Certain pensioners with NIS issues to get lump sum payment

The government recently earmarked $10 billion to support pensioners and the National Insurance Scheme (NIS) and Vice President Dr. Bharrat Jagdeo said some individuals who have been grappling with issues will benefit from a lump sum payment soon.

The Vice President, speaking at a People’s Progressive Party Civic (PPP/C) press conference on Thursday, said some pensioners across the country complained about not benefitting as expected from the NIS.

In some instances, he said, pensioners contributed to the scheme for years but could not make the 750 contributions needed to qualify for pension payments.

Part of why those persons could not meet those contributions, he said, he because employers may not have dedicated the contributions or deducted those sums but did not transfer to the NIS.

“It is a sad situation when you go across the country and people tell you their stories about the contributions that they made or how their employers ripped them off,” he lamented.

To provide some recourse, Jagdeo said part of the $10 billion sum will be paid to some pensioners.

“We’re doing some modeling now as to how this can be done in a fair way to address those people.

“Once we are done with the simulations of the different scenarios, that will be announced and those people will receive a lump sum payment,” Jagdeo said.

In Guyana, the old-age benefit is payable to Insured Persons who have attained the age of 60 years. To qualify for this, the NIS-insured person must have paid not less than one hundred and fifty (150) Contributions; paid or been credited with, or paid and been credited with not less than 750 Contributions.

Aside from the payment to pensioners in need, Jagdeo said a huge sum will be allocated to the scheme so that the NIS doesn’t go bankrupt.

He said this is a needed intervention because the the fund has been paying out more than it has raked in for years.