Material Information

An explanation of the July 2010 Amendments to the National Insurance Benefit & Assistance and Contribution regulations.
National Insurance Board
Place of Publication:
Nassau, Bahamas
National Insurance Board
Publication Date:
Physical Description:
12 p. ; col. ill. ; 36 cm.
Physical Location:
HBL Archives - Newspaper supplements box


Subjects / Keywords:
Insurance -- Bahamas -- History
Insurance -- Bahamas -- Law and legislation
National Insurance Board -- Bahamas -- History


Newspaper supplement explaining new National Insurance Board benefits.

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University of The Bahamas
Holding Location:
University of The Bahamas
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. An Explanation of the July 2010 Amendments to the. National Insurance Benefit & Assistance, ' NIB pensioners recezve tncreases Some 30,000 pensioners, and several hundred per sons who had babies or who buried lpyed ones on or. after July 1 of this year, re ceived increases or adjustments to their payments in October 2010. The Increases were made possible by the July 2010 amend ments to the National Insurance Benefits Regulations. The amendments provided for in creases to pensions, including long-term benefit and assistance awards currently in payment, and to grants, with effect from July 2010. The increases were designed to provide a reas. onable of the lost value of the pension due to the effects of inflation since the stah of the pension or since the last adjustment. Pensions were last adjusted in 2007, while the last increases to the grants were made in 1999. Adjustments to the Funeral and Mater nity grants were paid in early October; continued overleaf > and Contribution Regulations NOVEMBER 22, 2010 Historical Overview -NIB: 19 .742010 The National Insurance Board (NIB} began operations in October 1974, minister a social security system that would provide workers and their families with basic protection against the loss of employment earnings in the event of sickness, dJ.ildbirth, retirement, invalidity, death, workplace injury (1980), and un-. employment (2009). Under National Insurance, insured contributors are covered for three main t)rpes of contingencies -a. Long-term: Invalidity ._ and Survivors; b. Short-term: Sickness, Maternity (benefit and grant), Funeral and Un employment; and c. Workplace injuries or diseases: In jury, Disablement Medical Care, Industrial Death, and Industrial Funeral. Retirement and Invalidity benefits replace up to 60% of pre-retirement insur. able earnings, and, from 1974 to 2010, were awarded if contributions were made for at least 150 weeks, or approximately three years. In 2010 the maximum pension for someo!fe who paid from inception and who paid on the ceiling was $942.50 per month. Where benefit entitlement, based on number of contributions and average irisurable wages are low, a minimum pension payable to ensure that every pensioner can maintain a basic but decent standard For more information call (242) 325-4653 or E-mail: or visit r f I I I .


' basis fo r N.J. amendmentsSuccessive actuarial reviews of the National Insurance Fund have cautioned that if no change was made to the cot'i.tribution rate, or to the way benefits were awarded and calculated, the National Insurance Fund could be exhausted in the early 2030's. This conclu sion was based largely on the ag ing population and on -the fact that contribution rate, which was fixed at 8.8% for 35 years, and recently increased to 9.8% for some classes of insured workers, was below the true cost of the National Insur ance benefits package : The policy recommendations contained in those Reviews and in the 2005 report of the Social Secu.rity Reform Commission were consequent}y aimed at both strength ening the long-term solvency of the Fund, and ensuring that National Insurance con tinues to provide relevant, equitable and affordable benefits for future generations of Bahamian workers. National Insurance demonstrated its commitment to this lat, ter mandate with the addition of an unem ployment benefit in 2009'. It also took on administrative responsibility for the newly introduced Chronic Prescription Drug Plan in 2010. In answer to the recommendations in. the Actuarial Reviews and the Pension Reform Commission's report, an extensive set of amendments to the National Insurance Contribution and Benefit Regulations were passed in Parliament in July 2010. Going forward, these amendments will: 1. Enhance the sustainability of the Fund; 2. Bring added inconie security to pen sioners, widows, and widowers, 3. Enhance the relevance of the National Insurance program to higher paid workers, pen sionable civil servants and workers in the hospitality sec tor; and 4. Provide additional benefits for persons. NIB pensions increased in October (continued from front page) adjustments to pensions were were paid during the October 2010 pay period. Adjustment percentages for the long term benefits were determined by the start date of each pension, while the increase to assistance was one flat rate. Increases/ adjustments Mate-rnity Grant was increased from $400 to $430. Women who were paid Maternity Grant in respect of the delivery of a live baby on o:r after July 1, 2010, were given a retroactive payment hi early ber in the amount of $30 fo. r each live birth. Funeral Benefit was increased from $1,500 to $1,600. Claimants who received Funeral Benefit to the funeral ex penses of an insured person who died on or after July 1, received a retroactive payment of $100 in early October. Long-Term Benefits and Assis tance: Most pensioners received two pay. ments in October'"" the regular m onthly payment at the new rate and another pay-' nient representing back payment of the increase f _or July, August and September. NIB: 197420 10 continued from front page ment, Invalidity, Funeral and Sur vivors' benefits. The level of coverage for self-employed persons in Class A will improve when the relevant amendment takes effect in J aim ary 2011. National Insurance also provides monthly assistance to the elderly and in valid who never paid contributions pr not enough to qualify for a contributory ben efit but are deemed to be nee4y. Similarly, a monthly assistance is provided for the dependent survivors of an uninsure4 deceased breadwinner who are in need. In order to pay benefits and assistance, NIB collects contributions from workers of the country. Contributions on employ ment earnings up to a wage ceiling of $400 per week, are paid by employers, employ ees and self-employed persons with some vanatlons Surplus funds from contributions paid over the life ofN ational Insurance now to tal $1.5 billion . These funds, which are not yet required for the payment of benefits, are invested in various types of public and private sector securities in the country. For '36 years the National Insurance Board has played an important role for The Bahamas. It has an excellent record of con sistently providing workers with reliable income support at all stages of life, but especially in old-age. It has also made !arge amounts of capital available for the devel opment and improvement of key infra structure throughout The With the recent amendments, future generations of contributors and pensioners can be as sured of a more sustainable system that delivers on its promises for to come.


.. : Changes that took. effect July 2010 I. PENSION INGREASES: Over 30,000 pensioners who were in receipt of a pension on June 30, 2010 saw their pension increased, retroactive to July 2010. For those whose pensions were awarded prior to July 2008, the increase is For those whose pensions were awarded be tweenJuly 2008 andJmie 2010, the increase Uncollected Pension Cheques -at October 31 The below-listed persons or their rep. resentatives are asked to call or visit the P ensions Department in the Cli'fford Darling Complex, J umbey Village-(242) 502-1607 or (242) 502-1890. Bishop, William Carter, Flora Charles, Gerard Cleare, Felix Daley, Krish?n Davis, Bernard Edgecombe, Edward Estreal, Sauveur Frattini, Silvestro Storr-Clarke, Janet Thiruppathy, Nadarajah Thiruppathy, Punitha Thompson, Marie Wright, Rita I l is based on the effect that inflation has had on their pensions since being awarded. This could be as high as 6.4% (if awarded in July 2008) and as low as 0.2% if awarded in June . 2010. When pensions are first awarded, the amount payable is based on the number of contributions made and the highest aver age insurable wages on which contributions were made. If however, the calculate4 pen sion is less than the relevant minimum pen sion, the amount received by the pensioner is the Minimum pension. The following table shows the old and new minimum pension rates. Rates Rates July 2010 2010 Retirement (awarded I at age .65), Invalidity & Survivors benefits $270.00 $287.82 Retirement benefit awarded at age 60 250.00 266.50 Survivors benefit for children 110.00 117.26 Assistance Pensions 230.00 245 .18 Survivors assistance for children 92.00 98.06 The first payment at the new rates were made in October 2010 as detailed on page 2 of this publication. Pension increases will now take place every other July so the next adjustment will be in July 2012. As a result of the introduction of auto matic adjustment$ that are linked to infla tion, pensioners can now be assured that their NIB pension will maintain its value as the cost of goods and services increases . Example: Automatic Adjusttnents Ms. Roberts has been receiving Retirement benefit of $345 per month for al most 8 years. Her pensi_?n was only in creased once. This her pension will be increased again, this time by 6.6% to $367.77 per month. It will then be in creased again in July2012 by the sum of the inflation rates in2010 and 2011. If the inflation rates in 2010 and 2011 are 2.2% and 2.8%, then her pension will be increased by 5% (2.2% + 2.8%). Her pen: sion from July 2012 would be $386.16 to be further increased in 2014, 2016 and 2018. Ms. Roberts no longer has to worry about her pension remaining fixed for a long period and she can he assured that ip. 2016 her NIB pension witl be able to purchase the same items her current pension is able to buy. II. GRANT INCREASES The Maternity Grant and Funeral Benefit were increased by 6.6% with the newrateseffectiveJuly 1, 2010. Funeral Benefit and Maternity Grant are one time payments payable after the death of an insured person or his/her spouse, and after the.,hirth of a These grants have not been increased since 1999. After the 6.6% increase effective July 2010, these grants will be increased every other July by the sum of inflation the two years befor.e th@ adjustment. The new rates, effective July 2010 are. Funeral Benefit: $1,600 Maternity Grant: $430 Persons who received Funeral Benefit or Maternity Grant at the old rates ($1,500 and $400, respectively) for births or deaths that occurred afterJune 30,2010, and who have not received their adjustments, should contact their nearest National Insurance office collect their payments. B3ge 3 :


Changes taking effect January 2011 A. INCREASED CEILING ON INSURABLE WAGES From $400 per week to $500 per week in January 2011. increases to the, insurable wage ceiling will be a s follows: From $500 to $600 per week in and Every two years (in July) starting July 2014 by .the esti mated increase in average -. . . The ceiling on wages is the maximum earnings on which contributions and bene.fits

. '. Retirement Benefit, cont'd Example: Lump Sum Retirement Grant Randolph has made 267 weekly con tributions to the National Insurance Board while he worked in The Baha mas many years ag o. He turns 65 years old in Fe raary 2010 and is about to Retirement Benefit. Because he does not have 500 contributions, he will not qualify for a lifetime pen sion. Instead, he will receive a Retire ment Grant. The amount of the grant will be calculated as fbllows: Number of full sets of SO. contri butions inade: 5 {267 is rriore than .. 50 x S than 50 x 6) . . Average we!=!kly insurable wage: $250 6 x 5 $250 = $7,500 C.MORE CHANGES TO RETIRE-. MENT BENEFIT Change from 3 to 5 the number of years used to deter'!line the aver age insured income on which the benefit will be paid. Change the schedule of accrual rates for pensions: New schedule: 30% after 10 years plus 1% for each year thereafter, giving 60% maximum after 40 years. Eliminate the adjustment to aver age insurable wages for pension calculations of those earning more than $2 50 per week that was imple mented in 1999 when the wage ceiling was last increased. These changes to the way Retirement Bene tit s are..calculated will reduce slightly the benefits p ayable. This will ensure that there is a better relationship the contributions made and pensions receive d, and that the maximum benefit of 60% is reached after 40 years of contributions. The changes to how_ pensions accrue over one's career are shown below: Retirement Benefit Rates Based on Total Contributions 200 249 17 250. 299 20. 20 300 349 22 22 350 . 399 24 24 400 449 26 26. , .. 450 499' 28 28 -I,. 500 549 30 30 550 599 32. 31 600 649 .34 .32 650 699 36 33 . 700 749 38 34_ 750 799 40 35 -800 849 41 36 850 899 42 37 900 43 38_ 950 999 44 39 1,000 1,049 45 40 1 ,050 1,099 46 41 1,100 l,149 47 42 1,150 -1,199 48 43 1,200 -1,249 49 -44 1,250 -1,299 50 45 1,300 -1,349 51 46 1,350 -1,399 52 47 1,400 1,449 53 48 1,450 1,499 54 49 1,500 -1,549 55 50 1,550 -1,599 56 51 .1,600 -1,649 57 52 1,650 -1,699 58 53 1?00 1,749 59 54 1,750 1,799 60 55 1,800 1849' 60 56 1,850 -1,899 60 57 1,900 1,949 60 58 1,950 1,999 60 59 2,000 > 60 60 The heavy weighting of pensions to the first 10 years of contributions {30% after 10 years of contributions) is being retained. So while no change is being made to accruals in the first 10 years the new schedule . would require 40 years of contributions to earn the 60% replacement rate instead of 35 years under the current schedule. Example: Michael -is 65 years old. He has contrib uted to National Insurance for his entire working career 34 years. In total, he made 1,768 we ekly contributions. He will retire in'2012 earning $350 per week. Below is what Michael's pension would .. have been before the changes and what it_ . is under new rules. Benefit percentage for 1,768 contr': Best 3-year AIW week Monthly benefit 60% 55% $318 NIA N/A $325 $827 $775 But while Michael 's pension has been slightly reduced, he can be assured that every two years his pension will be ad justed for inflation. Prior to 2010, pen sioners could not anticipate automatic pension adjustments. D.EARL y RETIREMENT BENEFITS Change the reduction factors ap plied to Retirement Benefit awarded prior to age 65 from 4% for every year below age 65, to 7/12% for each month age 6 5 years. The normal age at whjch Retirement Ben efits start is 65 years. However, National


.. --A 1 January 201t, cont'd Insurance offers flexible rules that allow the pension to be awarded to someone as young as age 60 years, once the person is either fully retired or, if still working, earn ing less than 50% of the wage ceiling. To ensure that there is fairness in the amount paid regardless of the age at which the pension pensions payable before age 65 are "actuarially adjusted." This ad justment ensures that the decision to take a smaller pension earlier, and thus receive it for more .years, has similar value to wait ing until age 65 for the full pension and receiving it for fewer years. The current 4% per annum reduction is extremely ad vantageous to those taking pensions early and is costly to the Fund: 7 I 12% per month prior to age 65 is a more appropriate re duction factor and is the rate recently adopted by the Canada Pension Plan: E x ample: Jennifer celebrated he r 60th birthda y six months ago. She is no longer employed and is trying to decide whether or not she should claim a reduced Retirement Benefit now or wait until age 65 to claim her unreduced pension. Just like Michael in the previous example, she has contrib uted all of her working life and her pen sion at age 65 would be $500 per month. At age 6 0 years and 6 months, Jennifer is 54 months from her 65th birth day. Therefore, if she elects to have her pension start at age 60Vz, the monthly pension will be reduced by 31.5% 54 months x 7%/12. This would make her actual pension $342.50 per month. If instead she waited until her 6Yd birth day to start receiving the benefit her pen sion would be reduced by 14% (24 months x 7%/12) and would be $430 per month. Page 6 rr E.aSurvivors Benefit Allo w widows and wid owers to re ceive both their Retirement (or In validity) benefit and a p o rtion of the Survivors benefit after the death of a spouse. Pay a one-time grant to widows and widowers who are ineligible for a Survivors pension. Under current rules, a surviving spouse cannot collect both a retirement pension and a survivors pension. Instead, only higher of the two benefits is payable. U n der these rules, it is possible for household income to fall by more than 50% when one spouse dies. Effective January 2011, widows and widowers be able to receive their Re tirement (or Invalidity) Benefit plus one half of the Survivors Benefit that would have been payable ha_d he/ she had no en titlement to another pension. Example: M r. and M r s Johnson are both r ecei vi n g Retirement Benefit -$700 per month to Mr. Johnson and $400 per month to Mrs. J olinson. Under current rules, if Mr. J ohnst:m dies his widow may be entitled to a Survivors Benefit, but only if that pension is larger tha,n her Retirement Benefit. She cannot get both. In this in stance the Survi v ors Benefi t whi c h is 5 0 % o f t he deceased 's pens ion, w ol.lld b e $350 per month less than the $40 0 per month that Mrs Johnson now receives in her own right. She will continue to receive her $400 Retirement Benefit. With the changes in January 2011, Mrs. Johnson will be able to keep her $400 pension, plus she will receive an addi tional .$175, which is one-half of what the Survivors Benefit would-have been ($350). In total, Mrs. Jonson will receive $575 per month instead of only $400 per month. I I I' J I t must b e noted that the re will be n o retroactivity with the new additional pen sion. Persons who now receive the higher of the two benefits will have to submit a claim when the amendment takes effect be ginning January 2011. They will be paid from the point of claim onward, so long as they continue to qualify. E. b Survivors Grant Following the death of a spouse, only some widows and widowers qualify for the Survivors Benefit. To qualify, the widow or widower must either: a) have chi ldren under the age of 16, or 21 ifstill in school, b) be over the age of 40 and not em ployed, or c) be under the age of 40 and working for less than half of the insurable wage ceiling; ($200 per week under current rules; $250 new rules). For widows and widowers who do not mee t an y of the above cri teria, no benef i t is awarded . Given that the deceased may likely-have been employed and contributing to the upkeep of the household, provisions have been put in place for the widow or wid ower to receive a one-time payment equal to 12 months worth of pension pa y ments that would h ave b een p aya bl e to the de ceased had he/ she qualified for a pension. In all cas_es, the deceased person must have made at least 150 contributions. continued on next page > ARE you VERIFIED? If you were hom in May or Novem ber, you're due for verification this month. Failure to be as indicated will result jn the suspension of 'ys)tlr paym . 1 \ I I


Grant, cont' d Example: Mr. and Mrs. Smith have been married for 2 years and have no children. Mrs. Smith dies in February 2011 at the age of 49. She had contributed to NIB for 7 years. Mr. Smith is employed, earning more than $400 per week. Even though Mrs. Smith contributed for more than 3 years, her husband's income and the fact that they had no chil dren, disqualifies him from receiving Survivors Benefit. However, because of the change in Survivor Benefit rules that will take effect in January 2011, Mr. Smith will receive a one-time grant, the amount of which will be determined as follows: : 7 years of contributions provide a benefit % of 22% :Mrs. Smith's best 5-year average insurable wage on which she paid contributions was $400 per week. :.The maximum Retirement or Invalidity pension she would have been entitled to had she qualified would have been: 22{}/u x $400 = $88 per week or $381 per month. : The grant ; which is equal to r pension endtlement for 12 months, would, therefore-, be a one-time payment to Mr. Smith of $4,572. F. SICKNESS BENEFIT -Award claims for Sickness Benefit only if the claimant is currently employed on the day of, or day prior to the onset of the illness. Social Security benefits are intended to replace i"ucome lost due to one of many contingencies result in the worker hav ing to either temporarily or permanently stop work. Eligibility conditions for Sick ness Benefit require that.the claimant be inca of work due to illness. To date, claimants who are not employed at the time of the illness can be awarded Sickness Benefit if they meet the contribution conditions. This goes against the main purpose of the benefit which is intended to replace lost income. Also, with the new unemployment benefit, persons can now re ceive income-replacement once they their job, and Sickness Benefit should only be paid if illness results in their actually losing employment income. 'I I t G.SICKNESS, MATERNITY, UNEMPLOYMENT AND IN JURY BENEFITS Change the daily rate of payment for each of these four benefits to the weekly rate divided by 5 instead of the weekly rate divided by 6. Most workers in The Bahamas now have a 5-day work week. Since 1974, National Insurance has assumed a 6-da y work we ek. As a result, where benefits are payable for a portion of a week the daily rate is one-sixth of the weekly rate. To bring National Insurance benefi ts more in line with actual working patterns, the daily benefit will be changed to one-fifth of the weekly rate. This change will have li ttle effect on the amounts payable for Maternity Benefit and Unemployment Benefit which are usually paid for several weeks. For Sickness Benefit and Injury Benefit, how. ever, claim payments could be slightly larger or smaller depend ing on the length of time off from work, the claimant's usual days off from work and the day on which the benefit -is first payable. Example: Shawn makes $400 per week and will be off from work for 8 working days due to illness, starting on Wednesday. He usu ally works Monday to Friday and has weekends off. The weekly Sick.Q.ess Benefit is 60% of $400 or $240 and thus the daily rate would be $240 divided by 5 or $48. The first three days of the claim (Wednesday to Friday) are waiting days ana thus are excluded. Asa Sickness Benefit will be paid for five days-Monday to Friday of the next week. The total amount payable would be $240. tJad Shawn been off sick for only 5 working days (returns to work on Wednesday), he would be paid Sickness Benefit for 2 days Monday and In this case, the amount payable would be $96. H. UNEMPLOYMENT BENEFIT Reduce the number of waiting days for Unemoloyment Benefit from 15 days to 3 days. For the recently introduced Unemployment Benefit the wait. ing period is 15 days. This is much longer than. the 3 aays for Sickness and Injury benefi"ts. With the more stringent re qui re ments for Unemployment benefit that came into force on June 1, 7 I I I '' \ ' .


. . : unemployment, cont'd 2010 and the new requirement that one must be employed to receive Sickness ben efit, reducing the waiting period for unem ploymen t to 3 d ay s w ill provid e a qui c ke r re p l aceme n t o f los t income f o r workers who involuntarily lose thei r jobs. I. SELF-EMPLOYED PERSONS Extend for all benefits, except Unemployment Benefit, to all self-employed persons \if.. ... .i./t Increase the contribution rate for those selflemployed persons not cur-: ren.tly receive Industriat : benefi.ts.from, 6.8% to 8.8%... Require::that .. all sons mus(be up-to-daie With their; cotztribu!iQns in ,order to /or In,dustridl betzefi.ts. ... Under the cur'rent rules, only a classes o{self-employed persons are eligl.ble for Industrial Benefits :_ Class B: share fish. ermen, licensed fruit and vegetable vendors, and taxi drivers who own their vehicles and are licensed to ply them for hire. other self-emplqred person is categorized as Class A which rne aris that most of the more than 25, 000 self-employed persons in The Bahamas are currently not entitled to any benefit s injure d i.1;1 the course of performing their t r a de As of January 2011, Self -Employed Per sons in Class A will be incl u ded in the cov erage for industri a l b e nefits ; cons equently, all self-employed persons will be covered. I ndus t rial benef i ts are: : Injury Benefit -whic h replaces a portion lost when a worker is off from work because of an industrial injury. or disease. It is similar to Sickness Benefit, but is pai d a t a slightly higher rate with no c ontribution PcQ= 8 condition. : Medical Care -Reimbursement or payment of reasonable medical costs ass o ciate d with treating job-related injuries o r d i s eases. : Disablem ent Benefit o r Gr a nt -Life t ime pension o r one-time p ayment depending on the severity of the injury and the loss of bodily function : Death Benefit-A monthly payment to dependent survivors where death occurs as a result of a job-related 4ccident. It is similar Survivors Benefit, but is paid at a higher rate with no contribution conditions. : Industrial FurJeral Benefit -A onetime grant paid to the who pays or is liable to pay the funeral expenses of the worker killed in an industrial event. Unlike the general Funeral Benefit, there is no contri. bution condition. As stated, there are no contribution conditions attached to qualifying for Indus trial Benefits. This means that a worker who just reported to a new job, is covered for Industrial benefits froni his/her first day. Regarding contributions f o r a n em ployed person, oblig ation to contr ibute r ests with the employer ap.d so NIB does not deny claims because the employer is late in submitting the C-10 and their monthly contributions. Self-employed persons are different as they pay their own contribut ions. So t o eliminate the p ayment of industrial ben efits in cases where a self-emplo yed person gets inj_ured while working and then de cides to contribute after the accident in order to qualify a new requirement is be ing put in place to ensure that the self-employed person must be no more than 60 .. days behind ori their contributiQns at the time of the injury. Additionally the self employed person must be registered with N ation;1l Insurance in the occupatiOn m which he was injured. Example Jennifer is a selfe mplo y ed interior d e co rator and m a kes con t ribution s o n q de clared wage of $300 per week. She has paid contributions up to March 2011. On August 5, 2011 she falls from a ladder while hanging curtains for a client. She sustains injuries to her right leg and right shoulder and : seeks medical treatniertt:' hospital bill is $l50 two . follow-up doctors for which she has to pay $150. The doctor indicates that she should not perform my'work for Of\C .. month. : -At time her August 5 ; 20i1Jennifer was 3 months behirid on her contributions-April, May andJuile. Alth,ough July has passed, these buuons ate not considered late until August 16. Contributions for April are d\le on or before M a y 15, and so on August 5, con tributions for April are 82 l a te. A s a result, Jennifer canno t qualify for Indust rial benefi ts and thus will ha v e to p ay her $900 m e dical bills Had she p a i d c ont ributi o ns to Ma y 2 011, sh e w o ul d have the following benef its fr o m NIB : $900 to cover her med i cal bills, and 'Injury Benefit of $200 per week for t he per iod that sh e is unable to w ork. Increased contributions for Class A Expanding numbe,r of available benefits to the majority of self-employed persons requires an increase in the contributions they pay. For Class A who now p ay 6 8% of declared w ages the new contribution ..:.,

Unemployment Benefit, Cont'd rate will be 8.8% This 8.'8% rate will now apply to all self-employed persons. The following table gives an example of current and future monthly contribu tions Self-Employed persons who now pay at the lower 6.8% rate and who are not covered for Industrial benefits. $1,733.00 Per Month Before Jan '11 After Jan. 2011 Contributions Contributions 6.8% 8.8% $117.84 $152.50 J. AssiSTANCE PENSIONS The means test or test-of-resources by which one's eligibility for an As sistance pension is.assessed, will be strengthened to include financial assets, real estate other than the dwelling To poverty among the elderly, invalid and widowed, the National Insur ance Board pays Assistance or non-con. tributory pensions to persons who are poor' and who did not make sufficient contribu tions to quaJify for a contributory pensi

. . July 2011, con_t'd M. PENSIONABLE CIVIL SERVANTS National Insurance contributions will contribute in the same manner as other employed persons. Since 1984, permanent and pensionable I civil servants contribute less -to NIB that other employed persons. Currently, in stead ofpaying 9.8% contributions on wages tip to the wage ceiling like other employed persons, they contribute 9.8% on the fitst $110 per week and less on in surable wages from $110 per week to $400. The lower contribution on wages above $110 per week is to the fact that their ceiling on insurable wages for pen. sion purposes has been fixed at $110 per week since 1984. As a result, pensionable civil servants contribute less and teceive smaller Retirement, Invalidity and Survi. vors pensions. The largest Retirement pen sion awarded to a 65-year old pensions bale ciyl.l servant is $286 per month compared with $942.50 per month for other worker.s. Going forward as a result of the changes, pensions for pensionable civil ser vants who will make contributions at the regular rates will be based on a weighted a"':erage of insurable wages made in the cur rent and new classes of coverage. The Re tirement pensions of current pensionable civil servants will increase gradually as the number of years of contributions as a regu lar contributor increases. :age 10 r Pensi th ents th cheques for the months of November and December 2010 will be deposited to banks, and will be available at relevant Local Offices in the Family Islands by Friday, No vember 26 at the usual times and places. Increases and adjustme!lts aris ing out of the July 2010 amendments to the Benefits Regulations will be re flected in the November .26 pension payment period. The National Insurance Board ap ologizes for an:y inconvenience caused by the delay in payments. Pension Payments 2011 Month Bank_ Deposit January Tuesday, 18th February Tuesday 15th March Tuesday 22nd April Tuesday 19th May Tuesday 17th June Tuesday 21st July Tuesday 19th August Tuesday 16th September Tuesday 20th October Tuesday 18th November Tuesday 22nd December N ove.r;nber pay date *Cheques for December 2o"11 will be issued during the November pay period which begins November 22,2011 Pay Contributions on Tinie! Contributions from employers and self employed persons are due at the end of each month and must be made within 15 days of the month they become due. In. terest is automatically applied to late pay ments. If you've not yet paid contributions for October 2010, you're late and you will be charged interest. Helpful Hints completing the 10 form, please en' ....sure that: 03> all columns are completed and totalled correctly; 03> completed Registration Forms (R4) have been sent in for all employees without Registration numbers; 03> C.10s are signed by authorized persons; 03> the amount of the Cheque or cash equals the total on the C.1Q Form; and 03> The following are clearly stated: Street address; P. 0. Box number; Phone number; and E-mail address. For more information on any aspect of contributions or compliance, please call 502-1630 or 502-1692.


NIB Recognizes Long Serving Staffers at Gov't House On Tuesday, November 16, 2010, the National Insurance Board (NIB) held its annual Long-Service A wards Ceremony at Govern ment House to staffers who reached Qong) servi<;:e mile stones in 2010. Among those being recognized were seven retirees; two 10-year honourees; 12 20-year honourees; eight 25-year honourees; and three 30-yea.r honourees. Recognized for .long-ser vice milestones to the social security programme and to the people of The Bahamas were: 10 Years: Kim Russell, Senior Clerkin the Freeport Local Office; and William Scavella, Clerical Supervisor ill, in the Pur chasing, Stores and Auxilliary Services 20 years: Gail Carey-Gay, Assistant Manager, Information Tech nology Department; Lucinda Cooper-Petsch, Local Of fice Manager, Gray's Office, Long Island; Therese farrington, Senior Claims Officer, Cat Island Local Of fice; Ellouise Gibson, Senior Clerk, Simm's Local Of fice, Long Island; Shellyn Ingraham, Executive Secretary, National Prescription Drug Plan; Kevin Knowles, Man ager, I. T. Department; Heather Maynard, Legal Officer; April Miller, Senior Compliance DepartmeO:t; Learlean Mcintosh-Cornish, Family Island Local Office Supervisor' Cooper's Town Local Office, Abaco; Whitney Patton, Chief Internal Auditor; Sheryl Rahming, Assistant Internal Auditor; and Nadine Rolle, Senior Claims Officer, Marsh Harbqtir Local Office; 25 Years: Jlia Barry, Senior Claims Officer, Occupational Health & Safety Unit; Una Burrows, Senior Clerk, Pension Verification; Dennis Burrows, Executive Officer, NPLO Inspectorate; Elvera Newbold-Riley, Senior Clerk, Fresh Creek Local Office; Lana Kelly, Local Office Manager, Spanish Wells and Harbour Island Local Offices; Pleasant Hanna, Senior Clerk, Pension Verification Unit; Bernadette Pratt, Senior Clerk, Nicholl's Town Local Office, Andros; and Erma Stevens, Operator, Purchasing, Stores and Auxilliary Services Department. 30 years: Barbara Seymour-Fox, Senior Claims Officer, Inagua Local Office; Maxine Williams-Clarke, Senior Claims Officer, NPLO Claims and Philip Smith, Technician ll, Facilities Department Those who retired or are retiring in 2010 were: Bowleg, Janet, Senior Assistant Manager; Bernal Bullard, Senior l.tlspector; Addington "Bud" Cambridge, Senior Assistant Manager; Brian Knowles, Senior 'clerk; Doriemae OliveJ,",: }anitress; Rpselyn Rolle, Senior Manager; and Deidre Thompson, Seniqr Clerical Supervisor. . .. Top: The Honourable, Sir William Allen, Deputy eral gave the keynote address to honourees at NIB's Annual Long Service Awards held at Government House on November 16. He is pictured along with the Honourable Zhivargo Laing, M.P., State Minister in the Ministry of Finance, NIB Director Algernon Cargill and other executives of the National Insurance Boatd, and a group of honourees. .. Tune in to NIB live T.V. & Radio "Town Meetings" Tune in to ZNS TV 13 or 1540 radio on Tuesday, No. vember 22 at 8pm, and to 1540 radio at 8pm on Wednes day, November 23 and Thursday, November 24, as NIB leads the discussion on the changes contained the 20i0 Amendments to the National Insurance Benefits and Assistance Hear how the changes will affect you from NIB representatives, Derek Osborne, Gonsultant Actuary, Gregory Collie, Senior Manager Compliance, and Pandora Public Relations Of ficer. . executive Keith Major will host theJive casts. / I .........


I I. I .. 1 If 1 The NATIONAL PRESCRIPTION DRU ACE .. , ', '' Jefore going to a -check to--ettsure that: .Meditlfle Is Ot1 fhe d Rafio1ta1 Pmerlptiofl Prug Your Poetor's Wriffelt Clearly The NPDP formulary (list of drugs) consists of 165 Your PreseripfiOII Or MedieatiOfl for leil prescription drugs and medical supplies for The NPDP's computerized system requires a doctor's c:bronic c;onditions only, namely arthritis, asthma, breast name in order to process a claim. If your prescription is cancer, diabetes, glaucoma. high cholesterol, hypertension, being issued by a doctor at a public hospital or clinic you ischaemic heart disease, major depression, prostate must ensure that the doctor has written and stamped his cancer and psychosis. Ask your doctor if your drug is or her name clearly on the prescription as the system on the formulary. If the drug you are using is not on the will not accept DR. PMH or the name of a clinic. t\11 formulary ask your doctor if he or she can prescribe an medications for refill that were previously prescribed alternative that i s on the formulary have been by physicians at public hospitals and clinics must also be provided with copies of the formulary and the formulary stamped with the prescribing physician's name. can also be found at d -d Your Podor Is Avthorized fo Prescribe Your AU Your CotuDtio11s Haw hill Certiied Jv -Medicatiotl --A UceJISed Physfdatt Certain medications can only be prescribed by specialists, Prescriptions will only be filled for conditions that have for example, medications to treat breast cancer can only been certified by a licensed physician. For example, if be prescribed by an oncologist. A prescription written by you have been certified for hypertension but not for a general practitioner or a cardiologis t for a .drug to treat glaucoma, the participating NPDP pharmacies can only fill breast cancer will not be filled. -An Your Ate Pmuipflott Card With You. your prescriptions for hypertension medication but not for glaucoma medicatiort. In order to receive medicine for glaucoma you must have your eye doctor fill out a "Change of Information" form. This form can be obtained from NIB offices, clinics, doctors' offices and the Drug Your Ace Prescription Ca rd identifies you as a beneficiary Plan's website. Once the form has been filled out the of the National Prescription Drug Plan and will enable beneficiary must return the form to NIB or the Drug you to access the benefits of the Plan. ACE Prescript ion Plan Office at Wulff Road for processing Within 48 hours Cards can be collected from NIB Headquarters at the Sir the beneficiary should be eligible to have prescriptions Clifford Darling Complex, Blue Hill Rd. and NIB offices in filled for the new condition (s) The list of approved Grand Bahama and The Family Islands Mondays through physicians who are authorized to prescribe medicine for Fridays between the hours of 9 a.m. and 4 p.m. the National Prescription Drug Plan can also be found at __ ___ OR AJI NeW Contrrtiotll Have he" Cutiied Jy --\W Haw Avfhorized A Pesipafld ----A Ueensed Physieian --. --. .. ____ btdividuaJ 10 Collect Medicatiott 0.. Your Jehalt If you have been diagnosed with a new condition since If you are unable to personally collect your own medicine -you originally registered for the Drug Plan and that you can designate an individual to collect it for you. To condition is covered by the plan you must submit a ----do this simply obtain a B6 form from NIB, complete it "Change Of Information" form to NIB or the Drug and take it to the participating pharmacy of your choice Plan bffice at Wulff Road in Nassau. This form can be ___ or write a letter of authorization to the pharmacy that obtained from NIB offices clinics. doctors offices and identifies the person who will collect your medicat ion. the Drug Plan' s website Once the form has been filled This person should. present your card and a valid photo out the beneficiary must return the form to NIB or the---ID when visiting the pharmacy to have your prescr iption s Drug Plan Office for processing Within 48 hours the filled. beneficiary should be eligible to have prescriptions filled for the new condition (s). ------------------------ ----