National Insurance Scheme Reforms in the Caribbean

Koffie Ben Nassar, Joel Chiedu Okwuokei, Mike Li, Timothy Robinson and Saji Thomas

No 2016/206, IMF Working Papers from International Monetary Fund

Abstract: Weighed down by population aging, slow economic growth, and high unemployment, National Insurance Schemes in the Caribbean are projected to run substantial deficits and deplete their assets in the next decades, raising the prospects of government intervention. With the region highly indebted, this paper quantifies the impact of three parametric reforms—freezing pension benefits for two years, raising the retirement age and increasing the contribution rate by one percentage point—that, if implemented, would put the pension schemes on a stronger financial footing. While the appropriate combination of reforms necessary to eliminate the actuarial deficits varies depending on each country’s circumstances, most countries need to undertake reforms now or risk even higher taxes, lower growth and unsustainable debt dynamics.

Keywords: WP; retirement age; pension scheme; Jamaica; economic growth; rate; Social Security; Old Age Pensions; Public Debt; Contingent Liabilities; contribution rate; NIS viability; Jamaica NIS; contribution income; Pensions; Pension spending; Aging; Retirement; Income; Caribbean; Asia and Pacific; Europe; Global (search for similar items in EconPapers)
Pages: 30
Date: 2016-10-17
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Citations: View citations in EconPapers (2)

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