Despite a contracting economy between 2010 and 2012, the Social Security Board managed to bring in “significant surpluses” during the period, thanks to good return on investments and collecting more in contributions than it paid out, according to a September actuarial review.
The review, conducted by Horizonow Actuarial and Financial Consultants, is the 11th since the SSB was founded in 1980. The review sought to make sure that the programme is being adequately funded, and will continue to be for the foreseeable future.
According to the report on the review, which was tabled in the House of Assembly in December, the amount paid out in benefits will exceed the amount collected in contributions for the first time between 2017 and 2019.
But, the report explains, this wouldn’t be a catastrophe in the short term. According to the report’s projections, the SSB’s total expenditure shouldn’t exceed its total income until 2028, and the fund shouldn’t be depleted until 2043.
“These results indicate that the fund, while not financially sustainable over the long-term at current benefit provisions and contribution rate, remains adequately funded for the short and medium terms,” the report states.
To make sure that SSB stays solvent, contribution rates will have to increase at some point, but now isn’t the time, according to the report.
See the Jan. 9, 2014 edition for full coverage.
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