PRIME Minister Portia Simpson Miller says the integrity of the Government’s administration of monies in the National Insurance Fund (NIF) cannot be questioned.

“I can assure you that the Government is not careless to be using NIF funds and not ensure the recovery of whatever is used in the interest of the Fund and Jamaicans,” Simpson Miller told pensioners at the 40th Anniversary Awards Luncheon of the Jamaica Government Pensioners’ Association at the Alhambra Inn in Kingston on Saturday.

Citing the ‘bailout’ to the financial sector in the 1990s, Simpson Miller said that that move was taken “in part to protect pensioners, among others”. According to the prime minister, had the Government not taken that decision, some 55,000 pensioners would have ended up losing their life savings.

“Learning from that experience we have since strengthened pension legislation and regulation to ensure that the hard-earned savings of people like you are not jeopardised,” the prime minister said.

She said efforts to ensure the growth of the Fund was evidenced by the fact that as at the end of January 2005, the fund’s total balance stood at $42.2 billion. This, she said, was due largely to efforts to place the Fund on an aggressive investment path.

“This extraordinary growth in the NIF has come not mainly through net contributions, but through prudent investment efficiency and growth in investment income. And the last five years have seen significant growth in net investment income of the fund,” Simpson Miller said, adding that as a result, national insurance contributions had increased three times between 1990 and 2005, while benefits had increased seven times.

“Because of investments, the old age, invalidity, and widows and widowers grant has moved from $8,100 to $20,000, the special child’s grant from $14,625 to $30,000 and funerals from $30,000 to $40,000. Suppose we were not investing?” she queried.

According to the prime minister however, the Government was still not ready to rest on its laurels despite the current growth.

“As a government we do not by any means feel these rates are adequate…we will continue to review periodically to ensure periodic adjustments to pensioners’ benefits,” she said.

Pointing to the establishment of the Financial Services Commission (FSC) to complement the work of the Bank of Jamaica, the passing of the new Pensions Act in 2004, among others, Simpson Miller said the changes and new provisions had contributed significantly to advancing the interest of pensioners and retirees.

In noting that the reform process was an ongoing one, Simpson Miller also pointed to efforts on the part of the FSC, which is now receiving submissions from existing pension plans, trustees, investment managers and administrators as part of a broad-based technical review to further refine the legislation to better serve the interests of pensioners.

The FSC has been mandated by the Government to complete all the amendments and the regulations by March of 2007; in addition, the Income Tax Act and its regulations will also be amended.

In response to a call by President of the Pensioners’ Association Clinton Davis for the establishment of a pensioners headquarters, Simpson Miller said Finance and Planning State Minister Fitz Jackson would be working with Local Government and Environment Minister Dean Peart to see to the creation of a home for a pensioners office.

The prime minister also had a parting shot for her critics.

“During the short period of time that I have been prime minister, there have been some criticisms about my not talking enough; but I was told that governments internationally love to ‘chat’ too much and that governments talk 90 per cent of the time and implement 10.”

According to Simpson Miller, in trying to “implement, to get close to the 90 per cent and talk ten,” she has been criticised for “not talking”.

“I am sure you will agree with me that what you want to see is deliverables, what you want must be action, not ‘a bag of mouth’. And I can assure you that despite the limited resources my government will try everything it can to ensure that while we balance the books, we balance people’s lives,” Simpson Miller told an appreciative group of listeners.