NIA CHARLESTOWN NEVIS – Director and CEO of the St. Kitts and Nevis Social Security Board (SSB) Mr. Christopher Louard is leading engagements with employers and other stakeholders in Nevis to discuss reforms being proposed to ensure the sustainability of the Social Security Fund.
Mr. Louard was joined by Ms. Kamilah Lawrence, Public Relations Manager for the Social Security Board at a recent stakeholder meeting at the Social Security conference room at Pinney’s Estate, where they made a detailed presentation outlining the recommendations to employers and members of the Nevis Chapter of the Chamber of Industry and Commerce.
He disclosed why it has become necessary to reform the Federation’s social security system.
“We began in 1978 and we’re at a time in our history where we need to recalibrate what we currently have in place.
“So what we are doing currently is looking at parametric reforms, looking at all of the variables that make up our social security, specifically as it relates to our long-term benefit, which is our age pension, and making decisions that will lead to the long term sustainability of the Social Security Fund.”
The Board Director explained that the most recent Actuarial Report for the SSB submitted in 2021 showed that the Social Security Board’s total expenditure is exceeding its contribution income. He said with contribution income accounting for the largest revenue source for the Board, changes have to be made for the Fund to remain viable.
“We are at what we call an inflection point. We are seeing a change in terms of the ageing population and the changes in demographics where persons are getting older and living longer. In St. Kitts and Nevis, more persons are qualifying for our age pension and that means that we are paying out more than we are currently taking in in terms of contribution income. So we must look at all of these and make some changes.”
He highlighted two priority areas for reform- the qualifications and calculation for age pension, and the rate of employee/employer contribution.
The Social Security Board will continue its public outreach and sensitization campaign over the next few months to garner feedback and suggestions from the populace including public and private sector stakeholders, non-governmental organisations (NGOs), labour unions, and political parties, before ratifying the reform recommendations.