Why S.S.B. Needs Your Money to Pay for Pension Increase

Pensioners have been granted a five-percent increase in their monies offered by the Social Security Board for those earning more than three hundred and twenty dollars per week, to match the rising cost of living.  But for a second five-percent increase to be granted, it may mean an increase in contributions across the board.  The Board hosted countrywide public consultations to discuss their plans and today C.E.O. Doctor Colin Young indicated that they will be talking to the trade unions and business community next.  The pain of any increase now, he told us, accrues to benefits in the future.

On the Phone: Dr. Colin Young, C.E.O., Social Security Board

“The idea generally, if you talk to pensioners, they’re saying that the pension they are getting from Social Security is not enough to survive or to live [on]; it’s a small amount. So the idea is there is a five percent increase that has already been factored in; the Board has considered another five percent, but for that five percent to be approved, we need to get more revenues into Social Security and that is the issue of the wage band increase.”

Reporter

“To be simple – to be overly simple, that means the rest of the working population are being asked to pay for this increase to pensioners. As I said, that’s being simple.”

On the Phone: Dr. Colin Young

“No, no, no; that’s perhaps being too simple. What I’m saying – remember, the idea is that it’s not just to pensioners, but to all of us who are contributing when we become pensionable, that are over that limit, that would benefit from this. So the idea is that if you increase the contributions into Social Security, our revenues would be higher, and because our revenues are higher we are able to increase pensions by five percent. Now if you are already on pensions, you benefit; but obviously if you are not on pension now but you will be on pension in a few years, you will have that; so it is contributions to the Fund and when you become pensionable, you benefit from that.”

The Board also hopes to begin an increased public awareness campaign on the types of benefits available and how to move to access them.  After consultations, there will be recommendations to change the Social Security Act which will likely take place in the first quarter of 2018.