Fellow citizens, nationals, residents, and contributors to Social Security, as Prime Minister and Minister of Social Security, I greet you on the 46th anniversary of the St Christopher and Nevis Social Security Board observed today Thursday 1st February 2024.
As a mature fund, now in its 46th year of existence, and standing with reserves of over $1.724 billion, the fund has proven its mission “to provide the best possible benefits to all eligible persons, guaranteed by sound financial management and efficient administration.” With fortitude, the Social Security fund has withstood the challenges of growth, economic activity, and pandemics including Covid 19, whereby the fund expended over $25 million to contributors whose livelihoods were affected. Just last year in 2023, the Board paid $141.7 million (unaudited) in benefit expenditure across the benefit types.
Today, all insured persons can rely with confidence on the ability of the Social Security Fund to pay benefits at their most vulnerable periods. Apart from its usual scope of duty, Social Security as a good corporate citizen contributes annually to healthcare, national security, youth development, and education amongst others. The Board sees its support in these areas as fundamental to the longevity of the fund and complementary to nation-building.
Over the last four and half decades, our Social Security fund has been praised for its efficient management, growth, and ability to continue to meet its obligations to its stakeholders without difficulty or injections from government funding. This is attributed to adherence to the act and regulations, competent administrators, and staff who have served the organization over the last forty-six years. I take this moment to recognize all former Ministers, boards, management, and staff who have contributed to the success of our Social Security system.
Notwithstanding this phenomenon, we acknowledge also how equally important and critical it is to bolster and reinforce the current structure in order to advance transformational reform. I reiterate as I did in my last Minister’s broadcast on the occasion of the 45th anniversary of social security, that this resolute act will ensure the vitality and assurance of the social security fund for decades more to come. Prudent management and fiscal financial responsibility have affirmed our fund well into its 46th year.
Noting this important step, and in accordance with international standards, the Social Security fund undergoes an Actuarial Review triennially. These reviews provide detailed projections of the performance and vitality of the fund based on current and futuristic analyses. The 13h Actuarial Review was tabled before cabinet last year and the report can be viewed on Social Security’s website at www.socialsecurity.kn.
To summarise, the reports assert that Social Security’s current state to meet its obligations to pay benefits is sound. However, with increased life expectancy, improved standard of living, and acknowledging the intricacies of a maturing fund, it would be fiscally irresponsible to ignore the call to reform the structure of Social Security. Without a recalibration of its operational structure, our robust fund can be depleted by 2040 or thereabout. My government is committed to seeing that the Reform Agenda is carried out and that the best possible solutions are implemented over time to ensure that Social Security remains a viable source of income protection well into the next four decades and beyond.
Therefore, Social Security has adapted its 45th-anniversary theme TRANSFORM, REFORM THRIVE as its theme over the next year as it continues its work in the social security reformation.
At the start of the year, this work was demonstrated with increases in three benefit types. The minimum age pension was increased from $430 monthly to $500, Assistance Pension from $255 to $350, and Funeral Grant from $2500 to $3500 upon the death of an insured person. These changes and others will be implemented to support the mission of the fund.
Throughout the year, Social Security will enhance its public education and sensitization programs to ensure that all stakeholders are aware of the goals and objectives of Social Security and the Roadmap to Reform.
As Minister with responsibility for Social Security matters, I make an earnest plea to Employers and the Self Employed to remain compliant and respond to your obligations to Social Security so that you and those under your charge can have access to Social Security benefits in sickness, maternity, retirement, and others. I encourage all Employees to pay keen attention to social security matters particularly as they relate to one’s contribution status.
Social Security is an important aspect of any civil society, and my government is committed to its continued robust growth and meaningful contributions to our existence.
I pray for God’s continued blessings on the fund, the administrators, and the people of the Federation of St Kitts and Nevis and take this opportunity to acknowledge the work of our Social Security’s forefathers, past and present management and staff and pledge my government’s continued support to the work of Social Security. Your invaluable work and commitment are commendable and sincerely appreciated by contributors near and far.
HAPPY 46th ANNIVERSARY SOCIAL SECURITY.
God Bless Social Security as we continue to Transform Reform Thrive, Social Security Realigned.