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Chairman’s Review
I feel privileged that I was appointed as Chair of
the National Insurance Board (NIB) for a five year
period at the beginning of 2012/13. We have enjoyed
an interesting and challenging year addressing several
key issues. Notwithstanding the challenges, I and my colleagues
remain committed ensuring that the National Insurance Board becomes a stronger and more viable institution, by the end of our term. Over the year the Directors have worked tirelessly to advance the interests of the organization and to strengthen and deepen the institution.
Due to continued domestic and global recessions, contributions to the institution continue to be slightly lower, but the organization has responded to this pressure through concerted efforts to reduce operating costs and working diligently to improve efficiency of the organization. Our administrative costs were reduced from 1.8% of benefits and contributions to 1.6% of benefits and contributions and we expect further reductions going forward. In addition, the Board has undertaken an intensive effort to refine the Investment Strategy and to rebalance the monies within the National Insurance Fund. This has resulted
in higher returns to the fund and helped to offset lower contributions.
INVESTMENT IN INDIGENOUS DOMESTIC BANK
The current NIB Directors inherited the investment losses arising out of the NIB investment and deposits held in the TCI Bank, the Country’s first indigenous domestic banking institution. Management and the Directors worked throughout the year to regain funds from the institution, which was placed into receivership in 2010. Following legal actions and intense negotiations, the NIB was able to negotiate an agreement with the receivers to obtain the return of the $5.5 million debenture with interest and to obtain 20% of its deposit monies. To date the NIB has been able to recover $ 3.5 million of the $17 million it deposited into the TCI Bank. Further efforts are ongoing to collect the remainder of the funds.
2010 ACTUARIAL REVIEW
The Sixth Triennial Actuarial Review of the National Insurance Fund was commissioned and conducted in 2011/12 confirming that the financial condition of the National Insurance Fund remains strong and the NIB is able meet its obligations to contributors within the foreseeable future. Arising out of the Actuarial Review there were a series of recommendations to expand benefits, reduce administrative costs and raise contributions. During 2012/13, the Governor approved the implementation of a range of benefit increases and administrative changes proposed by the Board, but deferred for another year recommendations for increases in contributions. In total nineteen (19) of the twenty-five (25) recommendations were implemented.
MEDICAL CARE COSTS
During the fiscal year, the Board continued to deal with the ongoing dispute between the Turks and Caicos
2013 & 2014 ANNUAL REPORT | 3