By John Denny
Observer Reporter
(Ramsbury, Nevis) – The Department of Social Security has been holding a series of meetings this year seeking input from the public on possible reform measures that could keep Social Security financially viable into the future.
The department has held 50 meetings since January. One such meeting was held May 9 at the Shiloh Baptist Church in Ramsbury.
“Right now Social Security is strong. The fund is stable and well managed,” said Assistant Director of Social Security Elvin Bailey. “It is the future that we are concerned with.”
The Social Security fund will continue to grow until the year 2035, but by the year 2065, reserves in the fund will be depleted. If something doesn’t change, people born after 1990 will inherit a bankrupt system, according to Mr. Bailey.
“Our population is aging,” Mr. Bailey said. “This means the ratio of contributors to aged pensioners is declining and will continue to decline. Any change now would control the erosion of the system, whether it would be a higher deduction or a reduction in the number of benefits paid out. The purpose of the meetings has been to determine from the people what they would be willing to accept.”
There is abuse in the system, said Mr. Bailey.
“Some people take advantage of Social Security,” he said. “There are those who just want some time off, but can’t afford to, so they claim sickness and draw from the fund and there are many people who have moved away to say Canada or England and then move back here to retire. Many people return here to retire because they can draw from the Social Security Fund.”
Social Security works on a matching scale. Five percent of worker’s wages are withheld. That five percent is matched by the employer and another one percent is matched by the government. Employers are required to register within seven days of becoming an employer and begin withholdings within 14 days of an employee starting work.
The main purpose of the Social Security Fund is to provide relief for loss of income for insured workers and their dependents due to age, sickness, invalidity and death.
