b'A N N U A L R E P O R T 2 0 1 7 - 2 0 1 8NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2018(Expressed in Trinidad and Tobago Dollars)1.Incorporation and principal activityThe National Insurance Board of Trinidad and Tobago (NIBTT) was incorporated under the National Insurance Act No. 35 of 1971 (The National Insurance Act), as subsequently amended, and commenced operations in 1972. The principal activity of NIBTT is to carry out the requirements of The National Insurance Act in providing social security benefits to the insurable population of Trinidad and Tobago. The registered office is located at 14-19 Queens Park East, Port-of-Spain, Trinidad and Tobago.2.Actuarial reviewSection 70 (1) of The National Insurance Act requires an Actuarial Review of the National Insurance System (NIS) at intervals not exceeding five years. The 10th Actuarial Review was conducted as at 30 June 2016 and was completed by International Social Security System (ISSA) on 30 June 2018. The main objectives of this review were to assess the long-term financial condition of the National Insurance Fund and recommend possible ways to improve contribution and benefit provisions.In general, contribution payments and benefit calculations are based on a system of wage classes. The contribution amount is paid by the employer and the employee in a proportion of two-thirds/one-third. Benefits are grouped into three funds: long-term benefits, short-term benefits and employment injury benefits. Each fund is credited with contribution income and investment income from which benefit expenditures and administrative expenses are met.Presently the fund is meeting all of its obligations.3.Legislative amendmentsThe following legislative amendments were proposed in line with recommendations of the 9th Actuarial Report:i.The increase in the maximum insurable earnings from $12,000 to $13,600, this increase is in the order of13.3 percent and is intended to cover an additional $1,600 of insured income which is in line with the increase in the national wage;ii.maintenance of the minimum monthly retirement pension at its present level of $3,000, at least until thebeginning of 2017; andiii.increase in the contribution rate by 13.2 percent.The increase in the contribution maximum earnings and the increase in the contribution rates were announced in the national budget to take effect from 4 July 2016. However, this amendment only took effect on 5 September 2016 due to legislative delays.4.Summary of significant accounting policiesThe principal accounting policies adopted in the preparation of the special purpose financial statements are set out below. The policies have been consistently applied to all years presented, unless otherwise stated.a.Basis of preparationThese special purpose financial statements are prepared in accordance with the financial reporting provisions of The National Insurance Act. In cases where the financial reporting provision is not clear or does not address particular situations, reference is made to International Financial Reporting Standards (IFRS) for guidance in determining NIBTTs accounting policy. The Board and management of NIBTT are currently reviewing its financial reporting framework to determine whether it can in the future prepare its special purpose financial statements in accordance with IFRS.40'