The 8th Actuarial Review proposed recommendations for benefit and contribution increases.
The NIB has been in existence over 25 years and has never proposed a contribution rate increase. In order to ensure the continued financial sustainability of the National Insurance Fund, the review recommends a contribution rate reform within the next 2 to 5 years and pension design reform, possibly within the next 10 to 15 years.
I am pleased to inform the general public of the following amendments to various sections of the National Insurance (Benefits) (Amendments) Regulations 2017 which took effect on January 1, 2018.
Increases to Pensions - in - Pay
- Retirement, Invalidity, Survivors’ and Disablement pensions awarded to pensioners on or before 1 March 2011 will be increased by 17.5%.
- Pensions awarded during the period 1 April 2011 to 31 March 2012 will increase by 12.3%.
- Those awarded during the period 1 April 2012 to 31 March 2013 will be increased by 9.1%;
- And, Retirement, Invalidity, Survivors’ and Disablement pensions awarded during the period 1 April 2013 to 31 March 2014 will be increased by 6.5%.
Increase in Minimum Pensions
- The minimum monthly pension for Retirement and Invalidity Pensions will increase from $370 to $405.
- The minimum survivors’ pension increases as follows:
- Spouse – from $270.00 to $300 per month
- Dependants - $110.00 to $120 each per month.
All effected pensioners will be formally advised of their new monthly pension by way of letter with their January 2018 pension payments.
Increase in Non-Contributory Old Age Pension (NCOAP)
- NCOAPs will increase from $275.00 to $300.00 per month.
Some 67% of our pensioners across the Turks & Caicos Islands will benefit from these increases.
Increase in Maternity Grants
- The Maternity Grant will increase from $550.00 to $600.00 per child.
Increase in Funeral Grants
- Funeral Grant will increase from $1,420.00 to $1,550.00 for dependants; and from $2,190.00 to $2,390.00 for insured persons.
Increase in Death Grants
- Death Grant will increase from $800.00 to $995.00 for dependants; and from $2,190.00 to $2,390.00 for insured persons
Amendment to Qualifying Criteria for Funeral Grant
- The qualifying conditions for the Funeral Grant have been relaxed, all contributors with 500 paid or credited contributions, at the time the death occurs, will be eligible to the Funeral Grant. The relaxed contribution requirements will result in an increase in the number of persons being eligible for the benefit.
Income Bands for the Self Employed
Increases were also recommended to the income bands for the self-employed contributor.
These changes, which shall be effective June 1, 2018, will bring the self-employed contributions in line with increases adopted for employees between April 2015 and April 2017.
Existing self-employed contributors with the following weekly wage elections will be increased as follows:
- $100 to $225
- $200 to $325
- $400 to $525
- $600 to $725
The new $925 per week income band may be selected by eligible persons from January 2019.
Please feel free to contact us at 946-1048 (Grand Turk) or 941-5806 (Providenciales) for further details.
You are also invited to visit our website at www.tcinib.tc or our Facebook page to see detailed information on the recent legislative changes.