| In a signal that all continues not to be well at the National Insurance Scheme (NIS), its head, Doreen Nelson,Cheap NFL Jerseys, yesterday resigned after reportedly refusing to accept a recommendation from its Board of Directors.Both government and NIS’ officials remained tightlipped over the issue.Troubling times? NIS’s General Manager, Doreen Nelson (right) yesterday resigned after clashing with the Board. Also in photo is Chairman,Cheap Jerseys China, Dr. Roger Luncheon.Nelson declined to comment yesterday and senior NIS officials either did not return calls or remained unavailable.An official at the Office of the President would only say that Nelson failed to implement a number of directives from the Board and despite requests,Wholesale Jerseys China, refused to do so.During an engagement with the Board yesterday, Nelson who is one of the longest serving NIS employees, again reportedly refused to carry out the directives. She, instead, reportedly tendered her resignation.It is unclear whether the Board and the government have accepted her resignation.A government official, who asked not to be named, said that it has nothing much to do with wrongdoing or fraud, but rather with procedural disagreements. “She has refused to comply.”Nelson’s resignation would come at a time when the state-run NIS is grappling with coming up with new ways to earn more revenue in the face of rising costs.The Chairman of the NIS board is Dr. Roger Luncheon, Head of the Presidential Secretariat and Cabinet Secretary. However,Cheap Jerseys From China, he has been in and out of hospital recently.Last month, it was reported that Derrick Rodney, an Assistant General Manager,Wholesale Jerseys 2020, had his contract reportedly terminated because of “communication failures”.NIS is currently meeting with stakeholders to discuss its future after a periodical review warned that it will run out of funds in nine years, unless urgent measures are taken to increase measures and cut costs.There have been accusations that the fallout of a bad investment of $6B by NIS, into the collapsed regional insurance, CLICO, has helped to contribute to the unsteady state of finances. The Opposition has also accused Government of too much political inference and demanded the resignation of Dr. Luncheon from the Board.However, Government says that NIS is not broke; that it but has billions in its coffers. However, measures must be found to ensure that payments do not exceed its falling revenues or the reserves will literally be eaten away.According to the Eighth Actuarial Review,Jerseys NFL Wholesale, an independent analysis of the fund as at December 31, 2011, NIS is nearing crisis stage and will be exhausted in less than 10 years, unless contribution rates and benefits reforms are done immediately.The report also criticized the National Insurance Reform Committee for failing to make critical changes that were recommended from the 2007 reviewAmong other things, the report is recommending an increase in the contribution rate from 13 per cent to 15 per cent no later than this month end. The wage ceiling should also be increased to $200,000 per month; the pension age raised from 60 to 65 years on a phased basis and a freeze on pension increase for two years until the contribution rate is increased and finances improve.NIS began operations on September 29, 1969, providing coverage to employed, self-employed and voluntary insured persons for three main types of social security benefits – short-term benefits, long-term benefits or pensions and industrial benefits.The system is financed by contributions which are levied on employment earnings up to a wage ceiling and are paid by employers, employees, self-employed persons and voluntary contributors. Surplus funds are invested in various types of securities.NIS surplus in past years has taken a beating, especially after the scheme invested US$30M in the now bankrupt CLICO. Even though it was able to invest almost US$10M (G$2B) in the Berbice River Bridge, its contributions are less than its expenditure. |
