The National Insurance Scheme (NIS) in Grenada has recorded an increase of EC$10.5 million (One EC dollar=US$0.37 cents) in contributions last year when compared to the EC$85.6 million received in 2020.
NIS also announced that its reserves had surpassed one billion dollars for the first time.
According to the 2021 annual report, which is set to be laid in Parliament at its next sitting on Wednesday, the financial performance of the National Insurance Board continues to record increased expenditure and reduced income.
“The Reserves grew by EC$25.9 million to EC$1.01 billion as of December 31, 2021,” according to the Report, noting that the NIB’s Reserve grew by 2.6 per cent in 2021.
“The Reserve at the end of 2021 stood at EC$1.01 billion compared to EC$988.3 million in the previous year. Over the last five years, the Reserves had an average annual growth of 2.1 per cent, accumulating at a much slower rate than previous years.
“As projected in the 11th and 12th Actuarial Reviews this decline in reserve growth will persist if actuarial recommendations are not implemented,” said NIS director, Dorset Cromwell, explained in his report which forms part of the annual report which said that benefit expenditure totalled EC$116.5 million with pension expenditure of EC$97.8 million.
Total expenditure for the NIB amounted to EC$127.1 million while payments were made to 12,099 pensioners monthly and to 11,843 other beneficiaries. Contribution income increased from EC$85.6 million in 2020 to EC$96.1 million in 2021.
“As projected in the 12th Actuarial Review, the total expenditure would continue to be higher than contribution income. The Board’s Investment Income totalled EC$56.4 million. Administrative expenditure totalled EC$9.4 million for the 2021 financial year,” said outgoing NIB chairman, Christopher Husband.
“This expense as a percentage of contribution plus benefits decreased from 5.2 per cent in 2020 to 4.4 per cent in 2021 which is still well below the statutory limit of 12 per cent,” he added.
Contribution income for the 2021 financial year totalled EC$96.1 million and this is a 12.3 per cent increase in relation to contribution income in 2020.
“Collections from private sector employers totalled EC$66.8 million and government, EC$29.3 million. Annual growth in contribution income averaged 6.6 per cent over the last five years,” the report explained.
The report noted that during 2021, a total of 2,582 persons contributed to the NIS for the first time, an increase of 8.8 per cent over the 2020 figure.