Social Security explains proposed changes
It’s had its share of bad publicity, but that has not stopped the Social Security Board from trying to get its message out to the public. This week SSB officials are touring the country to present proposals for major change in what Social Security gives and takes.
Jacqueline Woods
The proposals are all part of the Social Security Reform Scheme that ultimately promises to increase the level of benefits for working Belizeans. The proposals are based on public suggestions and actuarial recommendations presented in a nationwide Symposium.
Narda Garcia, General Manager, SSB
“The people today have come out and have basically endorsed the principle that we need to do something. We need to increase the insurable earnings and that we need to increase the benefits.”
But, an increase in benefits means that some people will have to pay more in Social Security contributions. SSB’s General Manager, Narda Garcia says once you raise the level of insurable earnings, you will automatically have an increase in contributions.
Narda Garcia
“Our proposal is that above the $130 that we cover today, where the employer pays 6% and the employee pays 1%, that remains up to the ceiling of 130. Above that, the employer pays 3.5% and the employee pays 3.5%.”
Garcia says employees who will pay more, must remember that while their contributions have been increased so have their benefits. There is also good news for expectant mothers. The maternity Grant ids proposed to increase from $100 to $300 per child.
Jacqueline Woods
“Let’s look at the retirement pension, has that increased significantly?”
Narda Garcia
“Remember that for retirement pensions, which is a long term benefit, we calculate that 60% of your insurable earnings over a period of 35 years and there is a complicated formula there on how to work it, but presently the maximum pension you will be able to get contributing from 1981 to date at the maximum insurable earnings will be about $60 a week. We are proposing that with the increase of insurable earnings and the increase in contributions that goes to $192 a week.”
The Invalidity Grant has also been doubled from $400 to $800 and the sickness and injury benefits have been extended to include Sundays. This particular benefit was a popular recommendation at the symposiums.
Narda Garcia
“Asking Social Security to cover accidents home-work-home. And we have recommended and I think that is something that has been well accepted, not only from the teachers as we know work patterns have changed and a lot of people commute to work in one form or the other, public and private transportation and that will be covered. We are also including Sundays and that was a request that came from the services industry, tourism and information technology. In the north, the cane cutters have always worked Sundays and have never been covered, we are covering Sundays now.”
Garcia says, the proposals have been presented to the government. However, the government has asked SSB to share the proposed reform package with the public in an effort to see if the proposals are viewed favorably. Garcia says she cannot say when the proposals will be implemented as it is the government who will make that decision.
On Friday, meetings will be held in Orange Walk and Corozal.
