It is prudent to invest wisely and to have Actuarial Reviews conducted regularly to ensure a proper balance between contributions and expenditure.
These reviews take into account the increasing levels of wages of the insured population, as well as the relevance of the levels of benefits paid. The benefits paid are a percentage of assumed average earnings in the sixteen (16) contribution classes.
The Class groupings recognise that employees work for different levels of wages and should be expected to contribute and earn benefits according to their accustomed levels of living.
The National Insurance legislation was amended in 1999 to give effect to increases in benefits and contributions. Additional changes to the National Insurance System took place on March 01, 2004 when a change was effected to the contribution rate from 8.4% to 9.9% in steps from January of each year from 2004 to 2006 of assumed average earnings in the then twelve classes up to an income ceiling of TT$4377.00 monthly. At the same time, significant improvements were made to the level of benefits received by insured persons and their beneficiaries.
The National Insurance Legislation was further amended in 2008 after the conduct of the 7th Actuarial Review. The key changes are (among other things) -
- the increase in the minimum monthly retirement pension from $1,000.00 to $2,000.00 and
- the implementation of a slow and gradual increase in the contribution rate over a five (5) year period as shown in Table 1.
- to increase the minimum monthly retirement pension from $1,000.00 to $2,000.00 and to implement a slow and gradual increase in the contribution rate over a five (5) year period - January 01, 2006 9.9%; 07 January 2008 10.5%;04 January 2010 10.5% and 02 January 2012 11.4%.(25% increase in all benefits rates)
Further legislation amendments were implemented after the 8th Actuarial Review was conducted in 2012. The key changes are (among other things) -
- The Maternity Grant and Special Maternity Grant increased to $3,750.00
- Funeral Grant increased to $7,500.00
- Minimum Retirement Grant increased to $3,000.00.
- Sickness and Maternity Allowance increases ranging from $120.00 to $1,384.80.
- Invalidity and Survivor’s increases ranging from $419.79 to $2,983.76.
- Employment Injury Benefits increases ranging from $173.33 to $2,000.27.
- The Minimum Survivor’s Benefits in respect of spouses, children, dependent parents was increased to $300.00 per parent and orphans increased to $1,200.00.