NASSAU, BAHAMAS — Prime Minister Philip Davis yesterday announced that government will implement a National Insurance Board (NIB) rate increase at the start of the next fiscal year, ending months of speculation regarding government’s plans to address the sustainability of the fund.
In a statement released Tuesday evening, Prime Minister Davis while acknowledging the need for adjustments, stated that no NIB rate increase will occur during the new fiscal year beginning July 1. Instead, the rate increase will be introduced next year, on the first of July 2024.
“The global inflation crisis has been a significant strain on household finances for many Bahamians, and we do not wish to impose any additional burden. We hope that a full year’s advance notice will allow all impacted the time to plan to accommodate the increase,” Davis said.
‘The challenges the NIB faces are not unique to our country; indeed, they are being experienced by social security systems around the world. The COVID-19 pandemic, changing demographics, and the realities reflected in actuarial tables have forced us, like many others, to rethink how we operate.”
He added: “It is important that Bahamians know that we will use the year to come to implement significant reform at NIB. We intend to make our system more efficient and more user- friendly. Bahamians deserve a simple and transparent process. We will continue to scrutinize claims to prevent fraudulent activities and ensure that those who contribute are the ones who benefit.”
According to Davis, the government’s goal is not merely to ensure the longevity of the NIB but to create a system that truly serves its purpose: to support Bahamians when they need it most.
“To those who worry that a delay will make the eventual increase larger than it otherwise would have been, we can assure you that will not be the case. We are all navigating these challenging times together, and it is in this spirit that we are striving to balance the short and long-term needs of Bahamian families. The changes ahead will secure a promising and resilient future for the NIB,” he noted.
During the mid-year budget debate in March, Myles LaRoda raised concerns over the fund’s sustainability and warned that action must be taken. According to Laroda, NIB is projected to lose some $98 million this year if there is no increase.
