10,000 more to benefit from PATH; more for NIS pensioners

BY ALICIA DUNKLEY Observer staff reporter dunkleya@jamaicaobserver.com

Thursday, April 22, 2010

TEN thousand elderly and disabled individuals are to be added to the Programme for Advancement Through Health and Education (PATH) this year.

The new individuals represent those who, up to this point, have fallen out of the reach of the programme as they did not qualify when the standard criteria or means test -- which determine eligibility -- are applied.

Prime Minister Bruce Golding, who made the announcement during his contribution to the 2010/2011 Budget Debate at Gordon House in Kingston Tuesday, said the assistance was being made possible through a US$2.6-billion grant from the Japan Social Development Fund, through the World Bank.

"Despite the tight fiscal constraints and our obligations under the International Monetary Fund programme, we have sought to provide support for the most vulnerable by significantly expanding our social safety net programmes," Golding said.

"We are going to create a new category of PATH beneficiaries for the very old or disabled, many of whom are not on the programme for varying reasons including failing to qualify when the standard criteria are applied but who have special needs because of their infirmity or disability.

"We estimate that some 10,000 persons will benefit through this intervention," the prime minister said.

Finance Minister Audley Shaw, speaking in the Budget Debate last week, said the PATH beneficiaries had increased by 114,000 since his Government took office in September 2007. At the time, he said an additional 18,000 beneficiaries were being targeted for registration this year. He also said expenditure under the programme would increase by 34.19 per cent to $868.2 million in 2011, when compared to 2009/2010.

In the meantime, Golding also sought to address concerns raised by the Opposition about the state of inflows to the National Insurance Fund (NIF) and how it was impacted by the recently concluded Jamaica Debt Exchange (JDX) programme.

According to Golding, the JDX was not solely responsible for the fact that the cost of benefit payouts exceeded contributions at this point.

"That is so but not just because of the Jamaica Debt Exchange... It first became so in 2004, long before the debt exchange," the prime minister said.

He further admitted that there are indeed "issues of concern such as the widening gap between benefits paid out and contribution inflows, the fact that people are living longer and the fact that persons who joined the scheme at the start of their working life when it was set up in 1966 are now becoming eligible for pensions".

However, he Golding said the administration has taken a decision to increase the wage cap used in calculating National Insurance Scheme (which feeds the NIF) contributions from $500,000 to $1,000,000, effective June 1 this year.

And as of June 1 this year the NIS flat rate for domestic workers, self-employed persons and voluntary contributors will increase from $20 per week to $50 per week. Pension benefits payable under the NIS will be increased by 20 per cent while other benefits, including maternity allowance, employment injury, disablement and death benefits, funeral grants, old age grants, invalidity grants, widow and orphan grants will be increased by rates ranging from 11 per cent to 33 1/2 per cent.

In addition, benefits under the NI Gold programme, such as payment for prescription drugs, diagnostic procedures, dental and optical services, will be increased by rates ranging from 25 per cent to 50 per cent.

"The last actuarial review (of the fund) was done in 2005. One will be carried out this year. The Fund, however, remains robust with a net asset value of 61 billion," Prime Minister Golding said.

And starting in 2011, the pension eligibility age for women will be increased by one year each year until it becomes equal with the eligibility age of men, which is 65 years.

Currently the NIS provides for a pension eligibility age of 65 years for men and 60 years for women.

Golding, in announcing the proposed change yesterday, said "typical pension schemes make no such distinction".

Do you feel buying into Facebook now is a good investment for the long-run?
	Yes
	No

View Results
Results published weekly in Sunday Finance

Username:
Password:

Teen killed for laughing at man who fell from bicycle

10,000 more to benefit from PATH; more for NIS pensioners