Looking back; moving forward (Part II)

By Elvin Bailey

Elvin Bailey

Many of the listeners were skeptical as it was a new experience in St. Kitts and Nevis. However, on August 3rd, 1978 when the Inspectors and other staff distributed leaflets and placed posters in strategic locations advising persons who should fall sick to make their claims, they dispelled some of the doubts. Furthermore, newspapers also conveyed the good news via a notice from the organisation. Sickness benefit was offered at 50% of wages. On August 15th, 1978, A. Martin submitted the first claim with D. Warner to follow on that same day. By August 31st, 1978, 24 sickness claims had been made. V. Lawrence was the first female to claim sickness on 16th August, 1978.

The first maternity benefit and maternity grant was paid to J. Barrate in November of 1978.

Funeral Grant of $200 was also offered to anyone who produced the receipts after undertaking the funeral expenses of an insured person. The first Funeral Grant claim was not made until 27th September, 1978 when C. Williams submitted the first claim for funeral grant. The table provides more data at a glance.

Long term benefits, particularly pensions, require a greater number of contribution weeks. Therefore, in an effort to accelerate the qualifying period, the Benefit Regulations made two provisions. The first one was to offer voluntary options to transfer up to three years’ contribution from the NPF at age 60. This would be applied as three years’ contribution under Social Security. Unused transfers would be returned if they were not required at age 62. The second was the allocation of age credits (up to 350) to persons over age 52 at the date of the establishment of Social Security on 1 February 1978. With these provisions, the 500 contributions for pension could be attained after three years of the Social Security’s existence. Therefore, in 1981 the first payment of age pension was made to H. Bart, now deceased. In 1983, the first invalidity pension was paid to S. Benjamin and survivors children and widow’s pension paid to M. Greene and R. Callendar respectively.

Age grants which require a minimum of 50 and a maximum of 499 contributions were paid in 1979.  Nine (9) benefits of this type were paid in 1979 in the total amount of $2,595.  J. Howell made the first claim on 8th June, 1979.

In the past two decades, enhancements were made to the long-term benefits. Increases were applied to pensions, invariably subsequent to each actuarial review. Successive increases have led to an increase over the years in minimum pension, from the level of $75.83 to $400 per month.  Enhancements include the setting of a minimum amount for the payment of survivors’ pension and payment of children’s pension to age 18 for children who are studying full time.  Since 1996, all surviving children were also paid immediately after death dispensing with the clause specifying maximum number of children being paid simultaneously.  The other adjustments include the change in 2006, to dispense with the restriction to pay two benefits simultaneously. In an unprecedented move to ensure equity, a new Benefit Regulation Amendment  was approved to allow persons who qualify for age pension and survivor widow/widower pension simultaneously, to be paid the full age pension in addition to a minimum of one half of the survivors pension. The relevant persons who were in receipt of pensions had their cases revised and the payment made from 2006. 

It is noteworthy that as the age of Social Security advances, it comes closer to the maximum benefit payment of 60%. By the end of 2008, it stood at 57%.

Before the Employment Injury (EI) Act came into effect, the provisions of the St. Kitts and Nevis Workmen’s Compensation Act were evaluated. In addition, the conditions outlined in similar legislation in various nations were examined to propose the most reasonable benefit provisions. The draft was submitted to the Legal Department for the preparation of the legislation. Pending the completion of the EI Regulations, a set of Guidelines was prepared for use by the staff as the program was expeditiously implemented when the Workmen’s Compensation Act 1955 (Cap 354) was repealed with effect from December 16, 1985.  

Having suffered injury or disease arising out of or in the course of employment, an insured person can qualify, if an injury is suffered on the first day of employment. The rate for payment of injury benefits was set at 70% of wages in 1986 and increased in 1993 to 75% of wages. The benefits under this branch of operations include injury benefits, reasonable medical care and travel expenses, constant care allowance, funeral grant and death benefit pension to widows, widowers, parents and children.

In the first year, 284 persons benefited. The first injury claim was made by L. Gumbs on 20th January 1986. The first death benefit widow and children pensions were also paid in 1986 to the surviving wife and children of L. Archibald. The first Funeral Grant was also paid on his death.  G. McDowell claimed and received the first Disablement benefit. 

The Act and the Benefit Regulations also made provision for assisting persons who made contributions, for those who would have benefited from NPF but were also in need, as well as to other old and needy persons in the society. It provided that persons over 62 who were in need and ordinarily resident in the Federation may receive assistance. In 1988, it extended the assistance to persons who were permanently incapable of employment for medical reasons and had no other regular source of income.

Payment of aged non-contributory pension commenced in the month of December 1978, when 560 assistance pensions were paid in the amount of $15,680. At the end of 1979, the second year of operations the amount of $597,884 was paid and the number of recipients stood at 1,777. At the end of 2008, 641 persons were being paid Assistance Pensions (the payment was increased to EC$250.00 per month in January 2009). By the end of December 2008, approximately EC$337million had been paid in all benefits, including EC$34million in 2008 alone.

The funds for the payment of this for some time came from the Sugar Workers Pension Fund which was established in 1951. Government Departments and Public Corporations (National Sugar Corporation and St. Kitts Sugar Manufacturing Corporation who were paying pensions of less than the amount paid by Social Security were requested to pay the amount to Social Security who would pay the person a higher pension.  Initially, the rate was set at $7 per week and increased to $10 in 1981. By December 1988 the rate had increased to $20 per week. The pension currently stands at $105 per half month. The payment of assistance has been made from the long-term benefit branch since the depletion of the Sugar Workers Pension Fund in 1986.
(to be continued next week)

(This article was written by Sephlin Lawrence, Director, and first published in the 30th Anniversary Commemorative Magazine. It was adapted by Elvin Bailey)