More money for the needy, says Charles Jr
Labour and Social Security Minister Pearnel Charles Jr has reiterated that beneficiaries of Government’s two key social assistance programmes — the Social Pension Programme and the Programme of Advancement Through Health and Education (PATH) — will enjoy increased benefits, beginning this month.
Making his contribution to the 2024/25 Sectoral Debate in the House of Representatives on Wednesday, Charles Jr said that during May, beneficiaries of the Social Pension Programme received an increase of more than 70 per cent in their bi-monthly benefits, moving from $6,800 to $12,000.
He noted that 14,932 Jamaicans are currently registered on the programme which targets seniors over the age of 75 who are without a pension or any financial support and are not on PATH.
According to Charles Jr, last financial year more than $408 million was paid out in benefits under the Social Pension Programme.
“The budget for the programme this financial year has increased by a whopping 165 per cent to $1 billion,” he said.
Charles Jr noted that the ministry has strengthened its partnership with the Registrar General’s Department (RGD) to enable seniors to obtain their birth certificates as the programme requires that applicants have a birth certificate or Jamaican passport to establish their age.
“Where an applicant has no birth certificate or passport, he/she can use a voter’s ID or a photograph along with an attestation of a person of similar age, both signed by a justice of the peace, to register for the programme. We are breaking down the barriers. Persons can use their marriage certificate, birth certificate of children and school record among other documents [to help verify their age],” he said.
Turning to PATH, Charles Jr pointed out that come June, beneficiaries will receive an increase in their bi-monthly benefits, following a 28.8 per cent increase in the programme’s budget.
He noted that for 2023, PATH, which accounts for 82 per cent of the labour ministry’s social assistance budget and 54 per cent of the ministry’s recurrent budget, was a lifeline for approximately 302,000 beneficiaries.
In the meantime, Charles Jr announced that as of March 2024 the unaudited net asset value of the National Insurance Fund (NIF)
— the repository for all National Insurance Scheme (NIS) contributions and related income
— stood at $190.76 billion which represents a 17.5 per cent year-over-year growth.
He said that positive results are now seen from the various reform initiatives of the NIF which began in 2019.
These, he said, included increasing contribution rates from 5 per cent to 6 per cent, as well as increasing the insurable wage ceiling from $1.5 million to $5 million.
“These reform initiatives coupled with steady investment income have resulted in a healthy stream of income available for long-term investments,” he said.
Charles Jr said that for this upcoming year, the NIF intends to focus on several high-priority areas, including the continued reform of the fund with a view to maximising the rate of return on investments; revised investment policy to minimise risk exposure and ensure long-term sustainability; and the divestment of low-yielding and non-performing real estate assets.
The NIF will also see a $209-million renovation of its Kingston and St Andrew parish office located on Ripon Road; architectural design and plans for new NIS offices and a government services centre in May Pen, Clarendon, at an approximate cost of $26.2 million; and projected expenditure of $35 million during this fiscal year, to improve investment properties within its portfolio for compliance with the Disabilities Act and related building codes.