NIB Pension Funds Safe
Mrs. Misick indicated in a recent interview that the Government has empowered a single entity to collect the payroll taxes, but the monies collected will be sent separately to the two institutions and used for their individual programs. “I want to make it absolutely clear that the monies for the National Insurance Fund will NOT be used to fund health care or vice versa”, said Mrs. Misick.
The programs of the NIB and NHIB will NOT be merged and the monies in the National Insurance Fund will be kept absolutely separate, commented Ms. Lillian Misick. “The Government is looking at more efficient and effective ways to collect the monies from our common clients and these improvements will allow us to cut administrative costs while improving service to our clients.”
A common collection system is in place in several Caribbean countries, along with developed countries such as Canada and many European nations, noted Mrs. Misick. “This approach just builds upon common best practice”.
Mrs. Misick went on to say that Trevor Cooke was named as a Board member of the NIB and has not assumed his old position as the Director/CEO of the organization.
NIB’s Chair also wanted to dispel the incorrect statements of the TCI News Now with respect to the current funding of NIB benefits. “The NIB earns about $35 million/year at the current time in contribution and investment income and spends about $12 million/year in benefits, with the remaining funds being invested to grow the National Insurance Fund. In total, we have about $175 million invested on behalf of the people in various funds, including equities, bonds, alternative funds and domestic investments and the NIB has enough money to pay all benefits until at least 2025.
The NIB’s CEO, Mr Colin Heartwell, commented that “the NIF portfolio is broadly diversified to reduce risk, while being designed to earn returns above a global benchmark. NIB’s local investments include a significant involvement in local financial intermediaries, Headley Durham Building in Grand Turk and the Hilly Ewing building in Provo.”
Mr. Heartwell went on to say”We are moving to a single investment consultant backed by an oversight watchdog to manage the fund, which has reduced costs substantially while improving performance.”
The National Insurance Fund is the people’s money and will be protected, noted Mrs. Misick.