St. Kitts and Nevis SSB continues public consultations as urgent reform efforts move forward

The St. Kitts and Nevis Social Security Board continues to actively engage with residents to solicit input for urgent reforms to the Social Security Fund (SSF). Two town hall sessions are planned for this week: Tuesday night in Crab Hill, Sandy Point, and Thursday in Old Road.

The SSF reached a critical juncture in 2017 when its total expenditure surpassed its contribution income. According to the recently published 2021 Housing and Population Census, St. Kitts and Nevis faces a declining birth rate and improvements in healthcare mean citizens and residents are living longer. This demographic shift suggests that more individuals will draw from the fund while fewer will contribute, putting additional strain on the system.

Experts warn that without urgent reforms, the SSB’s $1.7 billion reserve could be depleted by 2040. 

Despite these challenges, Christopher Louard, Director and Chief Executive of the Social Security Board, has given the assurance that the SSF remains solvent.

“We have funds to meet our current obligations. We have a reserve of $1.7 billion which has been accumulated over the last 46 years,” Louard said.

He emphasised the necessity of reform to ensure the sustainability of  the SSF for future generations.

“We need to make reforms that will ensure that the Fund is there in perpetuity and at least for another generation,” he added.

The Actuarial Report highlights three critical areas for meaningful reform to ensure the sustainability of the Social Security Fund. These include an increase in the contribution rate, proposing a higher rate of contributions from both employers and employees; suggesting changes to the way pensions are calculated, potentially adjusting the benefits to align better with the Fund’s financial capacity; and increasing the pension age, recommending a gradual increase in the age at which individuals become eligible for pensions, reflecting longer life expectancy and extending the period of contributions.

Photo provided: Social Security officials at previous town hall meeting.

Click this link to join the SKN Source WhatsApp group for the latest news and updates right on your mobile device!  You can also follow us on Facebook here.