NIS 55 Anniversary

NATIONAL INSURANCE SCHEME 1967-2022

55th Anniversary

It’s Your Future, Secure It!

Welcome to the NIS

HISTORY OF NIS

F

or generations, the National Insurance Scheme (NIS) has remained a vital lifeline for Barbadians as they navigate their productive lives and even after they retire.

The Barbados National Insurance Scheme (NIS) began operations on June 5, 1967. It currently covers all employed and self-employed persons and offers five main types of social security benefits with payments from three separate funds. The National Insurance Fund covers shortterm benefits, long-term benefits or pensions and employment injury benefits, while the Unemployment Fund and Severance Fund cover unemployment benefits and severance payments, respectively. All benefits are financed by contributions which are levied on employment earnings up to a wage ceiling and are paid by employers, employees and self-employed persons.

The NIS was formed through an Act of Parliament, which aimed to create “a system of national insurance and social security for Barbados providing payments by way of sickness benefit, maternity benefit, invalidity benefit, funeral grant, old age contributory grant or pension, noncontributory old age pension and survivors’ benefit and

such other benefits as may be specified in the Act; to substitute for the Workmen’s Compensation Act, 1963, a system of insurance against personal injury caused by accident arising out of and in the course of a person’s employment and against prescribed diseases and injuries due to the nature of a person’s employment; to establish for the administration thereof a National Insurance Board and a National Insurance Fund” The Act which was known as the National Insurance and Social Security Act established the National Insurance Board which is comprised of 2 persons to be appointed by the Minister by instrument in writing as representatives of employers’ associations; 2 persons to be appointed by the Minister by instrument in writing as representatives of trade unions; 3 other persons to be appointed by the Minister by instrument in writing; the Chief Labour Officer, ex officio, or his nominee; and the Director of Finance and Economic Affairs, ex officio, or his nominee. A member shall, subject to this section, hold office for such period not

exceeding 3 years, as the Minister may direct in the instrument appointing such member.

National Insurance Scheme (NIS) was also hailed as a model for other Caribbean territories as it is one of the few offering unemployment benefits.

That comment came from Minister of Labour and Social Partnership Relations, Colin Jordan, as he addressed a virtual church service marking the Scheme’s 54th Anniversary. “While managing six funds – National Insurance, Unemployment, Severance, Catastrophe, Sugar Workers’ Provident and the Retraining Account – the NIS continues to provide coverage in times of sickness, maternity, invalidity, disablement, old age, unemployment and offer other benefits such as funeral grants, death benefits and survivors’ grants or pensions,” the Minister stated..

Statement from the Prime Minister

The Honorable. Mia Amor Mottley, QC, MP, Prime Minister of Barbados

S

o often, when it is necessary to consider the character of an individual, we pay attention to how he or she treats others.

When it comes to the character of a nation, in the final analysis, the thought is not much different: our conclusion is largely based on how that country treats its people.

In Barbados, any measure of our character as a nation must take into consideration our National Insurance Scheme, one of the most ubiquitous arms of Government. For more than half a century it has been reaching into almost every Barbadian home at that moment when our citizens are at their most vulnerable, providing not just financial relief, but the kind of peace of mind necessary to preserve the dignity of the individual and the cohesion of the family.

Today, it is my absolute pleasure to congratulate the Board of Directors, Management, and staff of the National Insurance Department for 55 years of exemplary service to the people of Barbados.

For more than half a century you have been, literally, a saviour to countless citizens!

Since June 5, 1967, our social security scheme has served us so well that it has been consistently a point of reference for others, near and far, seeking to deliver to their populations, those services from the

NIS that we now take as par for the course.

From employment injury to sickness and maternity benefits that cover even the selfemployed; to funeral grants and survivors benefits, the NIS has been truly a lifeline to Barbadians.

However, for all of its landmark advances and innovations since its formation, no period in its history has been as trying, or as critical to the survival of our citizens and the preservation of our national peace and security as 2020 and, to a lesser extent, 2021.

COVID-19 tested every one of us, but not like it did the National Insurance Department in carrying out its mandate to serve Barbadians.

For much of this period, commercial activity was almost at a standstill, retrenchment occurred on a scale that for us was previously unimaginable, unemployment reached unprecedented levels, and you, the management and staff of the NIS were called on to process claims at a volume and rate for which your systems were never designed.

The NIS processed 52,282 unemployment benefit claims in 2020 and paid out a whopping $147.5million. Last year claims fell to 28,071, and payouts totaled $44.6 million. Overall, it paid out$777.1 million in benefits in 2020 and $785.6 in 2021. Your contribution to the sustainability of the Barbadian family cannot be questioned.

So, celebrate your 55 years. It is not just an anniversary, but an accomplishment marked by distinguish service to the country and its citizens.Blessings to you all.

HAPPY

Congratulations to the National Insurance Scheme, Barbados on the celebration of 55 years of ongoing commitment and service to the people of Barbados.

May you continue to be a caring, efficient and reliable social security provider for all you serve.

From the Board, Management and staff of the National Insurance Corporation of Saint Lucia.

Statement from the Minister of Labour

T

he National Insurance Scheme (NIS) can be proud of its growth through diligence and service, and filling a critical need of providing adequate insurance coverage to the people of Barbados for 55 years.

With more than 108,000 persons registered with the NIS, including selfemployed persons, a range of benefits is provided to eligible persons. In 2021, the National Insurance Office paid $785.6 million in benefits from the National Insurance Fund and $44.4 million in benefits from the Unemployment Fund. The NIS can also boast of a diversified portfolio of more than $4 billion in assets at the end of March 2022, which places it among the top financial institutions in Barbados.

Focusing on this year’s theme, It’s Your Future, Secure It!, I encourage employers to comply and pay contributions when deductions are made from salaries, along with your employer portion, to the NIS. I further encourage employers not to treat employees as sub-contractors simply to avoid paying the employers’ portion of national insurance.

It is not right. In addition, self-employed persons should play their part and pay NIS contributions on earnings as low as $21 a week or $91 a month.

Seasonal workers can prepay their contributions to cover periods when there is little or no income.

Many persons do not realize the benefit of social security until a need or crisis arises. I continue to appeal to self-employed persons to register with the NIS and start contributing towards your future.

Self-employed persons may be eligible for a range of NIS benefits which include old-age contributory, survivors, sickness, invalidity and maternity benefits. Self-employed persons can also register for the NIS Portal on the NIS website to track earnings and contributions.

You may recall that during the COVID-19 pandemic in 2020 self-employed persons who did not pay contributions were not included in the social protection which the NIS offers. However, the 1,481 self-employed persons who were uptodate with their NIS contributions were provided with the Self-employed Business Interruption Benefit, valued at $3,000 for April and May 2020.

This matter was also addressed when Inequalities and the World of Work was discussed at the 344th

The Honorable Colin Jordan Minister of Labour, Social Security and Third Sector.

Session of the Governing Body of the International Labour Organization which I attended in March 2022.

I fully support the efforts of the NIS to further raise awareness of the coverage provided by the scheme to self-employed persons. They need to be aware that social security is a benefit during and after their work lives and it also supports their families. Social protection is a right, and all workers should be sensitized to that entitlement.

I take this opportunity to inform you that my ministry has received the approval of Cabinet to amend the Labour Clauses (Public Contracts) Act. This proposed amendment will insist on minimum terms and conditions for workers, including participation in our social security scheme, in situations where private businesses are benefitting from contracts funded by taxpayers.

Finally, to all employers, employees and selfemployed persons, NIS is for you! Our future is secure when we contribute to the NIS.

Chairman’s Address

Fujitsu congratulates the National Insurance Scheme on it's 55th anniversary.

Over the years, it has made an invaluable contribution to the nation, through the provision of reliable social security to Barbados' greatest asset, it's people.

Commendations on the accomplishment of a significant milestone.

Secretary General’s Message

Current Board of Directors

Chairman of the National Insurance Board, Leslie Haynes, Q.C (seated) Other Board members: From right: Deputy Chairman, Rawdon Adams; Colin ‘Tony’ Walcott, J.P. (Barbados Employers’ Confederation), Senator Toni Moore, M.P., Dr. Karen Best, Permanent Secretary in the Ministry of Labour, Social Security and Third Sector; Chief Labour Officer, Claudette Hope-Greenidge; Stephen Austin (Barbados Hotel & Tourism Association) and Ian Carrington, Director of Finance & Economic Affairs.

Missing is Michael Edgehill

Current Management Team

Back Row: Junior Browne, Property Manager; Derek Lowe (Customer Relations), Quincy Yarde (Management Information Systems).

Front Row: Deputy Director, Frances Fontinelle-Walcott (centre) flanked by: From left: Lee-Ann Mayers-Franklyn (Internal Audit), Sophia Mings-Mascoll (Compliance, Severance and Registration), Katrina Bend, Marketing & Research Officer; Norma King-Brathwaite (Benefits) Missing is : Director, Kim Tudor, David Archer (Assistant Director Human Resources & Administration), Trevor Gibbs (Chief Legal Officer ), Mrs .Janice Estwick(Financial Controller)

The Directors, Managers, and Staff of the British Virgin Islands Social Security Board, sincerely congratulates National Insurance Scheme Barbados on its 55th anniversary.

This tremendous achievement is a testament to the growth and eminent stability of service to the people of Barbados.

Best wishes are extended for many more years of success, development, and goodwill.

NIS ACHIE

1967

Social security scheme set up in Barbados. Contributions paid by sticking stamps to contribution cards of insured persons.

1969 Sugar Workers’ Provident Fund commenced.

1974

Coverage for the self-employed extended to include sickness and maternity benefits.

1977

Age at which surviving spouse could qualify for survivors’ pension for life was reduced from 55 to 50.

1981 Rate of sickness benefit increased from 60% to 66 2/3% of insurable earnings.

Unemployment scheme introduced

1985

Age at which surviving children could receive survivors’ pension was increased from 16 to 25 once they were students.

Maternity Grant introduced.

1989

Unemployment benefit became payable to a person insured for at least 52 weeks prior to becoming unemployed.

1971

Employment injury benefit introduced.

Self-employed became insurable for long-term benefits

1975

Minimum pension introduced – $15 a week.

Spouses of insured persons receive funeral grants

1978

Stamp method replaced by direct payment. Contributions paid in cash to the National Insurance Office.

1982

Eligible persons begin to receive unemployment benefit.

National Insurance Department becomes responsible for Non-contributory Old Age pension instead of Welfare Department

1987 Contribution card system replaced with Contribution Certificates and Earnings Schedules, Benefits Evolve Date Benefit.

EVEMENTS

1990

Minimum pension increased over the years to $76 a week.

1991

Rate of unemployment benefit was changed to 60% for first 10 weeks and 40% for remaining 16 weeks.

2006 The pensionable age became 65 ½ years.

2010

The pensionable age became 66 years The Retraining Account for the retraining of unemployed persons who have contributed to the Unemployment Benefit Account was established..

2018

A Health Service Contribution at a rate of 2.5%, to which employers are required to contribute 1.5% of insurable earnings and 1.0% by employees and self-employed persons was added to the Contribution Rates and Levies payable. However, it is not applicable to those persons under the age of 16 or over the pensionable age of 67.

2020 TO 2022

The maximum insurable earnings ceiling is $1,126 for weekly paid workers and $4,880 for monthly paid workers. The funeral grant is $2,185, while the maternity grant is $1,260. Minimum old age contributory pension is $243 per week, while minimum non-contributory old age pension is $230 per week.

2003 The pension system was reformed providing a flexible retirement age, annual increases (indexation), and an increase in the pensionable age.

2007

The Catastrophe Fund Act, 2007 commenced. The purpose of the Fund is to provide financial aid to any low income earner who owns and occupies a chattel house where a) the value of the house does not exceed $150,000; b) the owner earns less than $25,000 annually and c) the house is damaged or destroyed by a catastrophe.

2014

The pensionable age became 66 ½ years.

The pensionable age became 67 years The minimum old age contributory pension was increased to $239 per week, while the minimum non-contributory old age pension was increased to $225 per week.

2020

The Business Interruption Benefit of $1,500 per month for April and May became available for insured selfemployed persons as a result of COVID-19.

The Severance Payments Act was amended temporarily as a consequence of the public health emergency due to COVID-19 in March 2020. The Severance Payments (Amendment) Act, 2020 commonly known as the “Sunset Legislation” determined the new terms and conditions for claiming severance due to layoffs during the period March 1 to May 31, 2020.

Departments of NIS The Accounts Section

(1) Collects all contributions payable under the National Insurance Act by employers and insured persons; all sums recovered under this Act or regulations as fines, fees, penalties or costs.

(2) Make payments for all claims for benefits, refunds of contributions paid in error; refunds to employers of insured persons for any overpayments.

(3) Prepare accounts of the Fund in such manner and at such times as the AuditorGeneral may direct for the Auditor-General to examine and certify.

REGISTRATION DEPARTMENT The Registration Department is responsible for the processing of new applications, the update and maintenance of documentation and address information for Individuals, Employers and Selfemployed persons and the verification of records for benefit applications. This Section has six employees.

COLLECTIONS SECTION

The Collections Section represents the revenue of accounting and is therefore responsible for receiving all cash, cheque and debit/credit card payments. It is also responsible for processing direct deposits and allocating these payments to the respective Business Partner accounts in the relevant period. The Collections Section also comprises the Refunds Section where various refunds of overpaid contributions can be requested.

SEVERANCE SECTION

The Severance Section is responsible for servicing the Severance tribunals, processing applications for severance payment claims, advising persons on the systems and procedures of the severance application process, processing of rebates and the collection of monies owed to the Severance Fund. This section is staffed by approximately ten persons.

COMPLIANCE SECTION

The Compliance Section’s main tasks include monitoring the compliance of employers and self-employed persons to the NIS, investigating complaints relating to the non-remittance of contribution payments and schedules, monitoring arrears payment and issuing clearance certificates. The Section is staffed with twenty-two persons which comprises of fourteen Inspectors.

Customer Relations

The Customer Relations Section facilitates all points of contact across the National Insurance Office. Customers can access those points through the Contact Centre, visiting the Office, the submission of correspondence and via e-mail. The focus remains on the delivery of service and the customer’s experience. The Section has also been utilizing technology to ensure that customers can access the various services offered by the Department.

Unemployment Section The Unemployment Section facilitates those who have become unemployed. A team of persons processes the termination of services/lay-off certificates which are required to be submitted within one week of the date of termination. If the employer has not provided the employee with a termination of services/lay-off certificate, the employee should register with the Department to ensure that they receive the maximum benefit due to them. Claimants are also required to make declarations indicating their employment status. The Unemployment Section is located at the E. Humphrey Walcott Building at the corner of Collymore Rock and Culloden Road, St. Michael.

DID YOU KNOW?

Reverend Francis Godson, a Methodist minister, agitated for the introduction of a state pension for those who had grown old. Thanks to his efforts and the tremendous public feeling he aroused, legislative provisions were made in 1937 for the payment of an old age pension to persons who reached their 68th birthday.

As a sign of appreciation for his dedicated service to social insurance, in January 1997, the National Insurance Board named the road around the Frank Walcott Building the “Francis Godson” Drive.

DID YOU KNOW?

National Hero The Right Excellent Sir Frank Walcott was one of the early advocates for a comprehensive social security institution in Barbados. Sir Frank served on the “Working Committee” that was appointed to prepare an administrative plan for the island’s social security scheme.

He was a strong advocate for the Workmen’s Compensation Act and the Severance Payments Legislation, and served as a member of the National Insurance Board from 1967 until his resignation due to illness in 1991.

Frank Walcott Building, the home of the National Insurance Office at Culloden Road, St. Michael, was officially opened and named in Sir Frank’s honour in 1992.

DID YOU KNOW?

National Hero and Barbados’ first Prime Minister, The Right Excellent Errol Walton Barrow, introduced social security on June 5th, 1967. On that date, the Barbados National Insurance and Social Security Scheme was established under the provisions of the National Insurance and Social Security Act, Cap. 47 of the Laws of Barbados.

This was preceded by a feasibility study prepared by the International Labour Organisation in 1962.

DID YOU KNOW?

Following the establishment of the National Insurance Scheme in 1967, the Sugar Workers’ Provident Fund commenced in 1969, while an Employment injury benefit was introduced in 1971.

Other important social security developments in the early 1970s included the self-employed becoming insurable in 1971 for long-term benefits – invalidity, survivors’ and old age contributory and funeral grants; coverage for the self-employed being extended to include sickness and maternity benefits in 1974; and, in 1975, the introduction of a minimum pension of $15 a week.

I

Staff Awards

must admit that I was surprised to be nominated as Employee of The Year. How much more so was I surprised to also win it. With that being said, I’m extremely grateful to receive the award. It feels satisfying to know that my hard work has been noticed and appreciated.

At work, I always strive to maintain an attitude of patience, calmness and approachability when dealing with customers, either external or internal. I always want to conduct myself in a way which reflects well on myself, my family, and the organization as a whole.

I view the ability wwto represent NIS in this way as Employee of the Year as an honour.”

Justin Cumberbatch, Employee of the Year

Supervisor of the Year – Shelly-Ann Boyce of the Legal Unit

Unit / Team of the Year – Records Management CAROL HALL

The longest serving employee was John Bushelle of the Accounts Section

John Bushell - 45 years of service

DID YOU KNOW?

DID YOU KNOW?

DID YOU KNOW?

DID YOU KNOW?

On March 8, 2007, the National Insurance Scheme’s Catastrophe Fund Act, commenced. The purpose of the Fund is to provide financial aid to any low income earner who owns and occupies a chattel house where the value of the house does not exceed $150,000; the owner earns less than $25,000 annually and the house is damaged or destroyed by a catastrophe.

On becoming unemployed, you must apply for unemployment benefits within two weeks of the date of termination of your services. This must be done whether or not a Termination Certificate has been provided by your employer at the time of termination. Unemployment benefits are payable not earlier than two weeks prior to the date of the claim, so a late claim may result in loss of part or whole of the benefit.

You can apply for an NIS number when you reach the age of 16. Simply visit the Registration Section of the National Insurance Office and provide the relevant documents, such as a Barbados identification card or valid passport, and an original birth certificate.

Once you have been issued with your NIS number, it remains your number for life, even if you switch jobs or change employment status from employed to self-employed.

All employers – whether individuals, sole proprietors, partnerships, companies or other corporations – are required to register with the National Insurance Office in order to obtain a registration number.

That number is used as an identifier for National Insurance purposes. Once a number has been assigned, employers will not be required to register again.

However, if there is a change of business name or address, please notify the National Insurance Office immediately. In the case of a change in business name, you are required to present the certificate from the Registrar of the Corporate Affairs and Intellectual Property Office as evidence of the change.

NIS Building Jemmotts Lane, Bridgetown 1967 -1975

NIS Building at Fairchild Street 1975-1992

Unemployment Section of the NIS at Verona House, 1982-2004

Unemployment Section of the NIS at the E. Humphrey Walcott

Frank Walcott Building- Present Location

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LONG-TERM TYPE OF BENEFIT

PRESCRIBED TIME TO CLAIM BENEFIT

Survivor's Pension

1 year from date of death of insured person.

Death

The period of 3 months from the date on which, apart from satisfying the condition of making a claim the claimant became entitled to that claim.

Non-contributory old age pension

3 months prior to pensionable age (67 years)

Invalidity Pension

3 months before the date on which, apart from satisfying the condition of making a claim, the claimant becomes entitled to the benefit.

Disablement

The period of 3 months from the date on which, apart from satisfying the condition of making a claim the claimant became entitled to that claim.

Old age contributory pension

The period of 12 months from the date of entitlement to the benefit. However, it is recommended that you application should be submitted 3 months prior to pensionable age

GRANTS TYPE OF BENEFIT

PRESCRIBED TIME TO CLAIM BENEFIT

Maternity Grant

2 weeks from the date of receipt of expected confinement certificate.

Invalidity Grant

3 months before the date on which, apart from satisfying the condition of making a claim, the claimant becomes entitled to the grant.

Funeral Grant

6 months from the date of death of the deceased

Old Age Contributory Grant

Even though, application can be done within the period of 12 months from the date of entitlement to the benefit, it is recommended that an application should be submitted 3 months prior to pensionable age

Survivors’ Grant

12 months from date of death of insured person.

SEVERANCE TYPE OF BENEFIT

PRESCRIBED TIME TO CLAIM BENEFIT

Severance

Dismissal: 1 Year from date of termination Lay-off & / Short-time: After 13 consecutive weeks or 16 weeks within a 26-week period (weeks on & weeks off)

Happy Anniversary