A former industrial relations officer for the SVG Teachers’ Union who is now seeking political office is urging workers in St. Vincent and the Grenadines to pay attention to changes being implemented at the National Insurance Services (NIS).
Andrew John accused the Unity Labour Party administration of “wantonly” squandering the resources of the social security agency.
“… when you retire, you are not sure that there is going to be anything there for you,” he told a New Democratic Party (NDP) village meeting in Enhams on Aug. 28.
“And this is a serious matter that I want you to pay close attention to. Pay close attention to it,” said John, who has been identified as the NDP’s candidate for South Windward in the next general elections, constitutionally due in February 2026.
He said that a new regime came into effect at the NIS on June 1, when workers and employers jointly began paying one percentage point more as part of the government’s plan to increase the contribution rate from increasing from 10-15% over the next two years.
The first increase came into effect on June 1, when the contribution rate moved from 10 to 12%.
“Go and read about it. They made about five changes to the NIS that would affect us, that will affect you as workers, you as unemployed persons,” John told the gathering and media audiences.
He said the one percentage point increase in the contribution rate was necessary because
“they say to you, the NIS money is going down, and so we need to replenish it.”
John said that while a one percentage point was added to the contribution rate, some people were wondering why so much money was deducted from their earnings.
“They didn’t explain it to you. But on examination of the changes, we realise that they increased the threshold from $4,333 to 5100 and plus dollars, so that you have to pay more now,” John said.
“So added to the 1% that was added, what equals to maybe another percentage point was added when they increase the threshold. So we’re almost, you’re almost paying 2% and more.”
John said a third change was that the government increased the penalty for people wishing to take their pension early, adding that people will now lose 8% of their pension — up from 6% — for each year that they receive it before it is due.
“You now have to pay 8% per year, which means that you are losing 40% if you’re trying to take your pension at age 60. You’re going to lose almost half of that NIS. These are some of the changes which were implemented, and they are all affecting you negatively.”
John said that another change is that people cannot take their pension early if they are not deemed to be fully retired.
“Now, these are some of the things that we have to pay attention to, because after 23 years, we are seeing the NIS struggling,” John said.
He said that despite this, the government continues to borrow money from the NIS.
“The last money they borrowed — and I could only say the last from what they told us — was that $18 million that they used to build the hotel just below us here that seemed to be locked up for some reason.”
He was referring to the hotel that the government built at Diamond, which is going to be run by Holiday Inn.
“We hope that they get it open soon so that we could start having the monies we paid to the NIS, $18 million a lot of money,” John said.
Typical Gonsalves ULP, burn the house down on your way out.
When are they going to figure out a country you can’t find on the map needs invent some new things to be relevant. Such a country should start selling water and get rich.