National Insurance Enhancing the promise……. securing the future! 1 October 28, 2013

Provide social security coverage, in the form of benefit payments to insured persons and their dependents, against specified contingencies 2 Primary Mission

Specified Contingencies: Sickness Death Invalidity Childbirth Retirement Death of the Breadwinner Industrial injury (disablement and death) Involuntary unemployment. 3 Primary Mission

Provide a minimum level of social security coverage for persons who do not qualify for such benefits as of right. 4 Secondary Mission

Assist with the sustained, orderly socio-economic growth and development of the country. 5 Secondary Mission

In order to fulfill the mandate, NIB collects contributions. Contributions fund benefits and assistance. Monies not paid out in benefits and assistance are invested to help grow the Fund. 6 Social Security Protection

All Bahamas Active Insured persons: about 142,000. Contribution 2012: $203 million Benefit/Assistance pay-out: $199.8 million Reserve Fund: $1.65 billion 7 Income/Expenditure – the 2012 experience

All Bahamas in ,903 per month receiving LTB Additional 5,077 receiving assistance – i.e., needy elderly invalids, widows, widowers and surviving children ($16.1 million) 8 Income/Expenditure – the 2012 experience

Contributions 9 Wage Ceiling Drives Benefits $ $ $ $ $600

Automatic Wage Ceiling Adjustments Every 2 years – starting in July 2014 – by the estimated wage increases over previous 2 years 10 Contributions – wage ceiling

11 Contributions – wage ceiling Ceiling on Insurable Wages since 1974 PeriodOct. 1974Jan. 1985Jan. 1999Jan. 2011July 2012 Weekly$110.00$250.00$400.00$500.00$ Monthly , , , ,600.00

Contributions – wage ceilings 12 On $110: ‘EE (3.4%): $3.74/’ER (5.4%): $5.94 wk On $250: ‘EE (3.4%): $8.50/’ER (5.4%): $13.50 wk On $400: ‘EE (3.4%): $13.60 wk/’ER (5.4%): $21.60 wk On $400: ‘EE (3.9%): $15.60 wk/’ER (5.9%): $23.60 wk On $500: ‘EE (3.9%): $19.50 wk/’ER (5.9%): $29.50 wk On $600: ‘EE (3.9%): $23.40 wk/’ER (5.9%): $35.40 wk

Contributions 13 Paid as a percentage of actual wages up to ceiling, however….. Integration Clause

Contributions 14 “…. Every employer is entitled to modify in such manner as may be prescribed, the rate of contributions and benefits payable under any pension scheme instituted by him for the benefit of his employees… for the purpose of eliminating overlapping benefits and contributions and for ensuring that the aggregate of the pension receivable under that scheme by an employee upon his retirement from the service of the employer or upon attainment of the prescribed rretirement age or by reason of his invalidity and the amount of the retirement or invalidity benefit receivable by the employee under this Act does not exceed the salary payable to him immediately prior to such retirement or invalidity.” (Sect. 22 (a))

Contributions Amendments Effective July 1, 2013 All wages up to ceiling to be included in insurable wages for CSPs

16 Contributions - CSP Weekly Insurable Pensionable Wages Civil Servant EmployerTotal (a)Up to $1103.9%PLUS5.9%PLUS9.8% Plus: (b) In excess of $ %3.05%5.25% up to the ceiling Previously

Contributions - CSP 17 From July 1, 2013 Weekly Insurable Pensionable Wages Civil Servant EmployerTotal Actual wages up to Insurable ceiling3.9% 5.9%9.8%

Contributions - CSP 18 A Regular Employed Person at age 65: (after paying some 2,008 contr.) 60% of $430 = $1, per month CSP at age 65 years: 60% of $110 = $ per month

Contributions Questions??? 19

For Further Information Call: or Toll free from Family Islands website: or Contact nearest NIB Local Office 20