Increases to the minimum NIS pensions are paid upon approval by the Ministry of Finance

Please allow us space in your Letter Column to respond to several issues highlighted by Mr. L.A Camacho in your publication of March 12 in the letter `These NIS pensioners are now part of the living poor and are dying out one by one’.

He spoke on the issue of NIS providing Paternity Benefits for men. However, this continues to be a topical subject that cannot be addressed by NIS in isolation from the wider Society, including all Stakeholders, since the introduction of this Benefit will affect Labour, the Business Community, and all other parts of Society. The laws would also have to be amended to accommodate such a change.

On the issue of Survivor’s Benefit, please be advised that from the inception of the Scheme, this Benefit has always been payable to men, according Regulation 14 of the (Benefits) Regulations, which was further amended in 2015 to eliminate the gender bias.

Mr. Camacho also highlighted the issue of the rate of Old Age Pension. Please note that the National Insurance Old Age Pension is computed under the prescriptions of the Governing Regulation: 4 (b) of the (Benefits) Regulations, Chapter 36:01 of the Laws of Guyana, which states (inter alia):

“The weekly rate of Old Age Pension payable to an Insured Person who contributed on or after 14th August 1978, shall be forty percent (40%) of the Relevant Wage, supplemented by one percent (1%) of that Wage for each fifty (50) Contributions …”

“Provided that in no case shall the weekly rate of Old Age Pension exceed sixty percent (60%) of the Relevant Wage or less than Fifty percent (50%) of the existing statutory minimum wage.”

Relevant Wage is defined under the same Regulations as:

“The total Weekly Earnings on which Contributions are paid or credits are awarded, or Contributions are paid and credits awarded during a specified period, divided by the number of weeks of Contributions in those three (3) years.”

“Provided that to compute Old Age Benefits and Invalidity Benefits, Relevant Wage means the total weekly earnings on which Contributions are paid or credits are awarded…”

The last five years to the person attaining the age of sixty years or ceasing employment is used, whichever occurs first, divided by the number of weeks of Contributions in those best three years.

The National Insurance Scheme Pension population is over 57,000 with approximately 50% of that amount receiving over the minimum pension.

It should also be noted that increases to the minimum pensions are paid upon approval by the Ministry of Finance, and arrears are paid to coincide with qualifications.

We thank Mr. Camacho for seeking information and encourage him to contact our Public Relations Department for any future assistance.