By J. K. Roberts, Sound Public Policies Advocate

“At the NIS, our team proudly works to support the evolving needs of Grenadians.  We have made some changes to our operations and want to keep you informed”.  This is the Headline Message surrounding public announcements, consultations and advertisings which have been engaged in by the National Insurance Scheme (NIS), essentially from about February 2023. The touted changes include the introduction of an Unemployment Benefit, the gradual increases of the Contribution Rate until 2031 and of the Pensionable Age until 2029, twenty-five percentages increase in the Weekly Minimum Pension Payment, and adjustments to the Survivors Benefits. These changes along with the associated and consequential statutory amendments which have been approved by the Houses of Parliament this year 2023, can be regarded as the most comprehensive steps which affects employees and retirees ‘directly’, since the inception of NIS in April 1983, despite the repeated recommendations of various actuaries and the compelling cries of pensioners in the past many years for betterments and satisfactions.   Rightfully, the NIS is also on a campaign to encourage all small business owners, contractors, irregular or odd-jobbed workers and other alike individuals to appreciate being insured for its Self-employment benefits.

It should not be missed that the policies, decisions and actions of the NIS, like for all Statutory Bodies and State-Owned Enterprises, require the sanctions of the Government.  The affairs of NIS fall under the Government Minister who has been assigned the responsibility for Social Security, and it is to whom that the proposals and reports of the NIS are transmitted. Another point to remain in the mind is that everyone is mandated to be insured and to comply with the NIS, within legislative qualifications; and thus, the citizens are somewhat powerless to the dictates and directions of NIS, despite any misgivings and uneasiness on their part.  The underlying issue at play concerning the substance and impact of NIS’s Headline Message is about balancing the contending perspectives for the ‘credibility and viability’ of this main social security provider, as contemplated and advanced by the main parties (employees / Grenadians versus NIS / Government).  Chiefly; the favour or welcome for the pronouncements must be analyzed based on NIS’s present Transformation Agenda, as well as its track-record as been experienced under the different political administrations. We The People who are conscious and meticulous in “Keeping an Eye on the People’s Business” would be reminded of the telling document, “The National Insurance Scheme and the Public Debt”, published by Social Activist Ms. Sandra C.A. Ferguson, on Grenada’s 2014-2016 Structural Adjustment Programme supported by the International Monetary Fund.

Every unambiguous and uncompromising factor must be employed to the purported Transformation Agenda, so as not to give the impression that “Grenadians Face Pie in the Sky for Increases in NIS Rates”; as the said-named internet-circulated article expounds. Indeed; a central concern particularly for the youthful population with the new entrants in the job market, should be about the guarantee of obtaining adequate pensions, or age benefits, upon retirement.  In this regard; what ‘meaningful and wholistic and thorough’ changes are to be reflected in the operations of the NIS, such as in its enforcement of the compliance obligations of employers, innovative adventures with prudence by its Investment Committee, Government’s access and dominance to the National Insurance Fund (NIS Fund), and the general approach and resolve of the National Insurance Board (NIS Board)? That is; making reference to the earlier circulated article “Consign NIS Unemployment Benefit Into A Special Fund”, NIS should see it appropriate to assure the citizens that it has undergone drastic improvements in its administrative operations, especially in terms of the required integrity towards ‘compliance and surveillance’ regarding the deductions and recordings of the contributions for employees, as well as for the enhancement of the ‘capacity and liquidity’ and the ‘safety and sustainability’ of the NIS Fund.

The concern which the workforce should have about NIS’s boasted changes to its operations, with the focus of the workforce being on whether there would be favourable returns for meeting the increases in the Contribution Rate and the Pensionable Age, is quite relevant. Further to the areas of shortcomings in the operations of NIS as spelled above, it cannot be denied that there have been some ‘misleading and confusing’ rationales for those increases. Those increases were first advanced as the remedy to save the NIS from possible bankruptcy in the next ten or thereby years, having its existing portfolio of benefits, payments and overall administrative costs. Further to any verifications for those increases by NIS’s actuarial reports, the NIS also stirred the conviction and concurrence of the population by placing Grenada behind in implementing similar increases, amidst international trends. Afterwards, the officials come with the need to fund what has been described as a permanent Unemployment Assistance Benefit Scheme, which in view of the terrible financial revelations about NIS, prompted the call in the just referenced Article, for isolating, safeguarding and fortifying the accounts for this new benefit.  Anyhow; the Headline Message tends to justify those increases by means of all the changes which it conveys, and thus repositioning the NIS as being capable of financing more benefits, more claims and more services.

Certain issues must be reverberated for valid emphasis in the challenging scenario about social security which the local workforce faces. Many individuals of the low salary scale are retiring into poverty, due to having no trace of contributions to NIS besides having had to survive with inflation; and the scenario is more troubling when realizing that there are workers in the Public Service whose contributions are not paid by the Government. Are the proclaimed changes sufficient by themselves to bring about the required ‘recovery and sustainability’ of the NIS, and at the same time to engender ‘pride and confidence’ of the people for NIS? What are the ready provisions of the NIS for treating more “evolving needs of Grenadians”, the uncertain or unexpected risks to the NIS Fund, and the anticipated enactments for the Pension Reform and the National Health Insurance which is consistent with the findings of pertinent Study Projects including under the determination of the International Monetary Fund; without the infliction or the demand of ‘more sacrifices’ on the Grenadian people?  Indeed; what are the radical changes in its policies and operations, which ought to be pursued by a ‘responsible and responsive’ NIS?  

There is also the need for adjustments to be done in the membership of the NIS Board so as to promote and reflect efficiency, and amongst other reasons, equity in representation for the Self-employed and Voluntary contributors. This must be seen in the same manner as the need for appointing inspectors to enter and to “require the production of any document relating to contributions or liability to make contributions” at any premises of likely employment. Moreover; shouldn’t NIS’s Investment Committee also establish and / or expand partnership with the Grenada Development Bank, for spearheading and supervising imperative ‘sovereign projects’, particularly in the areas of agriculture and housing on Government’s properties?  Further to the revenues which this institutional collaboration would generate for NIS, it should be appreciated that there would be the generation of employments and other economic spinoffs, including the revitalization of the Marketing and National Importing Board for foods supply?

The state of NIS as exposed to the public is ‘complex and chronic’ for arriving at any definite closure, especially when a concerned individual is trying to reconcile the various data.  Transparent, current, sound or relevant, and accessible data must be the order of the day to quell or prevent suspicions and misconceptions on significant national issues.  As with the case for most Government’s financial reports, it is imperative and desirable to have the consideration or the inclusion of pertinent statements by the Director of Audit in analyzing the operations of the NIS.  Although the figures for the first nine months of 2022 are unaudited as presented in the 2023 National Budget, it is noted that NIS possesses the most assets of all Government’s statutory entities. Outside of accounting jargons, how must the figures be interpreted about the NIS?  That is; $24.0 million in Revenues against $104.4 million for Expenditures (a deficit of $80.4 million) with $937.5 million in Assets, $933.9 million in Equity and $3.5 million in Liabilities.  What is the role and impact of the various investments on the NIS Fund?  What is the comparison of the contributions collected for employees with the returns from the investments made?  What proportion of the total expenditure goes towards the payment of pensions and other benefits?

The exposure of the desperate financial position of the NIS is reflected, or has been heightened from about 2020, in its decision to effect an increase from 9% to 11% in the contribution rate, to earn an estimated $18.8 million from the sale of buildings which were purchased from the Government some years ago, and to break several term-deposits totaling large millions of dollars.  It has also been observed that the demonstration of Corporate Responsibility by NIS in terms of community outreach, has been drastically reduced over the past decade, including the Christmas cheers to ‘special-citizens’ homes and the scholarship awards programme for secondary school education but which now seems to be crashed.

The operations of the NIS are being governed by a detailed legislative framework, but which practically does not realize the security of ‘retirement interest or pension benefits’ for all employees; especially those employees in the domestic, construction, retail and apprenticeship fields. The framework comprises the Principal Act, the National Insurance Act (CAP. 205) together with about eleven Subsidiary Legislations or Principal Regulations; and over the years the framework has being experiencing regular amendments to its diverse aspects. The inherent complications for the average citizen to follow and enjoy the legitimate provisions and products of the NIS, become more ‘tedious and disgusting’ when those amendments are made and implemented outside the knowledge and reach of the people. How ‘responsible and ‘responsive is NIS in ensuring the disadvantaged employees, who also for the most part is ununionized and unlettered, are not denied or not to lose their rights and obligations?

All pertinent pointers are that the Grenadian society has being inclining to support delinquency, mediocrity, corruption and exploitation, and to be satisfied with no concern for legal and moral accountability and for anyone experiencing consequences for white-collar crimes.  However; it would be pathetic for the NIS to be an institutional player in this rapidly budding culture, especially with the trend and ‘advantage’ for electronic / on-line transactions. For example; what is the ‘meaning, intention and expectation’ of NIS to communicate vague information to beneficiaries?  What could be considered as the ‘standard letter’ being sent to individuals who are entering retirement, reads in part thus : “Please be reminded that according to the National Insurance (Claims and Payments) Regulations, the time for claiming an Age Benefit is three months from the date of your sixtieth birthday.  Should you fail to apply within the three-month period from your 60th birthday, you may lose a portion of your age benefit”. Then adding insult to injury, the applicant completes the Claim For Age Benefit, with the section on Work History (April 1983 – present) asking thus : “Please list all employers you have worked with in Grenada commencing with the most recent”. For much questioning; all this ‘processing and signing’ of the claim-form happens without NIS having the ‘good will and good faith’ to give a printed text of its recorded particulars on the applicant, for mutual verification or for further appropriate actions. The NIS can be challenged on a lot of issues from many fronts or dimensions, including on its extent of keeping Grenadians informed and of honoring the information.  Within the context of the Headline Message about its changes, it is the responsibility of the NIS to respond to all those pensioners who have not discovered any change with their Weekly Pension Rate; that is, clarifying to the public whether or not the 25% increase in the Weekly Minimum Pension Payment is for a particular class of pensioners.