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

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

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

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

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

6. 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

7. 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

8. All Bahamas in 2012 26,903 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

9. Contributions 9 Wage Ceiling Drives Benefits 1974 - $110 1985 - $250 1999 - $400 2011 - $500 2012 - $600

10. 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. 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$600.00 Monthly476.001,083.001,733.002,167.002,600.00

12. 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

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

14. 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))

15. Contributions 15 2010 Amendments Effective July 1, 2013 All wages up to ceiling to be included in insurable wages for CSPs

16. 16 Contributions - CSP Weekly Insurable Pensionable Wages Civil Servant EmployerTotal (a)Up to $1103.9%PLUS5.9%PLUS9.8% Plus: (b) In excess of $110 2.2%3.05%5.25% up to the ceiling Previously

17. 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%

18. Contributions - CSP 18 A Regular Employed Person at age 65: (after paying some 2,008 contr.) 60% of $430 = $1,118.00 per month CSP at age 65 years: 60% of $110 = $301.08 per month

19. Contributions Questions??? 19

20. For Further Information Call: 325-4653 or 325-4655 Toll free from Family Islands 242-300-1394 website: www.nib-bahamas.com or Contact nearest NIB Local Office 20