Deputy Prime Minister Condor kicks off public discussion on reforming St. Kitts and Nevis Social Security
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| Deputy Prime Minister and Minister responsible for Social Security, Hon. Sam Condor |
BASSETERRE, ST. KITTS, NOVEMBER 27TH 2007 (CUOPM) – St. Kitts and Nevis’ Deputy Prime Minister Hon. Sam Condor says public discussions on reform of the Federation’s Social Security is aimed at achieving a solvent and permanently sustainable Social Security System.
“We however, would want to support reforms that would provide economic opportunity and increase the power/value of the individual, without increasing the contributions rate, as others have chosen to do,” he told a ceremony to launch public discussions by the Social Security Reform Committee.
“We have instead been reviewing options of increasing investment returns, controlling costs and ensuring that all possible contributors are on board,”
said Deputy Prime Minister Condor.
He pointed out that the St. Kitts and Nevis Social Security “is not in crisis” and disclosed that a recent Actuary Report found that the ‘Social Security finances were favourable during the period, with income exceeding projections and that pension increases granted in 2005, ensured that the real value of pensions is maintained.’
Minister Condor stated that the Actuary Report found that the ‘The St.
Christopher-Nevis Social Security Fund is one of the best funded systems in the Caribbean.’
The Minister who has responsibility for Social Security said the programme is “one of the greatest achievements of the Labour Party Government and one of its deepest commitments to the Nation.”
Starting as a National Provident Fund in 1968, it was upgraded into a Social Security Scheme in 1979 under the Labour Government of then Premier Sir Robert Llewellyn Bradshaw.
“For nigh on 30 years it has protected our elderly against abject poverty and has given assurance to our young, of a secure future. We must rededicate ourselves to the task of ensuring that it continues to do this extremely important work for decades to come. Hence the frequent Actuary Reviews,” he said. ~~Adz:Right~~
“Some may well ask, ‘why fix the system, why not wait until there is a real problem?’ The problem with that notion is that the longer you wait- the more difficult will be the solution to any such problem,” Condor suggested.
He reiterated that in St. Kitts and Nevis as is the case with many Social Security Programmes all over the world, the retirement age is well below life expectancy; therefore it requires more cash to sustain the system.
“It is important to note that our retirement age is 62, while life expectancy is 71, and increasing with modern medicines and healthier life-styles,” Deputy Prime Minister Condor pointed out, adding:
“Most systems world-wide are undergoing reforms and applying different measures. At the end of the day, we aim to achieve a solvent and permanently sustainable Social Security System.”
He said: “Social Security as is, cannot, according to the experts, be sustained beyond 2055 - therefore reform is necessary- the question is when and how. The longer reform is delayed the more unfair reform will be to future generations; and the more difficult for individuals to plan their retirement.”
The Deputy Prime Minister noted also that expert economists also argue that an effective and fair system can very well cause National Savings to increase; and that increased National Savings is an implication of a fair distribution of Social Security’s net-benefit, across generations.
