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In case you haven't heard the rates the national insurance has undergone an increase in last year's budget presentation Finance Minister come in with predicted the move would come in July however it was only enforced on Monday changes at the National Insurance Board are in full effect but for some it's still unclear what inspired the change and wife is necessary speaking on good morning Trinidad and Tobago executive director of the NRL Mrs. Niamey Paar Paglia gave an in-depth explanation of how the NIV works the NIV system and the national insurance system is a quite simple one we collect contributions we invest those contributions, and we pay our benefits to thousands of beneficiaries when they need it most she revealed the source of the recommendations making changes to the contribution rate and the maximum insurable earnings actually was a strong recommendation of the ninth arterial review the 90 review would have been conducted very recently an unnatural if you concur looks at the balance of contributions to benefits and makes the best projections looking at the health of the fund manager fared can reveal that the last financial year so the board paying out more than they received to put some perspective us, so we're the National shown system is right now in the last financial year we would have paid out 4.5 billion dollars and benefits uncollected just under 4.2 billion, so we had to actually take some of our investment income the subsidized under the old system a 12% contribution was deducted from an employee's salary with a new change employees will now pay 13.2% Mrs. Paar Also reminded that the fund exists for the benefit of the employee adding that the cut will be beneficial in the long term meritorious Bernard seen's
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