The National Insurance Scheme (NIS) will remain sustainable with significant cash injections from the State, Vice President Dr Bharrat Jagdeo said on Thursday.
This move aims to make the scheme not only “solvent” but also capable of increasing pensions for its contributors.
“We will have to ensure that the NIS not only remains solvent but can have major injections from the government so that they can meet their obligations to their contributors,” he said during his weekly press briefing at Freedom House.
The NIS has been paying out more than it is receiving, raising concerns that the entity may face bankruptcy.
Dr Jagdeo explained that while the government is a contributor to the NIS, it is not the owner, as there are also private contributors to the scheme.
However, he added that his administration will be providing increased financial support to the NIS to facilitate periodic pension increases.
“We will make major injections from the treasury – we’ve already done this – and we will continue to do so in a major way in the next term, to ensure that NIS pensions can increase periodically,” he stated.
Earlier today, President Dr Irfaan Ali announced a one-off payment for National Insurance Scheme (NIS) contributors who did not meet the required number of contributions to qualify for a NIS pension.
The sum, totalling over $10 billion, will benefit individuals aged 60 and over as of 31st December 2024, who have made between 500 and 749 contributions. The implementation of the process is expected to commence on Friday, 12th April, through the NIS office.
Individuals with 500–549 contributions will receive a one-off payment of $260,000; those with 550–599 contributions will receive $390,000; those with 600–699 contributions will receive $520,000; and those with 700–749 contributions will receive $650,000.
