GREATER Chaguanas Chamber of Commerce president Richie Sookhai said the covid19 pandemic has highlighted flaws in the National Insurance System (NIS).

He made this comment on Sunday in response to statements made by the Prime Minister at a news conference at the Diplomatic Centre in St Ann's on Saturday.

Rowley said many people who have whose income had been affected because of the pandemic, could not access grants being offered by the Government because of the practices of some businesses. He said some businesses have been hiring people and not reporting the existence of those workers to the National Insurance Board (NIB).

Sookhai said, "The pandemic has affected both the formal and informal economies." He said this includes showing up cracks in the NIS that have existed for years. "With hundreds out of work and seeking assistance from the government, many are unable to access funding as they are either not registered or haven't contribute to the fund in years."

Sookhai said, "We also have a situation where many non-nationals working in the country are also not registered with NIS." He said these people are "unable to seek funding, even though they are here legally, while working for various industries."

Sookhai said, "It’s up to these companies to ensure their employees, no matter the job description, are registered. Not only is its illegal but also immoral as this practice puts many at a disadvantage especially at a time like now”

Greater San Fernando Chamber of Commerce president Kiran Singh said some employers may be guilty of this practice. "The majority of businesses are very compliant with their tax obligations especially those that fall within the SME sector. Singh also said many employees who are registered with the NIB have submitted applications for relief grants but are still to receive them.

At a virtual forum hosted by the Development Bank of Latin America (CAF) on June 9, Finance Minister Colm Imbert said the 10th actuarial report into the NIS, he said,showed the proportion of people over 60 being supported by the NIS increased from 11.7 per cent in 2005-2007 to 14.2 per cent in 2013-2016.

While the life expectancy of the 60-plus population has increased steadily over the last 50 years, he pointed out, birth rates have decreased during the same period. The NIB, Imbert continued, has projected that by 2066, the 60-plus population in TT will be almost double, while the group the population relies on to sustain the fund (NIS) – the 16-59 age group – will decrease by at least 25 per cent.

Imbert said no decision has been taken and various different options are being considered to sustain the fund, such as increasing the retirement age from 60 to 65 or fully incorporating informal workers into the NIS. He said this could provide needed coverage for the most vulnerable in society and provide support for the NIS' long-term sustainability.

The post Sookai: Pandemic exposes NIS flaws appeared first on Trinidad and Tobago Newsday.

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