Give non NIS pensioners an additional ex gratia payment

Jan 17, 2024 Letters

Dear Editor,

There are several positives about the new budget. Almost every budget item has increased. With increases in budget, there will also be price increases, having effect on the poor, especially fixed income pensioners.

The government should be commended for increases in old age pension and the minimum NIS payments to $36K and $43K respectively.

Some pensioners would receive both their old age pension as well as their NIS and perhaps other private pensions as well, giving them a disposable income that exceeds $79K. But most pensioners are not so fortunate.

Most pensioners do not receive NIS, forcing them to make do with their old age pension that can barely buy a week’s basic ration for a family of four. Prices have skyrocketed since Covid. The pensioners are at a disadvantage. Government should consider an additional amount of say $20K to those pensioners not receiving NIS. Government has access to data to know who is (or not) receiving NIS. It should be noted that rural workers faced discrimination in pursuing state employment unlike urban and sub-urban dwellers and workers who have easier access to NIS office to query about NIS. Thus, unlike state employees they could not make contributions to benefit from NIS. Government should provide them with an additional ex-gratia monthly payment.

On NIS, government should streamline that pension system. Too many workers made contributions into the fund but for no fault of their own accurate records were not kept. Complaints abound among former sugar workers, farm workers, and low-income salaried employees in the private sector especially in rural areas. Many complained to me in course of my polling studies. Unlike state employees, whose NIS record was well kept and up to date that for private sector employees and the self-employed particularly those who worked for the sugar estate, rice industry, lumbering, and as farm workers are not to par. Their employers probably did not submit their contributions or made errors or NIS office could have erred or some other break down occurred that were no fault of the workers. The burden should not be on workers to supply evidence of their claim. Workers never kept record; they never developed that culture unlike in developed countries. The period of the dictatorship made it impossible to maintain records or have accurate records. Why should the workers be penalized.

It is most unfortunate that government has appealed the ruling of the court that sides with pensioner on NIS contributions. The lower ruling had merit. Instead of challenging the ruling, government should try to find ways to verify the claims of contributions of NIS contributors. It is not brain science.

One creative way is government could interview (former) work colleagues of a claimant to ascertain information on the claim. Affidavits could be pursued. Government should err on the side of pensioners not challenging them on claims of NIS contributions. Also, flaws in the NIS system should be rectified so that errors of the past are not repeated.

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