S.S.B. Actuary: No Increased SSB Contributions Necessary, For Now

The Social Security Board held its annual S.S.B. Connect today to report to its stakeholders on issues such as contributions and investments. And while global inflation is driving the need for higher prices and increases across the board, people who contribute to the scheme will be happy to learn that, for now, there should not be any increases in what they currently pay in to S.S.B. Today, the board’s actuary, Hernando Perez Montas, told the media that based on current investments and the rate of inflation, S.S.B. should not require any new increases until just before the end of this decade.

Hernando Perez Montas

Hernando Perez Montas, Actuary, S.S.B.

“My projections indicate that if the investment performance is adequate, the rest of this decade, there won’t be any need to increase the rate of contribution until 2028 29. So until 2028 29, the present financing basis will be enough. There won’t be any need to increase contribution rate. Now, the ceiling could increase before that, allowing you to get better pension. The ceiling could increase, but the rate of contribution might remain stable until that date. Now, the problem might be that inflation is causing a big problem all over the world, even in Belize. Inflation last year in Belize was very high. And this year also, although the statistical figures, they say, they are very low. We are talking about the basic package of benefits, you know. Rice, beans, and some things, but the cost of living, the population is saying that they are suffering from the pocket. So that inflation is higher than the statistical official figures. So that might cause pressure on increasing the level of contribution sooner than we expect. But the key, the key issue concerning the sustainability of the social security scheme is to get a good, adequate return on the investment portfolio. And that’s a big challenge, both of the investment committee and of the board. Right now, because of the new law, they are getting a big influx in contributions. They are accumulating funds. And these funds should be invested quite soon to make it, the actuarial projections adequate. Also, the ceiling on contributions was effective April 1st, 520 dollars per year. That will allow insured persons to retire, instead of 60% of 320, with 60% of 520 from next year. So this is a big improvement in the level of benefit from Social Security.”