More Employment Needed to Help Social Security
Increasing the employment levels in Montserrat would help alleviate the problems currently being faced by the Social Security Fund.
That’s according to its Director Kenneth Scotland.
Speaking at a town hall meeting on Thursday Mr. Scotland said age benefit is the number one cost for the Fund.
The Social Security Fund recently informed the Government of challenges it is Experiencing, which would have “serious impact on its ability to meet its obligations,” as the Fund is projected to deplete its reserves by 2025.
Director of the Social Security Fund Kenneth Scotland.
Based on actuarial advice, the Fund recently made several recommendations to the Government of Montserrat.
They include increasing the contribution rate to 11% in 2021 and adopt a schedule of additional increases that would take the rate to at least 15% by 2025; gradually increasing the age at which reduced Age Pensions are payable while at the same time increasing the reduction factors that apply from ½% to ¾% per month.
Other recommendations include reducing the maximum Age/Invalidity pension percentage rate from 60% to 55%; and Government of Montserrat injecting funds into the Social Security Fund in the short-term to offset deficits.
Actuary Derek Osborne says the Social Security Fund has been operating a deficit for each of the last five years.
Derek Osborne.