Moderator: 3ne2nr Mods
1% don't care how you waste ur money as long as it goes into their pockets.pugboy wrote:I followed this advice ever since I started working,
I used to read some articles from EY guy Nigel Romano in the business guardian in 1996.
His advice was exactly this.
Unfortunately the avg person will quicker part with money to buy drinks on a friday and carnival parties and costume.
The avg working class person easily throws a staggering amount of money on alcohol and carnival every year.88sins wrote:I tel people similar, but not necessarily to invest in a pension plan. Even an interest generating bank account will do
I tell people, when you get paid, no matter if it's daily, weekly, fortnightly, monthly, quarterly, or in cash or cash equivalent or dasheen or whatever. Put aside a minimum of 5% of your income and leave it alone. That's a measly $5 on every $100 you make. I believe anybody can do that, and to show what it can amount to.
A person making $4k/m, putting aside that 5%, from age 18, and retiring at 65, will have a cool $112k nest egg, and that's totally independent of your NIS or private pension contributions, and will be a lot more once you working for a better salary or increase the percentage you put aside over the years or add to it in any other way.
It's sad, that for all the free education that we have in this country, that the school system does not teach our youth anything about personal money management and financial responsibility. They leave that for parents to do, many of whom are at best clueless or at worst don't give a damn and happy to spend every cent and look for handouts when they get old and have nothing.
agent007 wrote:Old age grant formerly known as old age pension is 3500. 500 more than the nis 3000.
Since we no longer could afford a free for all society, we should stop the grant and let the gortt pour those funds into the nis system and buy us more time while they fix their issues.
On one hand, people benefiting from tax payers whilst they contributed little to nothing and then we have contributors who are being threatened to pay up some more.
I dunno bout alluh, but why non contributors must receive more than contributors? What makes their lives more important than mine and the hundreds of thousands just like me?
hover11 wrote:Is this why the government of the day saved clico due to the ramifications that would have occurred ?Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
agent007 wrote:Old age grant formerly known as old age pension is 3500. 500 more than the nis 3000.
Since we no longer could afford a free for all society, we should stop the grant and let the gortt pour those funds into the nis system and buy us more time while they fix their issues.
On one hand, people benefiting from tax payers whilst they contributed little to nothing and then we have contributors who are being threatened to pay up some more.
I dunno bout alluh, but why non contributors must receive more than contributors? What makes their lives more important than mine and the hundreds of thousands just like me?
pugboy wrote:in some part yes due to the many associated companies which would be affected.
but it was badly handled,
two cl men came knocking on central bank for help and were given it
the next day they paid themselves bonuses.........
and one used to be a pnm party treasurer........hover11 wrote:Is this why the government of the day saved clico due to the ramifications that would have occurred ?Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
Redman wrote:CLICO showed many of skeletons in the closet.
We just refused to deal with them properly.
So we still dealing with it, instead of it being done and a positive experience.
From Karen, to EW to the board of CIB...etc.
To the banking lobby that made sure there is nothing to compete with banks for deposits.pugboy wrote:in some part yes due to the many associated companies which would be affected.
but it was badly handled,
two cl men came knocking on central bank for help and were given it
the next day they paid themselves bonuses.........
and one used to be a pnm party treasurer........hover11 wrote:Is this why the government of the day saved clico due to the ramifications that would have occurred ?Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
pugboy wrote:the best was Gita and the uncashed check
gives any idea of the kind of money them was accustomed taking as pocket change and forgetting aboutRedman wrote:CLICO showed many of skeletons in the closet.
We just refused to deal with them properly.
So we still dealing with it, instead of it being done and a positive experience.
From Karen, to EW to the board of CIB...etc.
To the banking lobby that made sure there is nothing to compete with banks for deposits.pugboy wrote:in some part yes due to the many associated companies which would be affected.
but it was badly handled,
two cl men came knocking on central bank for help and were given it
the next day they paid themselves bonuses.........
and one used to be a pnm party treasurer........hover11 wrote:Is this why the government of the day saved clico due to the ramifications that would have occurred ?Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
NIB records $1 billion deficit
Asha Javeed
Feb 13, 2022 Updated 1 hr ago
The gap between what the NIB collects and what it pays out is widening.The National Insurance Board (NIB) withdrew over $1 billion from its investments to pay benefits to citizens in 2021.
It’s the highest amount the NIB has ever had to withdraw to meet its expenses.
In its 2021 report, which was laid in Parliament last Friday, the NIB said the recessive impact of the Covid-19 pandemic on the economy, as well as the absence of parametric changes, “amplified” the deficit between what it earned in contributions and what it spent in benefit expenditure.
“As suh, the performance of the NIB’s investment portfolio was moderated by withdrawals of $1.065 billion from the investments cash account to finance the shortfalls. In response, the NIB focused on income maximisation and mitigating the liquidity realities of the organisation as the NIS continues to be increasingly dependent on the NIB’s investment portfolio,” said the report by the company’s executive director, Niala Persad-Poliah.
Sinc 2016, the NIB has had to dip into its investments to finance its benefits:
1. In 2016, that sum was $261.54 million
2. In 2017, it declined to $140.26 million
3. In 2018 it was $226.16 million
4. In 2019, it increased to $664.65 million
5. In 2020, it was $916 million
6. In 2021, it’s $1.065 billion.
For 2021, benefit expenditure amounted to $5.534 billion and represented an increase of 3.43 per cent over 2020.
The sum for benefits is exclusive of administrative expenses of over $200 million for each year.
For 2020, administrative expenses were $251.17 million, but declined to $231.15 million in 2021, a decrease of eight per cent.
The difference between income and expenditure has been a thorny point for the NIB and it has advocated for changes, the main one being increasing the retirement age from 60 to 65 over time.
The pandemic has exacerbated the issue for the NIB.In 2021, the number of contributors in the National Insurance System (NIS) was 446,116—an increase by 41,919 contributors, or 10.4 per cent, from 404,197 in 2020. Contributors numbered 420,638 in 2019.
However, there’s been a steady increase in beneficiaries—it moved from 202,800 in 2019 to 204,613 in 2020 to 206,569 in 2021.
For the second year, contribution income declined.
The decline in contributions for 2021 was 3.74 per cent. It moved from $4.685 billion in 2020 to $4.510 billion in 2021.
Despite this, the NIB’s 2021 performance was better than it projected in its 2020 report, based on its contributions and investments.
In 2020, the NIB said it expected a ten-per cent decline in contributions for the fiscal year 2021, and as such it may soon be forced to liquidate assets to generate income as it now has to pay out more than it is earning from contributions.
“Of continuing great concern over the last six to seven years is the increase in the disparity between contribution income and benefit expenditure. This growing shortfall has been supplemented by investment income. If the status quo is maintained, it is projected that as early as the next two to four years, assets will have to be liquidated to ensure that benefits can continue to be paid in full,” Persad-Poliah said in its 2020 report.
Beneficiaries
The NIB’s largest expenditure is its pension plan.
Persad-Poliah’s report noted that for 2021, there were 181,147 pension beneficiaries, an increase of 2.11 per cent over the 177,410 recorded in 2020.
The retirement pension accounted for 2021 totalled $4.548 billion or 86.52 per cent of long-term benefit expenditure.
To this end, the suite of long-term benefits (include retirement pension, retirement grant, survivors’ benefit and invalidity benefits) totalled $5.257 billion or 94.99 per cent of total benefit expenditure in 2021, a marginal increase from the 94.7 per cent relative share in total benefit expenditure recorded 2020.
Conversely, short-term benefits (include sickness benefit, maternity benefit, special maternity benefit and funeral grant) totalled $200.81 million or 3.63 per cent of benefit expenditure. This represents a decrease of 1.55 per cent from the $203.98 million in 2020.
The employment injury benefits (include disablement pension, disablement grant, death benefit, medical expenses and injury allowance) totalled $76.25 million or 0.38 per cent of benefit expenditure. This represents a decrease of $3.43 million or 4.30 per cent from the $79.68 million in 2020.
Employers declining
The 2021 report noted that 993 employers (businesses) that contributed to the National Insurance System (NIS) stopped.
“The active employer population has decreased slightly compared to the last financial year, falling from 20,274 in FY2020 to 19,281 as at the end of FY2021,” said Persad-Poliah.
In the 2020 report, employers declined by 2.12 per cent from 20,714 in 2019 to 20,274.
In addition, the number of employers registering at the NIBTT for 2021 was 1,726, a decrease of 1.48 per cent from 2020.
It added 11,197 people to its database for 2021.
So with employers and contributions on the decline, how will the NIBTT be able to maintain its projected expenditures?
‘It cannot be overstated that the demographic realities of an ageing population in Trinidad and Tobago are producing a declining pool of labour and hence contributors to the NIS whilst simultaneously increasing the number of persons of pensionable age. This situation is fundamentally unsustainable for the NIS, and we look forward to more information and active engagement with our key stakeholders regarding reform of the NIS in the near future.
“Given the uncertainties brought about by the pandemic and the threats to our medium-term objectives, it was recognised that review and changes to our approach, as encapsulated in the Strategic Plan: 2020-2024, would be required. As a result, the NIBTT engaged in a ‘strategy refresh’ exercise to address the known and anticipated elements of the changing environment, especially as it relates to the Covid-19 pandemic. The outcome of the exercise was the inclusion of new strategic initiatives and implementation timelines based on the risks facing the NIBTT at this time. A clear path to strengthen our organisational resilience, plan for possible turbulent periods in the short to medium term and build a bridge to organisational success over the commensurate period has been developed and is detailed in the updated strategic plan,” said Persad-Poliah.
NIB’s investment portfolio
Persad-Poliah noted that NIBTT’s investments did well in 2021.
Seventy-eight per cent of the NIB’s investments are in T&T while 22 per cent are in North America.
1. Total funds increased by 7.43 per cent from $28.66 billion as at June 30, 2020, to $30.78 billion as at June 30, 2021.
2. Total assets increased by 7.33 per cent from $28.94 billion as at June 30, 2020, to $31.05 billion as at June 30, 2021.
“Due to some measure of rebounding in international capital markets as the more advanced economies adapted to the realities of trade with the pandemic restrictions in place, investment returns were quite good over the period, with an overall investment portfolio return of 14.18 per cent. This resulted in an increase in the National Insurance Fund by 7.43 per cent or $2.13 billion to $30.78 billion,” she noted in her report.
She noted that the NIBTT’s investment portfolio market value as at June 30, 2021, was $29.83 billion, reflecting a 7.57 per cent or $2.1 billion increase over the fund size as at June 30, 2020.
“The increase in the portfolio’s market value was attributable to approximately $2.1 billion in unrealised gains, with equity and fixed income investments contributing gains of $1.96 billion and $133 million, respectively. Despite the subdued domestic and international interest rate environments, increased global market uncertainties due to heightened geopolitical risks, and the most recent impact of the Covid-19 pandemic, the strong rally in US equities markets continued to be the key growth driver within the portfolio. The impressive performance of the US stock market in conjunction with NIBTT’s strategic rebalancing of investment positions, both locally and internationally, contributed positively to the overall performance of the portfolio,” she said.
The NIB’s portfolio includes real estate, mutual funds, cash and cash equivalents, mortgages, with fixed income (28.36 per cent) and equity (57.15 per cent) representing the largest portion of its portfolio.
The NIB’s equity portfolio, which accounts for the largest asset class of the total fund, currently stands at $17.05 billion, an increase of approximately 16.70 per cent or $2.44 billion when compared to 2020.
hover11 wrote:Keep kicking that can down the road....
Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
Dizz,Dizzy28 wrote:Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
At the top tier (Monthly salary of 13,600 and greater) you asking persons at the present rates to pay 7,200 a year for no benefits? Also are their companies also expected to continue the 2/3rd employer side?
How much is property tax expected to be and we know the level of buy in to that?
Government would need to offer a really good trade-of such as maybe double the Income Tax Allowance for your NIS contributions or something and even tat may not be good enough.
Dizzy28 wrote:Redman wrote:pugboy wrote:i know a lot of ppl who would willingly opt out
but this means less contributions to the fund.
To be frank, I would opt out but still contribute.
Someone who has done well, and has things in place, while contributing at the highest level will probably live to a ripe age, and also pull out more.
Make the contribution, cuz if NIB collapses, what's the value of every other part of the asset base?
Real estate will take a hit
The currency will take a hit
Quality of life across the board will take a hit
We all in the same boat
At the top tier (Monthly salary of 13,600 and greater) you asking persons at the present rates to pay 7,200 a year for no benefits? Also are their companies also expected to continue the 2/3rd employer side?
How much is property tax expected to be and we know the level of buy in to that?
Government would need to offer a really good trade-of such as maybe double the Income Tax Allowance for your NIS contributions or something and even tat may not be good enough.
Impsbert and company will spin some kinda fairytale, and the sheep will eat it up like bamboo grass.Mark my wordsRedman wrote:only to the dotish,timelapse.
Only to the dotish.
All this and they say they can't pay people their pension.hover11 wrote:Impsbert way ahead....lots of smoke and mirrors
hover11 wrote:Seeing this all over online then seeing my insurance agent sent me this, I gotta laugh yes:
The above notice is an official notice from the National Insurance Board of Trinidad and Tobago. This advisory is actually a critical one as they have revealed that they are in a deficit to support payments for all persons legible. This brings me to the point of further endorsing with you the critical importance and need of having one’s own retirement plan as we simply cannot live off of a pension from NIB and worse even we cannot predict the future of its security. Therefore I am sending this advisory to educate, inspire and encourage you to explore with me options regarding your retirement planning if you have not already done same. Feel free to msg for a personal meeting if interested.
hover11 wrote:Remember when they said Kamla wanted to touch NIB money lol, they there now and destroying it from the inside out
Come out and show them how to do it.daring dragoon wrote:boi i find kams and the unc bunch is a set ah kants. the like they dont know how to deal with the PNM and the PNm lies. they does roll over an play dead like a manicoo. no backbone yes.
Let's be real it is , the government's ponzi scheme.....the ppl at the top (pensioners ) are sustained by the ppl on the bottom, working class, if the ppl on the bottom stop paying the entire pyramid falls apart.Now the problem is, the employers not paying no problem, however, the biggest delinquent employer is the government(ministries), who owing years upon year of penalty and interest. What sense does it make, money moving from one pocket to a next.agent007 wrote:Great, now IML people calling NIB a Ponzi scheme. I was left speechless on that one.
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