Clint Chan Tack
MINISTER within the Ministry of Finance Brian Manning rejected claims by Oropouche West MP Dave Tancoo that it’s unwise to lift the retirement age from 60 to 65.
In a press release on Friday, referring to feedback made by Tancoo in a newspaper article, Manning stated, “The tenth Actuarial Overview of the Nationwide Insurance coverage System (NIS) clearly signifies that the NIS in its present kind shouldn’t be sustainable in the long run.
He added, “The basis explanation for this sustainability problem is a demographic one.”
TT has an ageing inhabitants the place persons are residing longer, however are additionally having fewer youngsters. Manning stated, “The web results of that is that the working inhabitants (aged 15-59) is shrinking, whereas the retiree inhabitants is rising. The tenth Actuarial Overview highlighted that based mostly on inhabitants projections, the ratio of individuals within the working inhabitants to individuals of retirement age was 4 to at least one in 2016. That is projected to lower to lower than two to at least one by 2066.
He additionally stated Tancoo made a number of false statements about what growing the retirement age from 60 to 65 yr meant.
One assertion was this could see a rise in nationwide insurance coverage funds. Manning stated, “The advice of the actuaries to extend the retirement age is totally unbiased of contribution charges. There isn’t any connection between the 2, so this allegation has no foundation.”
One other assertion by Tancoo was the Nationwide Insurance coverage Board “is cashing in its investments to satisfy payments.”
Manning stated, “The NIB’s earnings from its investments in 2021, along with contribution earnings, was enough to satisfy its obligations to beneficiaries in 2021.”
He added, “So it’s a fallacy to assert that the NIB is ‘cashing in its investments to satisfy payments’.” Manning stated the Nationwide Insurance coverage Fund grew by $2.1 billion in 2021 to a internet worth of $30.7 billion.
The ministry and the NIB started consultations with the commerce union motion on February 23 about growing the retirement age from 60 to 65.
Conferences had been held with the Nationwide Union of Authorities and Federated Employees (NUGFW), Public Providers Affiliation and the TT Unified Lecturers Affiliation on February 23, April 12 and April 27, respectively.
Manning described all three conferences as fruitful.
He stated the ministry will proceed assembly with different commerce unions and chambers of business and commerce within the close to future.