Vice President and General Secretary of the People’s Progressive Party Civic (PPP/C), Bharrat Jagdeo, yesterday during a press conference at Freedom House, sought to clarify some of the specifics entailed in President Irfaan Ali’s announcement regarding a GYD $10 billion cash injection into the National Insurance Scheme (NIS).
The funding, he reiterated, is aimed at aiding individuals who have contributed to the scheme but fall short of the requirements for a pension.
The Head of State’s announcement, made earlier this month, laid out government plans to support Guyana’s elderly citizens, especially those who have not met the mandatory 750 contributions to qualify for a pension.
Speaking further on this initiative, Jagdeo explained that this funding will be distributed as a lump-sum payment to eligible individuals who, despite years of contributions, do not qualify due to gaps often resulting from employer oversight or mismanagement.
“Some of these contributors cannot be blamed,” Jagdeo explained.
“In many cases, employers either failed to deduct contributions correctly or failed to transmit these deductions to the NIS. Many contributors discovered this only when they reached retirement and were unable to claim a pension.”
This new provision, Jagdeo noted, is aimed at compensating the tens of thousands of Guyanese left without NIS benefits despite contributing to the scheme. He confirmed that the GYD $10 billion will go directly towards these contributors in the form of one-off payments, recognising their contributions over the years.
The government is currently developing a fair distribution model to ensure that those entitled receive the payments equitably. Once this model is finalised and simulations are complete, the payout process will commence.
Additionally, Jagdeo indicated that the government will inject funds into the NIS to ensure its sustainability. Years of paying out more benefits than it has received in contributions have left the scheme financially vulnerable, putting future pensions at risk.
“The government is committed to filling this gap to secure the future of the NIS for the next generations of pensioners,” Jagdeo affirmed.
