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Luncheon dismisses claims of NIS financial problems – 16th Nov 2012

The Government of Guyana is saying that the National Insurance Scheme is not on the edge of a financial cliff and therefore there is no reason to worry. The administration on Thursday, sought to give that assurance as concerns were being raised about the financial standing of the NIS. An actuarial review of the NIS had hinted at some problems and the need for there to be urgent moves to address the concerns. The report recommended the raising of the pension age to 65 and for there to also be an increase in the contribution to the scheme, which would see a move from 13% to 15%. Financial analysts said such warnings could only mean that the NIS may be facing some financial problems or may be on the verge of same. Not so, says Cabinet Secretary, Dr. Roger Luncheon, who dismissed concerns about the financial state of the NIS as total nonsense. Dr. Luncheon also serves as the Chairman of the NIS Board.

And the state-owned media today quoted Finance Minister, Ashni Singh, as saying that the Government would not allow the NIS to fail. The NIS has been making some huge investments over the years and there has always been worry about the impact of those investments and whether the benefits were real. The Finance Minister said, the NIS is in good financial standing with an increase in payments being made to the body and hundreds of millions of dollars in contributions rolling in annually. The Minister said, the Government remains committed to the scheme and does not intend to see it fail.

But with all that said the administration is saying very little on that report and what really all those recommendations mean for the future of the insurance scheme.

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