Page 46 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
3. Significant accounting policies, continued
(f) Revenue and expense recognition, continued
(iv) Benefits, general and administrative expenses, continued
As disclosed in notes 3(k) and 27, NIB recognises the amount of its liabilities for future retirement benefits in the notes to the financial statements as per IAS 26. An actuarial valuation is performed every 3 years. The latest valuation was performed as at March 31, 2010. No comparative valuation is currently available as no valuation was performed as part of the actuarial review conducted at March 31, 2007. Certain results of the actuarial valuation are disclosed further in note 27.
Basis of apportionment of income and expense
 The statutory rates of total contributions, which are applied on an employed and self-employed person’s earnings and stipulated under sections 4, 14 and 19 of the TCI National Insurance (Contributions) Regulations (the Contributions Regulations), are as follows: Civil Servants 6.85%; Private Sector (general) 8.00%; Private Sector (under section 4(3) of the Contributions Regulations) 2.50%; Self Employed 6.80%; and Voluntary 5.50%.
Section 4(3) of the Contributions Regulations relates to the employment of a temporary resident employed person on which contributions are payable at a rate of 2.5% and not the standard 8% for all other private sector workers.
Section 13(1) of the Regulations provides that the aforementioned total contributions and surcharges (note 3(f)(i)) shall be allocated among the Benefit Branches as follows:
Contributions from:
Civil Servants
Private Sector (general) Private Sector (under section
4(3) of the Contributions
Regulations) Self Employed Voluntary
Long-T erm Benefit Branch
5.50 / 6.85 5.50 / 8.00
– 5.50 / 6.80 5.50 / 5.50
Short-T erm Benefit Branch
0.15 / 6.85 1.30 / 8.00
2.50 / 2.50 1.30 / 6.80 –
Employment Injury Benefit Branch
1.20 / 6.85 1.20 / 8.00
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42 | The National Insurance Board of The Turks and Caicos Islands
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