by Linda Straker
- Lower House approved on 20 June 2023, while Upper House approved on 26 July 2023
- Age of retirement will increase to 65 as of 2024
- Offences under various sections of NIS Act will result in higher fines
Both the Lower and Upper House members have approved amendments to the National Insurance Act that will see changes and penalties for those who violated the mandatory provisions of the Act when it comes to payment of contributions, increasing the age for retirement and changing the definition of a child.
Members of the Lower House or House of Representatives gave their approval on 20 June 2023, while members of the Upper House or Senate gave their approval on 26 July 2023.
The age of retirement will increase to 65. The process will commence in 2024. The first set of people to retire at age 65 will be workers who turn 65 in 2028.
It was explained that the law in its current construct defines a child in relation to an insured person to include a stepchild, an adopted child, and any other child, whether born in or out of wedlock under the age of 16 living at the home of an insured person and wholly or partly maintained by him or her, but the amendment to the law will widen the definition.
Members were told that this particular definition poses certain challenges for potential beneficiaries, so this new definition seeks to overcome these challenges or problems within the current definition and set in order a new definition that is much clearer and prevents the exclusion of a child. The new definition will mean a biological child or a person declared or presumed to be a biological child; a stepchild; an adopted child; or a person expressly acknowledged by the insured person as a biological child or stepchild under 18.
Regarding the increased penalties, Independent and Opposition senators expressed concerns about the 2-month prison time that can be imposed on employers and individuals who violate section 56 of the NIS Act. Offences under that section include failing to pay deducted contributions and making false statements to the NIS office. That fine will move from EC$1,000 to EC$5,000.
Senator Roderick St Clair, who represents the agriculture and fishing communities, believes that the increase in fines should also reflect an increase in prison time. The 2-month period was enacted as part of the original law.
However, Adrian Thomas, Leader of Government Business, argued that the change is to encourage payment of the month to NIS and not to jail people. “We are not interested in jailing people,” Thomas told the House.
Those who violate section 64 of the Act will now face an increase in fine from EC$500 to EC$2,000. An offence under this section includes receiving payment for a person or beneficiary where a benefit has been suspended and providing false documents to the NIS to claim a benefit, such as a widow or a widower entitlement.
Senator Salim Rahaman called for the NIS to investigate those who submit false medical claims to both the NIS and Employers. He said some employees submit sick leave in the name of wanting time off to have a good time.
