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National Insurance Board National Insurance Board National Insurance Board National Insurance Board of Trinidad & Tobago (NIBTT) of Trinidad & Tobago (NIBTT) of Trinidad & Tobago (NIBTT) of Trinidad & Tobago (NIBTT) ILO TRAINING COURSE ON SOCIAL PROTECTION AND FORMALIZATION 14-17 March 2017 - Port of Spain, Kapok Hotel Bernard Smith- Manager Research & Development This Presentation Will Cover Overview of Social Security Overview of the NIBTT Financing Provisions NIS Benefits Benefit Improvements Self Employed Financing Provisions

What is Social Security? Ministry of Social Development NIBTT And Family Services Social Social Social Welfare Insurance Welfare System is based on System is un-funded the contributions of by beneficiaries and participants and Social the benefit is usually benefit is not means- means tested. Security tested National Insurance Board of Trinidad & Tobago The NIBTT commenced operations 44 years ago on April 10, 1972 MANDATE "To operate and manage the National Insurance System" MISSION "To deliver meaningful Social Insurance products and quality service to our customers" VISION "Excellence in the provision of Social Insurance products and Services" The National Insurance Board of Trinidad and Tobago (NIBTT)

Financing Provisions � National Insurance contributions are compulsory for employees and unpaid apprentices registered or eligible to be registered under the system � Contributions are weekly fixed payments in relation to wages/salaries of the insured person determined under an earnings class structure. � Persons ≥ 16 years and ˂ 65 years earning a minimum of $200 weekly are eligible for coverage � Payment of the contribution is done partly by the employer and partly by the employee in an approximate ratio of 2:1. Recent Changes to Financing Provisions Year Contribution Rate 2014 12.0% 2016 13.2% 2. Maximum Insurable Earnings (MaxIE) and Minimum Insurable Earnings (MinIE) are to be increased as follows: Year MinIE (Per Month) MaxIE (Per Month) 2014 780 12,000 2016 867 13,600 These changes took effect on September 5 th 2016. *US $1.00 _ TT $6.79

Earnings Classes & Contributions (based on 13.2% contribution rate) Assumed Employee's Employer's Total Earnings Average Class Z Weekly Earnings Monthly Earnings Weekly Weekly Weekly Class Weekly Weekly Contribution Contribution Contribution Earnings I 200 - 339.99 867 – 1,472.99 270.00 11.90 23.80 35.70 1.79 II 340 - 449.99 1,473 – 1,949.99 395.00 17.40 34.80 52.20 2.61 III 450 - 609.99 1,950 – 2,642.99 530.00 23.30 46.60 69.90 3.50 IV 610 - 759.99 2,643 – 3,292.99 685.00 30.10 60.20 90.30 4.52 V 760 - 929.99 3,293 – 4,029.99 845.00 37.20 74.40 111.60 5.58 VI 930 – 1,119.99 4,030 – 4,852.99 1,025.00 45.10 90.20 135.30 6.77 VII 1,120 – 1,299.99 4,853 – 5,632.99 1,210.00 53.20 106.40 159.60 7.98 VIII 1,300 – 1,489.99 5,633 – 6,456.99 1,395.00 61.40 122.80 184.20 9.21 IX 1,490 – 1,709.99 6,457 – 7,409.99 1,600.00 70.40 140.80 211.20 10.56 X 1,710 – 1,909.99 7,410 – 8,276.99 1,810.00 79.60 159.20 238.80 11.94 XI 1,910 – 2,139.99 8,277 – 9,272.99 2,025.00 89.10 178.20 267.30 13.37 XII 2,140 – 2,379.99 9,273 – 10,312.99 2,260.00 99.40 198.80 298.20 14.91 XIII 2,380 – 2,629.99 10,313 – 11,396.99 2,505.00 110.20 220.40 330.60 16.53 XIV 2,630 – 2,919.99 11,397 – 12,652.99 2,775.00 122.10 244.20 366.30 18.32 XV 2,920 – 3,137.99 12,653 – 13,599.99 3,029.00 133.30 266.60 399.90 20.00 XVI 3,138 and over 13,600 and over 3,138.00 138.10 276.20 414.30 20.72 The National Insurance Board of Trinidad and Tobago (NIBTT) National Insurance Benefits Employment Short-Term Benefits Long-Term Benefits Injury Benefits Injury Allowance Retirement Sickness Medical Expenses Pension Funeral Grant Disablement Grant Maternity Pension Invalidity Grant Grant Survivors Allowance Death Benefit Widow / Widower Special Maternity Widow / Widower Child / Orphan Grant Child Dependant Parent Dependant Parent Re-Marriage Re-Marriage Grant Grant

Coverage Active Insured 519,926 Inclusive of 1,352 domestics Key Labour Market Indicators Indicator June December 2015 2015 Unemployment 3.2 3.5 Persons with Jobs (000’s) 628.0 621.6 Labour Force (000’s) 641.1 643.9 Labour Force participation 61.0 60.4 rate (%)

Extension of Coverage to Self-Employed 102,353 SEP in 2015 16% of labour force 37,715 SEP aged 50 and over Average earnings of $6,672 for males and $4,625 for females (2013) Extension of Coverage to Self-Employed Benefits proposed Long-term (retirement, invalidity, survivorship) Short-term (incapacity, maternity, funeral grant) Age credits for those aged 50 to 56 Co-payment of contributions for low-income SEP (earning less than $3,000 per month)

Extension of Coverage to Self-Employed Age credits . It is estimated that the cost of the age credits is TT$108 million. When expressed in terms of general average premium, the age credits increase the GAP of the SEP system for Long-term benefits (excluding administrative costs) from 10.87 to 11.04 per cent  Co-payment of contributions for low-income SEP . Estimated that the cost of the subsidy to low-income SEP (earning less that TT$3,000 per month) is TT$3 million in the first year of application and TT$44 million in total for the first 5 years. This includes the cost of the full subsidy during the first year. Extension of Coverage to Self-Employed Proposed contribution rate: 12.4% 12% for Long-term benefits and 0.4% for Short-term benefits Equity with salaried workers Fund projections 40 Billions 30 20 10 0 2013 2018 2023 2028 2033 2038 2043 2048 2053 2058 2063 SEP Salaried employees

Extension of Coverage to Self-Employed � Projected coverage rate Year Coverage rate 2015-16 15% 2016-17 20% 2017-18 30% 2018-19 35% 2019-20 40% - - - Linear increase From 2059-60 60% Minimum Earnings & Pension � As at the June 2015 : � approximately 57,000 contributors or 11 percent receive earnings below the minimum wage � A social security minimum pension between 40% and 80% of the minimum wage is normally considered appropriate for taking care of persons with low earnings � The NIS minimum pension of $3,000 represents 115% of the minimum wage (established at $2,600 per month) � 97% of current pensioners receive the minimum pension, the NIBTT subsidizes the difference between what is actually earned based on contributions, and the minimum pension

3 Year Benefit Payments Claims FY 2013 FY 2014 FY 2015 % Increase % Increase 2013-2014 2014-2015 Beneficiaries 164,660 168,286 177,607 2.20% 5.54% Long-Term 132,253 137,481 144,804* 3.95% 5.33% Beneficiaries Benefit $3.56 Bn $3,92 Bn $4.22 Bn 10.08% 7.66% Expenditure Long-Term Benefits The long-term benefits (LTB) branch showed an increase in the number of recipients and in the value of benefits paid. This group comprises Retirement Pension, Invalidity and Survivor’s Benefit recipients Payment to this group totalled $3,904.97Mn or 92.63% of total benefit expenditure. Benefit Type Beneficiaries Benefit % of Total % of Total Expenditure LTB LTB Retirement Pension 96,395 $3,362.09Mn 86.10% 66.57% Retirement Grant 4,568 $139.15Mn 3.15% 3.56% *Survivors Benefit 39,644 $329.01Mn 27.38% 8.43% Invalidity 4,197 $74.62Mn 2.90% 1.91% Total 144,804 $3,904.87Mn 100% 100% % of Total 81.53 Beneficiaries *Survivors Benefit plus Survivors Grant

Questions? www.nibtt.net Improvements to the Benefits • Maternity, Special Maternity, 50% NIS Grants Minimum Retirement, Funeral Minimum Survivors’ Benefit Prior to March From March Comments 2013 2013 Paid until age 16 Child $400 $600 (age 19 if a full- Orphan $800 $1,200 time student) Widow/ Widower $400 $600 Dependent Parent $200 $300 If both alive: $300 each Dependent Parent $300 $600 If only one alive: $600 each