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NIS’ 50th overshadowed by challenges to its viability- FITUG
The Federation of Independent Trade Unions of Guyana (FITUG) is deeply worried about the long term viability of the National Insurance Scheme (NIS).
There must be more voices raised to ensure the entity’s long-term health, the union body urged.
FITUG says there should be actions that will lead to solutions for NIS.
“The NIS remains practically the only contributory pension scheme for a large number of Guyanese. Therefore, the long-term survival and sustenance of the Scheme is not a question. There must be an unequivocal statement for its continuance, and all measures to ensure such possibilities should not be disregarded, indeed, must be pursued,” a statement said.
FITUG, in recognising the NIS on the occasion of its 50th anniversary, acknowledging the significant milestone for the Scheme, said that it is one worthy of celebration.
“For the working-people, past and present, the NIS represents an important pillar of support during their time of need and retirement. It has assisted in provided sustenance during difficult times and provides some degree of comfort to our workers during their golden years.”
FITUG, however, said that it also has not escaped its attention that the golden anniversary comes when the country commemorates the centennial anniversary of the nation’s first trade union organisation.
“It is a remarkable feat as our nation has the distinction of establishing the first workers organisation in the then British colonial empire. We draw this reference to point out that the call for the establishment of a scheme similar to the NIS emanated from the trade union movement.”
FITUG pointed out that history has recorded that at the first conference of Regional Trade Union Leaders held in January 1926, at the Public Building, leaders of the movement called on their respective governments to establish social security schemes.
“Indeed, it is to the credit of the movement and the forward-thinking outlook of leaders that today we commemorate the Scheme’s golden jubilee.”
FITUG stressed that as the Scheme celebrates, it does so not without also facing challenges and difficulties.
“The most recent actuarial report does not paint a blissful picture. Indeed, it is most depressing and for us a cause of great worry and anxiety. The actuaries have recommended several painful measures, which need to be considered against the contemporary context of Guyana.
“Our Federation had expressed our views on the suggestions proffered pointing out that they are not in the interest of the Guyanese working-people who stand to be deleteriously affected.”
Recently, in honour of its anniversary, Minister of Finance, Winston Jordan said he was cognisant of the challenges the NIS faces to maintain financial sustainability. This, he said, was revealed in a 2016 International Monetary Fund (IMF) report conducted on social security schemes in the Caribbean, the minister said.
An ageing population, slow economic growth and high unemployment were major contributors to the actuarial deficit that social security schemes face in the Caribbean.
He then called on the agency to review their sustainability plan noting that the several recommendations to reverse the trends were also in the 2016 IMF report
“I am not suggesting all the reform measures proposed by the IMF study are suitable for our country… however, I enjoin the Board of Directors and management to urgently review the scheme sustainability plan and come up with country-specific solutions to address these challenges,” he underscored.
This, he said, will help the scheme to offset the billions lost due to a reckless Colonial Life Insurance Company (CLICO) investment in a bygone period.
While NIS has billions of dollars, there is dwindling collection from its working force but more benefits to be paid to pensioners and others.
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