While the Democratic Labour Party (DLP) acknowledges initiatives like the Cost of Living Cash Credit are necessary and timely to “cushion the most at-risk in our society”, it is wary of the National Insurance and Social Security Service (NISSS) being used.
Spokesperson on finance and economic affairs, Senator Ryan Walters, said in a statement there could be no question about the intention, but the mechanism can’t be overlooked. The Ministry of Finance will disburse $100 per month to approximately 60 000 Barbadians over the next year.
“The central issue is not whether vulnerable groups deserve support because they absolutely do. The concern is whether the National Insurance Scheme, a fund built on the contributions of Barbadian workers, should be the vehicle through which Government executes its social policy agenda without clear and transparent safeguards,” Walters noted.
He queried whether these funds were being repaid.
Not clear
“Barbadians will recall the Solidarity Allowance programme introduced last year. To date, there has been no clear and comprehensive public accounting confirming whether the NIS has been fully reimbursed for those disbursements. Without that clarity, it is entirely reasonable for contributors to question whether the same approach is now being repeated, placing additional strain on an already challenged fund.”
Walters said there was no doubt the fund was “challenged” – as acknowledged by the current administration. It was also affected by COVID-19 as well as the debt restructuring of 2018, amidst promises it would be recapitalised.
The senator is calling on Government to say whether the fund was indeed recapitalised and to explain the delay in the actuarial review, which was due last year.
“This report is not a routine document; it is one of the most critical financial health checks for the scheme. An actuarial review assesses the long-term sustainability of the fund, evaluating whether it can meet its obligations to current and future pensioners. It examines contribution rates, payout levels, demographic trends and investment performance
to determine whether adjustments are needed to keep the system viable,” Walters said in the statement.
“Importantly, even when released, the pending report will only cover the period up to 2023. In other words, it will not fully capture the most recent policy decisions, economic developments, or new financial obligations now being placed on the Scheme. This makes the call for timely publication even more urgent.
“In the absence of this report, Barbadians are effectively being asked to trust that the system remains stable, without being given the evidence to support that confidence.
“This is why transparency and accountability are paramount.
Clear demonstration
“If the Government is using the NISSS as an administrative channel, then it must clearly demonstrate that every dollar disbursed for social programmes is reimbursed in full and reimbursed on time. There must be a defined and publiclycommunicated mechanism for these transfers, supported by regular reporting so that contributors can see exactly how their funds are being protected.”
Walters said NISSS was “the collective savings of Barbadian workers” to secure pensions and benefits and “using it as a pass-through for Government initiatives without airtight safeguards, risks mismanagement of one of the country’s most important institutions”.
The DLP senator said supporting the vulnerable and protecting the integrity of the NISSS can both happen.
“To achieve this requires more than announcements and feel-good headlines. It requires transparency, timely reporting, and firm guarantees that the burden of social support is carried by Government, where it belongs, and not quietly shifted onto the shoulders of workers through the National Insurance Scheme.” (PR/SAT)
The post Dems question NISSS role appeared first on nationnews.com.
