Imbert calls for review of retirement age

In delivering the feature address, Imbert said while the Government had not taken a decision on the matter and it was not a Government policy, in his view, raising the retirement age from 60 to 65 was an important matter that required, “careful consideration and discussion, since many other countries have gone this way to protect the viability their national pension schemes.” He highlighted the history of the National Insurance Scheme as well as the need for its sustainability, adding that based on the ninth actuarial review, a mix of shortterm and long-term reforms were recommended to strengthen the national insurance system.

These recommendations informed Government’s policy decision to increase NIS contributions last year.

He said, “They [Actuarial Review] also project that (the) number of persons at pensionable age will grow from just under 200,000 now to over 400,000 in 2063, while the population aged 16 to 59 who support the retirees though their contributions, will decrease by almost 25 percent over the same period.

“Most importantly, they tell us that the number of working-age persons for each person aged 60 and over will fall dramatically from 4.5 to 1.6 over the projection period. In addition, the total number of pensioners is projected to more than double by 2063, while the number of contributors will decrease over time. In fact, as people live longer, the ratio of contributors to pensioners is expected to decrease from 3.7 to 1.1 over the next 50 years.” Financial projections in 2013, he said, showed that the NIS fund would have been depleted by 2030 if contributions had not been increased. To protect the insurance system, he said, actuaries recommended, “that the Government examine the possibility of an increase in the retirement age from age 60 to age 65 over the period 2025 to 2060.” Although recommendations were made, as far back as 1991, for changes to the system nothing was done. “In 1991, the scheme had 323,000 contributors representing 67 percent of the labour force at the time. The contribution yield in 1991 was estimated to be $207 million. In 2016, a further 25 years after that, the annual contributions reached $4.25 billion. Twenty times more than 1991 and the number of contributors had risen in 2016 to 516,000 representing now over 80 percent of the labour force.

After outlining the eligibility for national insurance and pension, Imbert said, “My research tells me these criteria have remained unchanged for 45 years almost since inception. In 1991, the maximum amount for retirement pension for a person in the highest earnings class was $338 per month. In 2017 pension is now $3000. Almost nine times what it was 25 years ago.” In 1991 there were 31,000 pensioners while in 2017 there are approximately 105,000 pensioners.

“As far back as 1991 it was determined that the retirement benefits scheme administered by the NIB was in need of major reform, there were issues at that time, with the overlap of the old age pension, as there are now… and there was a recommendation that linkages with the private sector should be addressed. These concerns are as valid today as they were 25 years ago,” he said.

The building project cost the Government $343 million excluding Value Added Tax, and the unit cost of construction was $2,000 per square feet. The fivestorey building took under two years to be fully completed and outfitted. The building designed by Bouygues Batiment Trinidad and Tobago, is soon to be certified Class A, leed Silver Certified – a US Certification which represents Leadership in Energy and Environmental Design.