t c har g e a t p rim e rate. It i s imp o rtant t o n o te that In s pectors of the N atio nal In s uran c e Board have the right o f entry to all pl a ce s of bus i ness to in s pect and reque s t an y document (s ) required for the purpose of verifying that an Employer or SelfEmployed Person is in compliance with the National In s uranc e Act. Howev er, the Inspector does not have the right of access to residential houses therefore we encourage dome s tic employ ees to report to the National Insurance Board where their e mpl oye r i s n o t p a ying Na tional Ins uranc e co ntrib ution s o n th e ir behalf Additionally jitn ey drivers, c on s tru c ti o n work e r s, and farm lab o urer s are en co u r a ge d to visit the N ati onal In s ur anc e B o ard l ocal offi ce s to r e port th e ir em pl o y ers w h o are n o t in co mpli ance with the N atio nal In s ur ance A ct. The foll o w ing are offences und e r the National Ins uran ce A c t and u po n co n viction are subject to the following fines: ( 1 ) A ny insured p erson or any employer who fail s to pay at or within the time pre scribed for the purpose, any con tribution which he is liabl e to pay pursuant to thi s A c t, shall for each such failure be liable on summary conviction to a fme not exc e eding five hundred dollars. (2 ) Any person who willfully delays or ob structs an inspector in the e xercise of any power under s ection 38, s hall be liable on summary conviction to a fine not exceed ing five hundred dollars in the case of a first offenc e and not exceeding one thou sand dollars in th e cas e of a second or subsequent offence. ( 3 ) Any person who -(a) refuses or neglects w ithout reasonable cause to answer any ques tion or to furnish any information or to produce any documents when required so to do; (b) fails to keep or maintain the records; (c) fails to register with the Board, shall be liable on summary convictio n to a fine not exceeding five hundred. dollars and if the offence of which is he convicted is con tinued after the conviction he shall be guilty of a further offence and liable in respect thereof to a fine not exceeding two hundred dollars for each day on which the offe nce is so continued (4) Any employer who deducts or attempts to deduct or otherwise recovers or attempts to recover the w hol e or any part of the contribution of the employer in respect of any person from the wages of such person shall be liable on summary conviction to a fine not exceeding five hundred dollars. (S) Any person who -(a) furnishes information to the Board with respect to contributions and; ( i) knowingl y makes any false statement or false repre sentation ; or ( ii ) produces or furnish es or causes or knowingly allow s to b e produced or furnished, any document or information which h e know s to be fal s e in a material particular, shall be liable on summary conviction to a fme not exceeding two thousand five hundred dollars or to imprisonment for term not exceeding twelve months or both. (6) Any employer who ( a ) dismiss es an employee; (b ) threate ns to dismiss or adverse l y affect the employment of an employee or ( c) alters the position of an emplo yee to hi s prejudice, b y reason of the circumstance s that the employee ( i ) has cooperated with any officer or inspector of th e Board in furnishing information required for the admini s tration of this Act; (ii) has made appli cation for an enquirt.>d about any enti tlements or obligations under this Act pertaining either t o the payment of contributions or the entitlement to a ben e fit or assistance payment; or (iii) has appeared as a witness or has given e viden ce in any proce eding under this Act, shall be liable on summary conviction to a fine not exceeding one thousand dollars or to imprisonment for a term not exceeding six months or both. Recent Amendments to the Notional Insurance Act, 1972 Earlier this year, the Upper and Lower Hou s es of Parliament passed the 2004 Amendments to the Natio nal Insurance Act. The provisions of one Regulation 5 shall be "deemed to have come into operation on January 1, 2002," while all oth ers shall come into operatiop on December 6, 2004. The new amendments provide as follows FETUS VIABLE 4 WEEKS SOONER The definition of "confinement", found in Regulation 2, will be changed from meaning labour resulting after 28 weeks, to labour resulting after 24 weeks. DAIL Y NOT WEEKLY PAYMENTS Regulation 36 will allow payment of Maternity Benefit to be asses s ed on a daily rate, as oppo s ed to the current weekly rate. This mean s that a woman who works up to her time and has the baby on a Wednesday, will get paid for the rest of the days in that week. BROKEN MATERNITY PERIOD ALLOWED A good number of babies are born wi th medical problems which n ecessitate them remaining in hospital after their moth ers have been discharged. Where the hospital stay is for an extended period, some mothers choose to return to work so as to keep portions of their Maternity Leave to care for and bond with the baby when he is eventually discharged. The prob lem in th e past bas been that Maternity B enefit stops and will not be re-instated if a woman return s to work a t any time or for an y l e ngth of time during her payment period. Regulation 37 14 National Insurance Board '! '. '\,. .., .: 4 I f&., will fix this. The Director will be given the power to approve the (broken) paymen t of benefit to a woman in such an instance. The balance of the benefit payments can be paid when the mother resume s her l eave to take care of the child, provi ded that it is within 26 weeks of the actual date of co n finement. BENEFIT PERIOD MAY EXTEND TO 19 WEEKS Currently the Maternity Benefit period is 13 weeks. lo the past, whe r e illne s ses arise out of the confinement resulting m further incapacity the woman had to claim Sickness Benefit. However, with the change in the rate of payment for Maternity Benefit from 60 % to 66 2/3% a payment of Sickne s s Benefit 60 % would result in her loss. The Regulation has been amended to allow for the Maternity Benefit period to be extended up to six weeks. As a result of complication arising our of confinement. BENEFIT PERIOD CAN EXCEED 15 WEEKS Previously, the Maternity Benefit period could be extended from 13 weeks to 15 weeks where a woman stopped work six weeks prior to her expected date of confinement but her actu al date of confinement is delayed. The new amendment allows for the payment period to be extended by one week fo r each week that confinement is de l ayed. WOMAN DIES, BENEFIT STILL PAID Where a wo man dies d uring her benefit payme n t period, the unpaid portion of he r entitlement shall be paid in a single sum to the guardian of the newborn child. -=.''-' MATERNITY BENEFIT: 66 213% The Employment Act, which came into effect almost two years ago, requires emp l oyers to pay females only 33 1/3% of their average insured income while qualifying for maternity leave with pay. Natio nal In surance, however only paid 60% of the average insured income, thus creating a deficit. Regulation 38 has been amended to allow for the rate of payme n t to be increased to 66 2/3%. This is the only amendment that will be retroactive, allowing women who gave birth and were paid the Benefit since January 1, 2002 to be paid the difference. This amendment will cost NIB some $1.5 million in retroac tive payments in the first instance and a further $745,000 every year after. HUSBAND'S SO QUALIFIES FOR GRANT In 1999, the Regulations were amended to allow women who had paid at least 50 contributions at any time during their work lives even though n ot qualifying for the Maternity Benefit, to be paid the Grant. The Regulations have been further amended to allow the contributions of a husband to qualify his wife to receive the Grant. The husband's co ntribu tio n s must be such that it wou l d satis fy the test periods in place for the award of the benefit. That is, he must have paid at le as t 50 contributions into the National Insurance Programme since it started in 1974; AND h e must have paid and/or been credited with at least: i) 26 contri bu tio n s in the 40 weeks immediately before the week hi s spouse has the baby ; OR ii) 26 contrib ution s in the contribution year immedia tel y pre ceding the year the baby i s born a.i :J lJ Ir I

PAGE 15

PREPARING FOR RETIREMENT Plan ahead. Save early. Save often. Preparing for retirement sho uld s tart as soo n as possible right now if not sooner. It is easy to put it off until after you get married aft er you buy a h ouse, after whatever is coming up next. Every month you delay saving for retire ment wiJJ cut down significantly the total sav ings you will h ave in old age. I n recent times there bas been more and more talk abo u t retirement. E very where one turn s there is information about the importance of saving money for a comfortable and secure retire ment. The roa d to a comfortable and secure r etirement encompasses a variety of ingredi ents. Although money is a very large part of the equation, other ingredients are needed for a happy and productive life after one stops working. Experts say you need between 75% and 80% of your pre-retirement income to maintain your standard of living. Therefore when preparing for retirement one s hould detemiine his/her retirement income sources and likely amounts. The four major elements of one's retirement income sources are benefits from employee pension plans, savings and invest me nt s, social security (National Insurance) benefits and family support. Pre sently in the Bahamas, it is not mandato ry that employers have employee pension plans. Hence, many persons will find them selves in the predicament of having only one or two of the four major elements. Some pen sions are funded by the employer while others may require the employee to contribute as well. Priv ate pension plans can offer a variety of benefits and payment options. Therefore it is recommended that one educates himself/herself before deciding on a payment option. This ensures that the option chosen is best suited for their present lifestyle. A pen s ion pays a monthly benefit at retirement based on salary and the number of years worked for the company. This benefit contin ues for the rest of your life, and will probably provide survivor benefits as well. In reality only a smal l percentage of the population bas funds put away as savings or fixed in investments. Many private insurance companies and banks offer attractive retire ment savings packages that would greatly ease the burden and stress of putting away funds oo a monthly basis towards those gold en years. Presently, to be eligible for a NIB Retirement pens i on one must be 65 years or older (a reduced pension is payable from age 60) and have at least 150 weekly (3-years) contributions. Unfortunately for many per sons, thi s will be the only source of income in their retirement years. National Insurance was never intended to be the sole source of income needed in retirement. To ensure a comfortable retirement, the Nati onal Insurance Retirement Benefit should be com bined with saving s and pensions. All employed and self-employed persons should be s aving for their retirement on a personal basis and through employer-sponsored plans or other retirement plans Although determining r etirement income sources and amounts i s important determin ing one's expenses during retirement is jus t as important. This will determine how much i s availabl e for s pending Some pre-retirement expenses, suc h as mortgages loan s and credit card bills, s hould be paid off prior to retire ment. H oweve r pre-retirement expenses such as utilities food never go away. The amount of money needed for expenses will depend largely on the lifestyle one tends to lead. Since many p eople are defined by their careers, retirement can be a depressing and challenging feat. Retirement can lead to a period of social i solation. Therefore plan ning in terms of developing other interests and making gradual c hanges can great l y assist in boosti n g self-esteem during this transition al period. Many psychologists recommend retiring gradually, going to a part time sched ule or doing consulting work, before stopping work altogether. The new free time can be spent investigating new bobb i es or redi scov ering old ones. Retirement consists of two distinct phases. The first phase cons i sts of years during which one is healthy and living an independent life. The second consists of the less active years, when your health may n9t be as good and one may require assistance with daily life activi ties. Phase two can be m u ch more expensive than phase one because of high heal t h care costs and longer life. Some aspects of health are uncontrollable since disease and acci dents can affect the healthiest of us. However with proper diet and exe r cise now, this does no t have to be the case. Keeping the effects of stress to a minimum and going for regular chec k -ups and screenings can also help to combat this prob l em. Key tips to healthier living prior to and dur ing retirement Eat a variety of foods. Balance your food intake with p h ysical activity maintain or improve your weig ht. Choose a diet with plenty of grain prod ucts, fruits and vegeta b les. Choose a diet low in fat, saturated fat and cho l esterol. Choose a diet moderate in sugars. Choose a diet moderate in salt and sodium. If you drink alcoholic beverages, do so in moderation. P h ysical health is only part of the picture. Mo n i t oring mental and intellectual health i s important also. Depression and social isola tio n are major concerns of retirement. By keeping the mind stim ul ated wi t h activities, these problems would have less of an effect during the retirement years. Good friends of all ages can be a huge asset during retireme nt. Also, developing and maintaining warm fam ify relationshi p s can inc r ease one's sense of belonging, well-being and stability in a world where friends can move away and life i s con stantly changing. Many find retirement as a time of spiritual need. Exploring one's spiri tual needs through p r ayer and meditation can generate a strong sense of p eace, will and strength during this period. Another aspect of retirement, is determining the fate of one's estate or possessions after departing this life Preparing a will before your untimely demise can assist in alleviating and/or eradicati n g the many conflicts, trials, and hardships that can occur amongst loved ones. lo preparing for retirement, many employers periodically offer p re-retire ment seminars. While these seminars are informative and needed they are not timely, in that many com panies wait until their employees are a few month s away from retirement. At this point the information may be a bi t late for persons to capitalize on any tip s received for a smooth transition into r etirement. Hence find out from a s upervisor whether or not you oan attend a seminar early in your career so you will be well prepared for those "glorious golden years". SUMMARY: Preparing for Retirement Plan ahead Save early Save often Detennine retirement income sources and amount Detennine expenses Engage in activities/Develop other inter es ts Make gradual changes Eat right and exercise Get regular check-ups and screenings Monitor mental and intellectual health Explore spiritual needs Maintain family/friend relationships Prepare a will Attend retirement seminar early in caree r Come sail with us on BOAT CRUISE aboard the CATAMARAN YELLOW BIRD from Woodes Rodgers Wharf on Friday, November 12, 2004 Boarding TI me: 7 : 00 p m Sailing Time: 8:00 p .m. National Insurance Board -15

PAGE 16

National Insurance: It's the Law The National In s ur ance Act makes it man d atory that all em p loyers and s elfemp l oyed persons r egist e r an d pay contri b utio ns. O n the 7th O ctobe r 1974 the Natio nal In s ur ance P rogram was imple m en ted and in the first ins tan ce, requir ed all employers to regis t e r within ten (10) days of the commence me n t of their b u siness aod to ensure that all their employees we r e also registe r ed. Some 18 months later on the 5th April 1 976 the program was exte n ded lo in clude Self-Employed pe r so n s. Since the inception of the National Insurance P rogram, the rate of contributio n payment for Emp loyed P ersons bas bee n 8.8%, s h ared by the emp l oyee 3.4% and emp l oyer 5.4% except where salary is below $.60 weekly, the employee 1. 7% and e m p l oyer7.1%. In t h e case of t h e Self-Employed P ersons, there are two (2) classes, Self-E mp loyed (B), whic h i ncl u des licensed T axi Drive r s, Share Fishe rm en, licensed Straw, F ruit and Vegetable Vendors who pay 8.8 % and are eligible for Industr ial B enefits and all o th er Self-Emp l oyed P ersons ( A) pay 6.8% and are nfil for Industrial Benefit. Th e Na tional Insurance Act requir es that contribution due m u s t b e paid b y th e 1 5th of the month following the month for whi c h p ayme nt is du e. P a ym ent received after the d ue d a te i s s ubject to an in te rest c har g e a t prim e rate It is imp o rtan t to n o t e th a t Ins p ec t o r s of th e N ati onal In s uran c e B o ard have the righ t o f entry t o all pl ace s o f bu s i ne ss t o inspect and reque s t any d o cument(s) required for the purp o se of v e rifying that an Employer or Self Employed Person i s in compliance with the National In s urance Act. However, the Inspector does not have the right of acces s to residential houses therefore we encourage domestic employees to report to the National Insurance Board where their emplo yer i s n o t p a ying National In s uran c e c ontrib uti o n s o n th e ir b e h alf Add itio n a lly, j itney dri ve r s, c on s tru c ti o n w o rk ers, and farm labo ur ers are encour a ged to vis it th e N ati o nal In s ur ance B o ard l ocal offices t o r epo rt the ir e m pl oyers wh o are not in compli ance with th e N a ti o n a l In s ur anc e A ct. Th e fo ll owing are offe n ces und e r the National In s ur anc e A c t aod upon conviction are subject to th e foll owing fines: (1) Any insured p erson or any employer who fails to pay at or within the time prescribed for the purpose, any contribution which he is liable to pay pursuant to this Act. shall for each suc h failure be liable on summary conviction to a fine not e x ceeding five hundred dollars. ( 2 ) Any p e rson who willfully delay s or obstructs an inspector in the exerci s e of any power under s ection 38, shall b e liable on summary conviction to a fine not exceeding fiv e hundred dollars in the case of a first offen c e and not e xceeding one thousand dollars in the cas e of a s econd or subs equent offence. ( 3) Any p e rson who (a) refuses or neglects without reasonable cause to answer any question or to furnish any information or to produce any documents when required so to do; (b) fails to keep or maintain the records; (c) fails to register with the Board, shall be liable on summary convictio n to a fine not exceeding five hundred. dollars and if the offence of which is he convicted is con. tinued after the conviction he shall be guilty of a further offence and liable in respect thereof to a fine not exceeding two hundred dollars for each day o n which the offence is so continued. ( 4) Any employer who deducts or attempts to deduct or otherwise recovers or attempts to recover the who l e or any part of the contribution of the employer in respect of any person from the wages of such person shall be liable on summary conviction to a fine not exceeding five hundred dollars. (5) Any person who -(a) furnishes information to the Board with respect to contributions and; ( i) knowingly makes any false statement or fals e repre sentation; or ( ii ) produces or furnishes or caus es or knowingly allows to be produced or furnished, any document or information which he knows to be false in a material particular, shall be liable on summary conviction to a fine not exceeding two thousand five hundred dollars or to imprisonment for term not exceeding twelve months or both. (6) Any employer who (a) dismiss es an employee ; ( b ) threatens to dismi ss or advers e l y affect the emplo yment of an employee or ( c ) alters the position of an employee to his prejudice b y reason of the circumstances that the employee ( i ) has cooperated with any offic e r or inspector of the Board in furnishing information required for the administration of this Act; (ii) has made application for an enquired about any enti tlements or obligations under this Act pertaining either to the payment of contributions or the entitlement to a bene fit or assistance payment; or (iii) has appeared as a witness or has given evidence in any proceeding under this Act, shall be liable on summary conviction to a fine not exceeding one thousand dollars or to imprisonment for a term not exceeding six months or both. Recent Amendments to the Notionol lnsuronce Act, 1972 Earlier this year the Upper and Lower Houses of Parliament passed the 2004 Amendments to the National Insurance Act. The provisions of one Regulation 5 -shall be "deemed to have come into oj:>ei;ation on January 1 2002," while all oth ers shall come into operation on December 6, 2004. The new amendments provide as follows. FETUS VIABLE 4 WEEKS SOONER The definition of "confinement", found in Regulation 2 will be changed from meaning labour resulting after 28 weeks, to labour resulting after 24 weeks. DAILY NOT WEEKLY PAYMENTS Regulation 36 will allow payment of Maternity Benefit to be assessed on a daily rate as opposed to the current weekly rate Thi s means that a woman who works up to her time and has the baby on a Wednesday will get paid for the rest of the days in that week. BROKEN MATERNITY PERIOD ALLOWED A good number of babies are born with medical problems which necessitate them remaining in hospital after their moth ers have been discharged. Where the hospital stay is for an extended period, some mothers choose to return to work so as to keep portions of their Maternity Leave to care for and bond with the baby when he is eventually discharged. The problem in the past has been that Maternity Benefi t stops and will not be re-instated if a woman returns to work at any time or for any length of time during her payment period. Regulation 37 14 National Ins urance loarcl '.> (. I I ',,, '... will fix this. The Director will be given the power to approve the (broken) payment of benefit to a woman in such an instance. The balance of the benefit payments can be paid when the mother resumes her leave to take care of the child, provided that it .is within 26 weeks of the actual date of con finement. BENEFIT PERIOD MAY EXTEND TO 19 WEEKS Currently the Maternity Benefit period is 13 weeks. In the past, where illnesses arise out of the confinement resulting in further incapacity, the woman had to claim Sickness Benefit. However, with the change in the rate of payment for Maternity Benefit from 60% to 66 213%, a payment of Sickness Benefit 60% would result in her loss. The Regulation has been amended to allow for the Maternity Benefit period to be extended up to six weeks. As a result of complication arising our of confinement. BENEFIT PERIOD CAN EXCEED 15 WEEKS Previously, the Maternity Benefit period could be extended from 13 weeks to 15 weeks where a woman stopped work six weeks prior to her expected date of confinement but her actu al date of confinement is de l ayed. The new amendment allows for the payment period to be extended by one week for each week that confinement is delayed. WOMAN DIES, BENEFIT STU.,L PAID Where a woman dies during her benefit payment period, the unpaid portion of her entitlement shall be paid in a single sum to the guardian of the newborn child. MATERNITY BENEF I T: 66 213% The Employment Act, which came into effect almost two years ago, requires employers to pay females only 33 1/3% of their average insured income while qualifying for maternity leave with pay. National Insurance, however, only paid 60% of the average insured income, thus creating a deficit. Regulation 38 has been amended to allow for the rate of payment to be increased to 66 2/3% This is the only amendment that will be retroactive, allowing women who gave birth and were paid the Benefit since January I, 2002, to be paid the difference. This amendment will cost NIB some $1.5 million in retroac tive payments in the first instance and a further $745 000 every year after HUSBAND'S S O QUALIFIES FOR GRANT In 1 999 the Regulations were amended to allow women who had paid at least 50 contributions at any time during their work lives, even though not qualifying fo r the Maternity Benefit, to be paid the Grant. The Regulations have been further amended to allow the contributions of a husband to qualify his wife to receive the Grant. The husband's contributions must be s uch that it would satis fy the test periods in p l ace for the award of the benefit. That is, he must have paid at least 50 contributions into the National Insurance Programme since it started in 1974; AND he must have paid and/or been credited with at least: i) 26 contributions in the 40 weeks immediately before the week his spouse has the baby; OR ii) 26 contributions in the contribution year immediately pre ceding the year the baby is born. d "' .. ,,

PAGE 17

PREPARING FOR RETIREMENT Plan ahead. Save early. Save often. Preparing for retirement sho uld start as soo n as possible right now if not sooner. It is easy t o put it off until after you get married, afte r you buy a hou se, after whatever is coming up next. Every month you delay saving for retire ment will cut down significantly the total sav ings you wiJI have in old age. I n recent times there has been more and more talk abo ut retirement. Everywhere one turns there is informat io n about the importance of saving money for a comfortab l e and sec ure r etire ment. The road t o a comforta ble and secure retirement encompasses a variety of ingredi ents. Although money is a very large part of the equation, other ingredients are needed for a happy and productive l ife after one stops working. Experts say you need between 75% and 80% of your pre-retirement income to maintain your standard of living. Therefore when preparing for retirement one should detemiine bis/her retirement income sources and likely amounts. The four major elements of one's retirement income sources are benefit s from employee pension plans, savings and invest ments, social sec urity (National Insurance) benefits and family s upport. Presently in the Bahamas, it i s not mandato ry that employers have employee pension plan s. Hence many person s will find them selves in the predicament of having only one or two of the four major elements. Some pen s ions are funded by the employer while others may require the employee to contribute as well. Private pension plan s can offer a variety of benefits and payment options. Therefore, it is recommended that one educates himself/herself before deciding on a payment option. Thi s ensures that the option chosen is best suited for their present lifestyle. A pen sion pays a monthly benefit at retirement based on salary and the number of years worked for the company. This benefit contin ues for the rest of your life, and will probably provide survivor benefits as well. In reality, only a small percentage of the population bas funds put away as sav ings or fixed in investments Many private insurance companie s and banks offer attractive retire ment savings packages that would greatly ease the burden and stress of putting away funds on a monthly basi s towards those gold en years. Presently, to be eligible for a NIB Retirement pension one must be 65 years or o lder (a reduced pension i s payable from age 60) and have at lea s t 150 weekly (3years) contributions. Unfortunately for many persons, this will be the only source of income in their retirement years. National Insurance was never intended to be the sole source of income needed in retirement. To ensure a comfortabl e retirement, the National Insurance R etirement Benefit should be combined with savings and pensions. All employed and selfemployed persons should be saving for their r etirement on a personal basis and through employer-sponsored plans or other retirement plan s. Although determining r etirement income sources and amounts is important, determin ing o ne's expenses during retirement i s just as important. This will determine how mu ch is available for spe nding. Some pre-re tirement expense s, s u ch as mortgage s, loan s and credit card bills, s hould be paid off prior to retire ment. H owever, pre-retirement ex pen ses such as utilities and food never go away. The amount of money needed for expenses will depend larg e ly on the lifestyle one tends to lead Since many people are defined by their careers retirement can be a depressing and challenging feat. Retirement can lead to a period of social isolation. Therefore, plan ning in terms of developing other interests and making gradual changes can greatly assist in boosting self-esteem during this transitional period. Many psychologists recommend retiring gradually, going to a parttime sched ule or doing consulting work, before stopping work altogether. The new free time can be spen t investigating new hobbies or rediscov ering old o n es. Retirement con sists of two distinct phases The first phase consists of years during which o n e i s healthy and Jiving an independent life. The second consists of the less active years, when your health may nQt be as good and one may require assistance with daily life activi ties. Phase two can be muc h more expensive than phase one because of high health care costs and longer life. Some aspects of health are uncontrollable, since disease and acci d ents can affect the healthiest of u s. However with proper diet and exercise n ow, this does not have to be the case. Keeping the effects of stress to a minimum and going for r egular check-ups and screenings can also help to combat this problem. Key tips to healthier living prior to and dur i n g retirement: Eat a variety of foods. Balance your food intake with physical activity maintain or improve your weight. C h oose a diet w i th plenty of grain prod ucts, fruits and vegetables. Choose a diet low in fat saturated fat and cholesterol. C h oose a diet moderate in sugars. Choose a diet moderate in salt and sodium. If you drink alcoholic beverages, do so in moderation. Physical health is o nl y part of the p i cture. Moni t oring mental and in te ll ectual health is important also. Depression and social isola tion are major concerns of retirement. B y keeping the mind stim ul a ted with activities, these pro b lems would have less of an effect during the retirement years. Good friends o f all ages can be a huge asset during retirement. Also, developing and maintaining warm fam ily rel ationships can increase one's sense of belonging, well -being and stability in a world where friends can move away and life is con stan tly changing. Man y find r etirement as a time of spiri tual need. Exploring one's spiri tual need s through prayer and meditation can generate a strong sense of peace, will and stre ngth during this period. Another aspect of retirem ent, is determining the fate of one's estate or possessions after departing this life. Preparing a will before your untimely demise can ass ist in alleviating and/or eradicating the many conflicts trials, and hardship s that can occur amongst loved ones. In preparing for retirement, many employers peri odic al ly offer preretiremen t seminars. While these seminars are informative and needed, they are not timely, in that many com panies wait until their employees are a few months away from retirement. At this point the information may be a bit late for persons t o capitalize on any tips received for a smooth trans i tion i nto retirement. Hence find out from a s upervi sor whethe r or not you oan attend a seminar early in your career so you will be well prepared for tho se glorious gold en years SUMMARY: P reparing for Retirement Plan ahead Save early Save often Determine retirement income sources and amount Determine expenses Engage in activities/Develop other: inter es ts M ake gradual changes Eat right and exercise Get regular check-ups and scree ning s Monitor mental and intellectual health Explore spiritual needs Maintain family/friend relationships Prepare a will Attend retirement seminar early in career Come sail with us on BOAT CRUISE aboard the CATAMARAN YELLOW BIRD departing from Woodes Rodgers Wharf on Friday, November 12, 2004 Boarding Time: 7 :00 p.m Sailing Time: 8:00 p .m National Insurance Board -15

PAGE 18

NATIONAL INSURANCE PROGRAMME From pg. 8 Mr. George Mackey, M.P., and Mr. Balasubramanian continued as Chairman and Acting Director, respectively. Mr. Nelson Cooper, who was appointed as Chief Accountant in December. 1981, was promot ed to Financial Controller in 1983. Contributions collected over the three year p eriod amounted to some $77 million. Over $3 4.8 million wa s paid o ut a s benefits/as s i s tance and the Reserve Fund s to o d at some $ 161 727 ,914. 1984 1986 This period was one of the most active and e xciting in the life of the young" organiza tion. I t saw amendments to both the Contributions and Benefits Regulations; further recruitment of more highly trained, skilled professionals; significant growth in the Reserve Fund; further expansion of service delivery nationally, and the creation of a new N1B Branch. Specifically, this triennium saw: Amendments to the Contribution Regulations resul ting in: The abolition of the six wage groups/bands and of the stamp method of p aying contributions; raising of the weekly ins urable wage ceiling from $110 to $250; classifying self-employed persons into two groups "Class B", eligible for Indu strial Benefits and ''Class A", not covered under the Industrial Benefits B r anc h ; and calculation of contributi ons as a percentage of the actual wage/income. Amendments to the B enefits Regu l atio n s resulting in: The liberalizing of qualifying conditio n s for the award of Sickness, Maternity, Retiremen t and Survivors Ben efits; introduction of the Maternity Grant; and consolidation of a number of National Insurance Regulations. N1B mounted a massive national public education campaign prior to the introduction of th e new contribution system on 2nd July 1984. A Telephone Hot-line Service was intro duced in July 1984. Tw o weekly Public Information p r o grammes -a half-hour radio broadcast and a newspaper column were introduced on 12/9/1984. N1B hosted the Fourth Meeting of the Head s of the Intern a tional Social Security Association s Member Organization s in the English-Speaking Caribbean in November 1984. Skilled professionals recruited during this triennium incl uded Mr. Lennox M c Cartne y who joined as Computerization Project Manager on 2nd June, 1986; Mr. S.V. Narayanan who joined as Consultant Actuary on 26th September, 1985 and Mr. Colin Wats on who was appointed Training Consultant in July 1986 N\lf,i onal Board Establishment of new comniunity-based service centres and expans ion and rel oca tion of existing offices in Cooper's Town, Abaco, o n 25/2/19 84; in Pyfrom's Addition in eru.tem New Providence on 20/11 1 985; in Rock Sound Eleuthera on 9/3/1985; and on East Street South New Providence on 7110/1986. Additionally ground-breaking ceremonie s were held in Freeport Grand Bahama for the proposed New NIB s Freeport Office Complex on 10/10/l 986. The s econd Actuarial Review was com pleted in 1984. The Medical Benefits Branch was created o n 1/1/1985 with an endowment of $40.6 million. During March, 1984, the head of the International Labour Organization s Social Security Department paid an official visit to The Bahamas at the request of the Minister. ADMINISTRATION & FINANCE The Honourable Hubert Ingraham M.P., was r e placed as Minister responsible for National In surance by the Honourable Darre ll Rolle, M.P., in Octol5er, 1984. Mr. George Mackey, M.P., continued to serve as Chairman and Mr. A. Srinivasan s ucceeded Mr. Balas ubramanian as Acting Director in December, 1985 During this triennium, contributions collected amounte d to over $131.6 million; over $63.1 million was paid o u t as benefits/assis tance and the Reserve Fund stood at over $306.7 million. 1987 1989 This was a period of considerab l e transition, which saw the organization experiencing much internal changes coupled with a tremen dous growth spurt typical of the early teen years. Major events during this period in clud e: Constructio n of seven (7) Community H ealth Clinics o n New Prov i dence and the Family Isl ands with funds ($10 million) from the Medical Benefits B ranch The multi-millio n dollar Freeport Local Office Comp l ex was comple ted and offic i ally opened in January 1989. This Complex hous es most of the Freeport-based government departments in addition to the Freeport Local Office. During 1 989, N1B purchased "Alexander House" on Robinson Road. A new Local Office was opened in Long Island -Simms, and the Harbour I s l and Local Office was relocate d to new s paciou s (ground-le vel) accommodations. A massive publi c education c ampaign was mounted n atio nally on the proposed National Health Insurance Plan. ADMINISTRATION & FIN,<\NCE In Julj!e. 1987, the Honourable George Mackey, M P ., replaced Darrell Rolle as Mini s ter of Hous ing And National Insurance. Dr. B.J. Nottage, M.P., se rved as Chairman from June 1987 to December, 1988. He was replac Je4 by, his Kendal Nottage, M.P., in January 1989. Mr. Lennox McCartney wa s appointed Director in May, 1987 -he resigned from this pos iti o n in Augus t 1988; Mr. Nelson Cooper was appointed Acting Director as of that date. During this triennium contributions collect ed amounted to over $168.3 million; over $84.8 million was paid out as Benefits/Assistances and the Reserve Fund stood at $448.6 million at the end of 1989. 1990 1992 A number of s ignifi can t developments took place during this triennium, chief being the 1992 general elections whic h saw a "c hanging of the guard" after 25 years and consequently a new Minister and Chairman for NIB. Major achievements during thi s period included: Much progress in the area of computeriza tion ; the registration/contributio n s and Short Term B enefit systems came "on line". Improved communicatio n s by the e n d of 1992; most of the Local Office s were eq uipped w i th telefax machines. Imp roved accommodations -most of NIB's New Provid ence-based offices wer e relocated during 1 991 -the Inspectorate and Prosecuti ons Departments to Alexan d e r House and the Corporate Office and the New Provide n ce Local Office to the new Head Office in J u mbey Village. Con structio n commenced on a ne w office com p l ex in Fox Hill. Estab lishmen t of a S u bO ffice in Salina Point, Acklins on 19th March, 1992. Offi cial opening of the Head Office in May 1992. The strengthening of international link ages; N1B was granted membership in the lnteramerican Conference on Social Services ( CISS). Increases in the minimum rate payable for th e General Benefits and on all monthly Assistances effective 1st December, 1991 and 1st Aui ust 1992; viz: ffiinimum payment for Invalidity, Retirement and Adult Survivors' Benefits fixed at $150 and $190 per month respective ly. Rate of payment for Surviv o rs' Benefit to dependent children ranged from $75.27 to $88.27 per month. -Payment of monthly Invalidity and Survivors' Assistance and the Old Age Non Contributory Pension was increased to $120 and $160, respective l y; and Sickness Assistance was increased to $27.69 and $36.92, l 1 1 ADMINISTRATION & FINANCE This triennium brought major and hi s toric changes in thi s area chief being the appoint ment of the very first woman Member of Parliament as Minister of the new Ministry of Social Services, National I nsurance and Housing. The Honourable Janet Bostwick M.P., was appointed in Augus t to head a greatly expanded Ministry, ending George Mackey's 15 year tenure with the Board. Mr. James P inder, M.P., was appo inted Chairman ofthe Board of Directors. Mr. Nelson Cooper was confirmed as Director, and Mrs. Ja c queline Beth el was promoted to Acting Deputy Director. This triennium s aw NIB's Total Reserve s reach and pa ss the halfa-billion-dollar mark. As of 31st December 1992 NIB's Reserve Fund stood at over $604 3 million. Over $189.6 million in contributions was collected over this period and over $117.7 million was paid o ut as Benefi ts/Ass i stance. 1993-1995 This triennium was both a difficult and a stimulating time for NIB. Major achieve ments occurring daring this period included: Establishing, expanding and relocating R egio n al Offices on New Providence -Fox Hill; Abaco -Cooper's T own; G ran d Bahama Eigh t Mile Rock, High R ock and Wes t End. Constru ction began/was p lanned for four (4) additional community H ealth Clinics in Abaco Cooper's Town ; Andros Kemp's Bay; Bimini and San Salvado r The hosting by the National Insu r ance Board of the Sixth American Regional Conference of the ISSA on Paradise I sland, April, 1994. Recognition of the Public Manager's Union -the Bargaining Agent for NIB's Middle Management Cadre in 1993 The Union s ucces s fully held its Firs t Annual General Meeting in J uly 19!)A, and s ucce ss full y concluded negotiations for a new indu s trial agreement in January, 1995. National Insurance e ntered the 100-Day Challenge competition in May, 1994 and was declared the overall winner some 5 0 days later in August, 1994. This competitio n resulted in s ignificant improvements in two specific areas: i ) Short Term Benefit proce ssing; and ii ) Telephone response time. ... .. -. 6on'td on pg.1 1

PAGE 19

NATIONAL INSURANCE PROGRAMME From pg. 16 ADMlNISTRATION & FINANCE The Right Honourable Hubert I ngraham, M.P., Prime Minister. assumed ministerial responsi bili ty for National I nsurance in 1995 He succeeded the Board's second female Minister, the H onourable Theresa Moxey1 ngra h am, M.P., who h ad s u cceeded the Hono ur ab l e Janet B os twi c k M.P ., as Mini ste r Mr. J .M. Pind er, M .P., continued as C h airman of the B oard of D i re c t ors and Mr Nelson Cooper resi g ned the po s ition of Dir ector in November. 1 994. Mrs. Jacqueline Bethel s erved as Acting Dir ecto r from November, 1994, to January 1995 M essrs. Lennox McCartney and Van Delaney were appointed Director and Acting D eputy Director, respec tively, in J anuary, 1995. NIB 's Reserve Fund stood at a little over $731 million at the end of 1995. 1996-1998 Major achievements occurring during this period i nclud e: The purchase and completion of the Wulff Road Complex. The official openings of four new Community Health Clinics in: Bimini; San Salvado r ; Spanish Wells; and Harbour Island The commenceme nt of construction of two (2) additional Community Health Clinics in: Grand Bahama Eight Mile Rock ; and New Providence South Beach. The purchase of Claughton House in New Providen ce. The passage of a bill to amend the Nationa l In surance A c L Key features of these amend ments, which came into effect o n I st January 1999, were: l.An increase in the weekly ceiling on insurable wages from $250 to $400. 2.The introduction of punitiv e measures against employers who fire, demote or penal ire in anyway their employees who request information from the Board on their contribu tions, or who cooperate with the Board 3.An increase in Funeral Benefit from $ 1 ,000 to $1,500. 4.Ao increase in Maternity Grant from $250 to $400; and a relaxing of the qualifying con ditions to allow payme n t to women w h o may have been out of work for seve r a l years, but w h o wou l d have paid at least 50 contributions into National Insurance. 5.The introductjoo of a suppl ementa l pen sion for persons who suffer 100 percent i n dus trial di sabi lity, and as a r esult, require constant care and attendance. 6.An increase of 10 % on R etirement, Invalidity and Survivors' Benefits The increase a t the minimum level was $20.00 7 .The adjustme nt of the ages at which Earl y Retirem e n t Benefit i s paid. The c hanges were as follows: 80% at age 60; 84% at age 61; 88% at 62; 92% at 63; and 96 % at age 64. 8.An inc r ease in the maximum amount pe r sons aged 60 lo 69 years are all o wed to earn while in receipt of Retirement Benefit, from $120 per week, to half the cei lin g on insurable wages -$200 per week 9.A liberalization of conditions, enabling Self-employed persons to continue to work and receive th e ir R etirement Ben efit, provid ed they earn no more than half the ceili n g on insurable wages that is. $200 per week. lO.A lifting of all earnings restrictions on persons age 70 years and o lder. The amend men ts mad e it possible for employed persons t o continue to work, and for self-employed persons t o return to work and receive their Retirement B enefit. regardles s of their income. I I .A re v i s i on of the eligibility conditions for Survivors' Benefit, making it possible for males to qualify in the same way as females. 1 2.Ao increase in the upper age limit from 1 8 years to 21 years for dependents who are full-time students, to receive Survivors' Benefit 1 3.An in c rease in Invalidity, Old Age Non Contributory and Survivors' Assistances for adults, from $160 to $180 per month; and from $36 to $41.54 for Sickness Ass i s tance. The official opening of two new communi ty Health Centres in Harbour I s land and Spanish Well s. ADMINISTRATION & FINANCE The Ri g ht H ono urabl e Hubert Ingraham M.P ., retained mini s terial respons ibili ty for National lns urance; Mr. J.M. Pinder, contin ued as Chairman of the Board of Directors ; and Mr. Lennox M cCn rtn e y continued as Director Mr. Van Delaney was confirmed in the post of Deputy Director. NIB's R eserve Fund stood at $891.6 million* at the end of 1998 (*Unaudited Accounts for the period lst January to 3 lst December, 1998). 1999 2000 Major achievements occurring during this period include: The completion of one additional Community Health Clinic at Eight Mile Rock Gran d Bahama The s u ccess ful and peaceful completion of the first five-year contract with the bar gaining unit for the majority of the Board's staff. The s igning of a con tract between the Board and The Bahamas Government to con struct a residential complex for Police officers in Freeport, Grand Bahama at a cost of $5.3 million. ADMINISTRATION & FINANCE billion d o llar s at the end o f 2000. 2001-2002 Major achievements occurring during this period included: The completion of the clinic at South B each, New Provide nce. The completion of the 7th Actuarial Review of the National Insurance Fund. The r ev iew examined the Fund's cu rrent and pro jected future financial status and made recom mendations for s teps that may be taken to help ensure that NIB r emains solve nt for future generations, while providin g meaningful ben efits to current workers and pensioners. The main findings of the review were: ( a) lf the present contribution rate and bene fit provisions are maintained, the National lnsurance Fund would be exhau s ted in 2029. (b) Should this occur, the contributio n rate would have to be increased to 17% and then g r adually thereafter to over 25% for NIB to continue meeting its benefit commitm e nt s. (c) The average cost of benefits payable over the next 60 years is 15.5 % compared with the current average contribution rate of 8.4%. Following is a s ummary of the key recom mendations made: (a) Review the level of the insurable wage ceili ng and thereafter increa se it annually with rules governing s uch adjustments placed in National In surance Regulation s. (b) Increas e pensions annually in line with changes in the cost of living. (c) Gradually increase the contrib u tion peri od required to qualify for a Retirement pen s ion from 3 to IO years. (d) Gradually increase the number of years over which wages are averaged for calc ul ating pensions so that pension amounts mor e close ly reflect earni n gs over one's career, and not just over onl y the three years with greatest earnings. (e) Consider paying more than just the greater of Retirement and Survivors benefits where the widowed spouse has earned histhe The Honour ab le O.A.T Tommy Tumques1, own pension. M.P., served as Mini s ter of Immigration, (f) Ensure th at the inc ome test applied to Public Service and National Insurance; Mr. n on-ct:mtributory pensioners is a rictly J.M. Pind er, as Chairman of the a dhered to so that only tho se who are truly eli Board of a_nd Mr. Lenno:x gible receiv e ass i s tance payments. McCartney co nunued as Director. (g) Review the terms under which pens ionab l e civil serv ant s participate in th $ National NIB 's R eserve Fund lltood at jus t over one ln st\rance programme with an Objective of . ,,. enacting similar provisions for a ll in s ured per so n s. (h) Initi ate a compre hensive review ofNIB's Act & Regulation s. Thi s review s hould ensure that a ll provision s are relevant to prevailing condition s and that l egisla tion is consiste nt with current practice, intent and other Bahamian law s. (i) Approve and adopt an Investment Poli cy Statement for the investment o f the Board's assets and seek n ew investment avenues for surp lu s funds both locally and a broad. G) Reduce significan tly the amount spent o n administrative expenses from the 19.2 % of contribution income spent in 200 1 to 10% over the medium tenn. (k) Provide to all past and current contribu tors annual contribution statements that indi cate past contributions, their benefit e l igibili ty status and What if any, additional contribu tion s are required to qualify for certain bene fits. (I) Initiate extensive publi c relation s cam paign s aimed at in c reasing general awareness of National Insurance the benefits offered, the need to plan for retirement, and the future c h allenges and reforms that will be required. W h ile no immediate contribution rate increase was recommended the need for future rate increases was stressed. The commencement of a compensation review and manpower needs assessment exercise fo r staff members in the two bargaining units Objective s of the exercise included : To provide NIB with accurate market information for future revi s ions to salary scales; To conduct an audit of the c urrent ranking of NIB jobs; -To ens ure that al l job d escriptions and job charts reflect current structure and account abilities, identifying the key factors that affect the level of each position ; a n d To provide an analysis of NIB functional areas to determine the number of person s needed at the management/ s upervisory and n on-management levels. The completion of the H eadquarters build in g to h9use and facilitate various agencie s and services of the Royal Bahamas Police Force in Grand Bahama. Con'td on pg 18 1 "', National Insurance Board -17 ..

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--NATIONAL INSURANCE PROGRAMME Frompg.17 The completion of the multi-million dollar P oincianna Hill Office Complex, which hous es the Minitry of Health ; and the Thompson Boulevard Complex, which houses the Ministry of Education. I ADMINISTRATION & FINANCE The Hon6urable Theresa Moxey-Ingraham, held ministerial responsibility for National Insurance as Minister of Public Service & Cultural: Affairs through 2001 and into 2002; the Hortourable D. Shane Gibson, assumed responsibility in May 2002 as Minister of Housing & National Insurance. Mr. J .M. Pinder, eontinued as Chairman of the Board of Directors into 2002, with Mr. Philip Davis, M.P., a$surning the role of Chairman in July 2002. Mr. Lennox McCartney served as Director and was responsible for the day-to day operations of the organization. Mrs. V. There s a Burrows joined the Board as Deputy Director; and Royston Jones, Financial Controller and Arlean Strachan, Assistant Director resigned/retired respectively. NIB 's Reserve Fund stood at 1.1 billion dol lars at the end of 2001. 2003-PRESENT Major achievements occurring during this period include: The completion of the compensatio n review and manpower needs assessment exer cise by the Hay Group. As a re s ult of the rec ommendations, the Board and its two Unions began negotiations for staff salary adjust ments and ; manpower initiatives that are expected to tome on stream in the; near. future. Staffing management training, man agement accountability, clear performance stan dards and employee empowerment, are just some pf the keys areas that the reports recommend. The ai:{pointment of the Social Secupty Commissi6n to determine and recommend the way forwa}-d for social security l}Ild a number of other issues. The Commission. was charged with addressing issues containeft in the 7th Actuarial and other associated issues. \ i The purchase by the Insurance Board of tjie JL Building at Blake Road New The official opening of. the Miriam Green Health Centre in Johnson Bay, South Andros. for new community clin ic at Inagua. The passage of the 2004 amendments whic h provides primarily for changes to Maternity Benefit/Grant payment. ADMINISTRATION & FINANCE The Hon ourable D. Shane Gib son remained as Minister; Mr. Philip D avis, M.P. continued as Chairman;. Mr. Lennox McCartney s erved as Director; Mr. Van Delan e y Sr. Deputy Dir ec tor retired; Mr. Ja yso n Moxey was pro-18 National Insurance Board rooted to the p0st of Sr. Deputy Director ; and Mr. Lloyd Cunningham joined executive mana gement as Assistant Director. BENEFITS & ASSISTANCES The National Insurance Board provides nine (9) cash benefit s, four (4) cash assistances and one benefit-in-kind". The benefits are paid in res pect of Sickness, Maternity, Funeral, Retirement Invalidity, Survivorship, Injury, Disablement and Death. The assistances are the Old Age Non-Contributory Pension, Invalidity, Survivors and Sickness. The monthly rate of payment for the Long Term Benefits Invalidity Retirement and Survivors' Benefits varies depending on the total number of paid and/or credited contribu tions, from a minimum of 15 to a maximum of 60 percent of the insured person's average weekly insurable wage or in come The minimum (full) payment, monthly is $230 The weekly rate fo r the Sickness Benefit is 60 percent of the claimant's average weekly insurable wage or income with the minimum and maximum weekly payments are $53.08 and $240 respectively The weekly rate for Maternity Benefit will move from 60% to 66 213% as of December 6 with the minimum and maximum payment at $53.08 and $266.67 respectively The rate of assistance payment is fixed. These have been increased from time to time. The last increase came in January, 2002. Under the Industrial Benefits branch, employed persons or self-employed persons in Class B", who suffer job-related injury or contract job-related diseases, are eligible for Injury Benefit Disablement Benefit and/or Grant, Industrial Death Benefit, Industrial Funeral Benefit, and free Medical Care. Injury Benefit is a weekly p ay ment, paid at a weekly rate of 66 213 percent of the worker's average insured income, with a range of $48.46 per week as a minimum payment, and $266.66 per week as a maximum payment. Disablement Benefit is paid as a percentage of the Injury Benefit based on the degree of disablement caused by the industrial accident. Disability is assessed by a Medical Referee and is expressed in percentages. 1 For disablement assessed at between I and ;24. percent, a grant of $100 is paid for each 'p ercent of disability. For disablement assessed at between 25 and 100 percent, Disablement Benefit is paid as both a one time cash grant, and periodically, as a pen For example a lump sum grant of $500 iid a monthly pension are paid where the disablement is assessed at between 25 and 66 percent. A grant of $1 000 and pension are paid where the disablement is between 67 and 100 percent. REGISTRATION All persons engaging in gainful employment in The Bahamas, whether employed on a tem p orary p robati o nary part time or permanent b a s i s, are required to r egi s ter with National Insurance. Registra t ion sho uld b e effe c t ed ... before or as soon as p oss ibl e after commenc ing work. The registration process involves the assign ment of a number for life which creates an account into which all record of co ntributions and benefit payments will go. Once a number i s assigned the regi s trant doe s not have to regi ste r again. CONTRIBUTIONS Contributions are required for each "contri bution week". Pa yments are based on the wages earned during the week, up to a ceiling of $400. Contributions are to be paid month ly, and s hould be received into the Board by the 15th day of the month following the month they were due. "EMPLOYED PERSONS": Contributions are to be deducted from tlie employed person 's wages before they are paid. Deductions are payable from the very first salary payment even if the worker is serving out a "proba tionary period". Contributions not deducted at the time they were due, cannot be reclaimed fmm employees' future earnings. The employer is solely responsible for payment of arrear s "Wages" includes only basic pay (inclusive of pay in lieu of notice); compensations s uch as bonuses, overtime, severance pay and tips, are not considered wages. Contributions for persons who are paid on a commission basis will be based on the average weekly or monthly wage in the last year, o r the total wage paid in the actual week or month concerned. Contributions for persons paid on a daily or piece work basi s, will be based either on the basic amount paid for sim ilar work or on the total cash amount paid for the actual week or month whichever i s les s. An employed person with a weekly average insured income of less than $60, pays 1.7 % of his/her salary while the emp l oyer pays 7.1 %; and a person with a weekly average insured income of $60 to $400, pays 3.4% while the employer pays 5.4%. "SELF-EMPLOYED PERSONS": There are two classes of Self-Employed persons: "A" and B". Person s in class "A" pay contributions at a rate of 6.8% while persons in Class "B" pay 8.8%, of their average insured income, up to the ceiling of $400. PENSIONABLE CIVIL SERVANTS: Because of the integration of the G overnment's pension plan with the National Insurance pensjon plan, civil servants who are eligible for pensions out of the Consolidat Fund, are required to pay Je ss in to Nation al In s urance for Retirement and Invalidity Benefit s. Their contributions are bas ed on a combination of $ll0 (red uced for the two l o ng term benefits) and $400 ( the in surable wage ceiling for all other benefits). Con seq u e ntly their Retir ement and Invalidity Benefit are lowere than those of other isured persons. PERSONS IN RECEIPT OF RETIRE MENT BENEFIT: A pe r s on ag e 60 to 69, w h o is in receipt of R etirement Benefit may return/continue to wor.k and receive the bene fit as long as he/she earns no more than $200 per week. Additionally, persons age 70 years and older may work and receive Retirement Benefit no matter wha t they earn. ln the case of self-employed person s, however ; they must hav e initially r e tired from, and then returned to gainful empl oyment to qualify. In either case, reduced contributions must be For employed persons only the employer pays his portion of the contributions; in the case of self-employe d persons, the contri bution rates are reduced by 3.4 percent. VOLUNTARILY INSURED PERSONS: Ao unemployed person who previously con tributed to National Insurance may apply for permission to pay contributions voluntarily. Contributions are paid at a rate of 5 percent, of the individual's average weekly earnings, based on bis/her la s t year of employment. Contributions are due before June 30th of each year. Contributions paid voluntarily do not count for Sickness Maternity or any Industrial Benefits. THE APPEALS PROCESS NIB has an appeals provision for claimants and contributors when, in their opinion the Board makes unfavorable decisions regarding them This provision allows individuals to take decisive action which could ultimately change or rescind deci sions o f the B oard; it is comprised of three processes. Firstly, there i s a process that deals with contributions and c la ssifica tion s of in s ured persons. Such cases are heard by a committee of the Board of Directors. The s econd proces s involves an Appeals Tribunal, where any question relating to ben efit or assistance is decided. The Tribunal is a tri-partite body, made up a lawyer as its chairperson, one member to represent the employee's interest, and the other to represent the employer's interest. Members of the Tribunal are independent citizens of The 1 Bahamas. The third process is for medical appeals. In this process, medical questions are deter mined by a Medical Referee who ;is chosen from a panel of medical from the I commuruty. I OFFENCES i The National Insurance Act describes a number of offences for which persops may be charged. These basically concern Contributions and Benefits. Contribution offences are fo r example, non payment of contributions; the: fa ilure b y an employer to provide information on an employee's wage s tatus ; the victimization, by an employer, of an employee wh o cooperates w i th National Ins uran ce; etc. Benefit offences are for example, where a claimant attempts to alter documents ; where a person presents him/herself claiming a benefit to which they are not entitle d; etc. Penaltie s for offences range from a tnimi m urn of six m o nth s in jail o r a fine o f $ 1.0 00, or both. to a maximum of 12 months in jail. or a fine of $2.500. or both

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I l CENTRAL BANK OF THE BAHAMAS ThE NATiONAl INSURANCE BoARd As ThE AdMiNisTRATOR of ThE BAllA.l.As' SociAl SEcuRiTY PROGRAMMME Main Office Freeport Office Telephone: (242) 302-2600 Telephone: (242) 352-5963 Facsimile: (242) 356-4324 Facsimile: (242) 352-5397 I .I I I I I P .O. Box N-4868 P O Box F-42521 L Frederick Street Suite B & C Regent Centre West 1 Nassau, The Bahamas Freeport, Grand Bahamas ( -----_ ,e.e,.ntralbaokball@roal t ... _, __ .. --...-.----------""' 19 f I 1 ""I ., f ._ 'I t 0 l # J I I 1 j t .... c, .,)C;.. ., _ri; .. s:n ":I -S 1:!.., J 1 :'! :i. 'l;:; n ,_ 1:1 L., .r. I "1tr11_c.w .. t,, .. .... .re; . f :i ,,:-1.

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. -C = t.\t THE NATIONAL INSURANCE BOARD on its C 3cm C = Management and Sta.ff of IBM Bahamas Ltd. IBM Bahamas Ltd. = P.O. Box SS-6400 = --= P.O. Box F-42502 = Nassau, Bahamas ----Freeport, Grand Bahama ------. Tel: 323-7350/4 = 1:' : Tel: 352-9751/2 Fax: 323-8944 unununununununuri 20 I TUBE CIRPOMTlll "StirraULlatiJD.g, a:rad Promotl1D.g A :f'fordable :Eiome OW"JD.ershi.p" For :l:"nirthe. r inCormatioI1 abou.t obtai:n.i.Jmg a mortgage, please contact onir offices at the :t"ollowin..g telephone numbers: N.ASS.AU OFFICE RUSSELL RO.A.I:>, C>.AJ. BOX F-42605 ,FREEPORT. GR.AND BA..HA.lv.t:A. TEL: (242) 352-7513/4 FA.X: (242) 352-6478 ABACO OFFICE B & LPLA..ZA. lv.t:.AR.SH H..A.R.BC>UR, P. C>. BOX A.B-20376 B.AHAlv.t:.A.S TEL: (242) 367-5160 FAX: (242) 367-5161

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