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Islands Government (TCIG) and the Board with respect to the medical care costs for employment injury. In an effort to resolve the situation the Actuaries for the Board and the National Health Insurance Board were commissioned to produce a joint report on the proposed medical care costs. The two Actuaries produced a report that was presented to the Board for consideration. Further debate occurred and the Board agreed to commission an independent actuary to review the work of the initial consultants. Based on the findings of the independent consultant, the Board agreed to pay $9.15 million to the TCIG for medical care costs covering the period from inception until March 31, 2011. As well, the Board later agreed to pay $3.5 million in interest payments as part of a larger omnibus agreement with the TCIG. This decision of the Board to make the payment to the TCIG allowed the parties to move forward to strengthen the National Insurance Fund. The Board had also paid the NHIB the sum of $612,000 in 2011/12 for medical care costs for that fiscal year and hired the NIB Actuary to conduct an assessment of medical care costs as required under the NHIB ordinance. Work on that was ongoing at the end of the fiscal year.
INVESTMENT STRATEGY
In order to ensure that the National Insurance Fund remains relevant in meeting the organisation’s stated aims and objectives, the Directors commissioned the Investment Committee to undertake a comprehensive review of the Investment Strategy of the National Insurance Fund and to engage in a process to rebalance the Fund. The Investment Committee met on more than 25 occasions over the year in order to review all aspects of the investment strategy and to determine the best investments moving forward.
During the year, the Board agreed to expand the number of investment fund managers, to broaden the investment base and to move a significant portion of its cash reserves to equity instruments. As well, the Board put in place new procedures for oversight of the investment managers and conducted a series of training sessions for Investment Committee members and other Board and staff personnel. Finally, efforts were put in motion during the year to rationalize the number of “consulting” firms and a tendering process was initiated. The Board was very active during the year in rebalancing the funds and made significant progress. Additional work will need to be made in 2013/14 and beyond, but significant progress has been achieved. Investment results have also been increased due to these efforts and helped to offset slightly lower contributors revenues for the year.
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CONCLUSION
In conclusion, the Board continues to face challenges as it works to ensure that the country retains a strong and secure social safety net and that those persons who contribute to the National Insurance Fund will be assured that they will reap the benefits of their investments. The Board remains deeply committed to working with the NIB’s Management team and the Minister of Finance, with responsibility for the National Insurance Board, to ensure that the Organization continues to meet and surpass the expectations of its stakeholders, while at the same time ensuring strict
compliance with the relevant laws and regulations that govern its existence.
The Board registers its profound gratitude and best wishes to Mr. Robert Brace and Mr. Kevin Higgins whose term of office with the Board came to an end during this fiscal year. I wish to thank them for their tireless efforts and extend the very best
wishes of the management, staff and Board to them in their future endeavours.
Finally, I wish to register my sincere thanks to my colleagues, the management and staff of the National Insurance Board.
4 | The National Insurance Board of The Turks and Caicos Islands