Prime Minister Drew Announces Progressive Reforms to Ensure the Future of Social Security in St. Kitts and Nevis

At the Budget 2025 National Forum on 30th October, Prime Minister Dr. Terrance Drew presented a forward-looking strategy to safeguard the sustainability of the Social Security Board (SSB) in St. Kitts and Nevis.

Acknowledging the critical role of social security in economic stability and individual dignity, Dr. Drew outlined reforms aimed at protecting the programme for future generations amidst global challenges posed by ageing populations and longer life expectancies.

Dr. Drew spoke on the importance of ensuring financial sustainability for the SSB, describing it as “a fundamental pillar of economic security and social stability for our people.” He continued, “Social security provides support during times of need and ensures dignity in retirement.”

Under his decisive leadership, the SSB has taken significant strides to diversify revenue, including investments in bank deposits, Government T-bills and bonds, equities, and real estate, effectively fortifying its long-term financial position.

The prime minister announced a series of carefully considered reforms intended to maintain a healthy balance within the Social Security Fund, ensuring fairness across generations. Key recommendations include increasing the pensionable age to 65 and raising the minimum contribution requirements for eligibility from 500 to 750. In addition, benefits calculation will shift to a contributor’s best seven years instead of the current best three, helping to align the programme with regional standards and strengthen the overall system.

To bring the SSB in line with International Labour Organization (ILO) recommendations, maternity benefits may extend to 14 weeks, while a maximum pension cap of EC $3,900 will be established. Other updates include a proposed unemployment benefit and a rule disallowing pensions for those who avoid contributions.

Prime Minister Drew emphasised that the SSB’s reforms will be informed by extensive public consultations to ensure these changes reflect the interests and needs of all stakeholders. This approach exemplifies Dr. Drew’s commitment to transparent governance and robust public policy.

Through these reforms, Dr. Drew’s administration is setting a course for a more resilient Social Security system, one capable of delivering meaningful support to beneficiaries for decades to come. As St. Kitts and Nevis adapts to new demographic realities, the Drew government’s proactive measures are expected to uphold the programme’s essential promise of economic security for all citizens.