National Insurance Scheme Reforms in the Caribbean

By Koffie Ben Nassar, Joel Chiedu Okwuokei, Mike Li, Timothy Robinson, Saji Thomas

October 17, 2016

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Koffie Ben Nassar, Joel Chiedu Okwuokei, Mike Li, Timothy Robinson, and Saji Thomas. National Insurance Scheme Reforms in the Caribbean, (USA: International Monetary Fund, 2016) accessed September 20, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Weighed down by population aging, slow economic growth, and high unemployment, National Insurance Schemes in the Caribbean are projected to run substantial deficits and deplete their assets in the next decades, raising the prospects of government intervention. With the region highly indebted, this paper quantifies the impact of three parametric reforms—freezing pension benefits for two years, raising the retirement age and increasing the contribution rate by one percentage point—that, if implemented, would put the pension schemes on a stronger financial footing. While the appropriate combination of reforms necessary to eliminate the actuarial deficits varies depending on each country’s circumstances, most countries need to undertake reforms now or risk even higher taxes, lower growth and unsustainable debt dynamics.

Subject: Aging, Expenditure, Income, Labor, National accounts, Pension spending, Pensions, Population and demographics, Retirement

Keywords: Aging, Asia and Pacific, Caribbean, Contingent Liabilities, Contribution income, Contribution rate, Economic growth, Europe, Global, Income, Jamaica, Jamaica NIS, NIS viability, Old Age Pensions, Pension scheme, Pension spending, Pensions, Public Debt, Rate, Retirement, Retirement age, Social Security, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/206
Stock No:

WPIEA2016206
ISBN:

9781475545432
ISSN:

1018-5941

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