Grenada: Gov’t amends National Insurance Act

CMC – The Grenada government has successfully tabled legislation amending the National Insurance Act allowing for an increase in the retirement age, as well as a redefined meaning of the word, child.

In addition, the amendment also allows for the increased penalties for violation of the measures contained in the legislation that was first passed in 1983.

According to the amendment, as of January 2024, the age of retirement will increase incrementally by one year until 2028, when the retirement age will be 65.

Leader of Government Business in the Upper House, Adrian Thomas said the amendments are intended “to preempt and bolster pending amendments to the National Insurance Benefit regulations and National Employment Injury Benefits regulations to improve the benefits available to children of insured persons.”

One of the significant changes is that of the definition of the word “child” in the Act.

The Act, prior to the proposed amendment said “child”, in relation to an insured person, includes a step-child, an adopted child and any other child whether born in or out of wedlock under the age of sixteen living at the home of an insured person and wholly or partly maintained by him or her.

The approved amendments to the definition will allow for the age of the child to be increased to 18 years and that child whether or was maintained by the insured prior to the insured’s death will be eligible for benefits under the scheme.

“Our intention is to put this bill into effect from the first of August 2023 and also the related regulations will come into effect on that particular date,” Thomas said.

Social Development and Gender Affairs Minister, Gloria Thomas said the bill was “timely and relevant” adding that “if we are to save the NIS, the decision to extend the retirement age is one where crucial measure must be taken to assist in this rescue mission.”

“Great leaders take hard decisions in the interest of people and this decision to move the retirement age to 61 in January 2024 is indeed a hard one.”

“The record shows that since 2002 recommendations were made to start increasing the pensionable age to keep the scheme viable, but the recommendations were ignored…21 years later, it took this administration to come forward to amend the legislation to make this possible.”

Thomas told legislators that the one-year old National Democratic Congress (NDC) administration “inherited a situation where succession planning is woefully lacking in the public sector” and as such “extending the retirement age, will allow for time, to correct, in part, some of these deficiencies in the service.”

“By extending the retirement age, it gives government the opportunity to help address the skill gap, where relevant and to give our knowledgeable and experienced senior workers, the opportunity to continue to contribute to our society and to the NIS as well while the younger ones get the opportunity to understudy these experienced workers,” the Social Development Minister said.

Defending the decision to increase penalties for violating any part of Section 56 of the principal Act which deals with offences such as failure to pay contributions, making false statements to receive benefits, and unlawfully deducting employees contributions, Thomas said the fine would increase from EC$1,000 to $5000 (One EC dollar=US$0.37 cents) “to deter attempts at abusing the social security mechanism.”

“A law without this kind of penalty, is a law without teeth, therefore it’s very important that we give the courthouse, the necessary legislation that would ensure that the law can be applied,” Thomas said.

Additionally, the amendments allow for the Minister responsible for the NIS to impose on any establishment or individual in violation of the regulations, a penalty of EC$2,000, up from EC$500.

“We want to put all measures in place, not to find remedial solutions, but to take preventative measures of situations that may possibly cause us to go in that direction,” said Thomas adding that “those are the reasons why we are taking and putting these measures in place because we believe that we have a responsibility and as a government we must stand up to our responsibility.”

Attorney General and Minister for Legal Affairs, Claudette Joseph, said the bill “is a very short bill…with very far reaching impact for the people and for the application of the Act by the National Insurance Scheme.”

Members on the Opposition, including the Senator representing Business, Salim Rahaman and Andre Lewis, who represents workers supported the bill, even as Lewis made a plea for government and employers to work together to improve the island’s health care systems.

“Employers must understand, even if the retirement age had remained at 60, that the older you get, there are some functions that you will not be able to do as efficiently or as quickly as in the past,” he added.

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