National Insurance Scheme Reforms in the Caribbean
31 Pages Posted: 9 Aug 2017
Date Written: October 2016
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: Jamaica, Insurance, Grenada, Haiti, Dominica, Dominican Republic, Barbados, Bahamas, The, Asia and Pacific, Aging, Antigua and Barbuda, Caribbean, Contingent liabilities, Western Hemisphere, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago, Pension reforms, Social security, Old age pensions, Retirement, Public debt, Government expenditures and welfare programs, Social Security and Public Pensions, General
JEL Classification: H55, H50, H53
Suggested Citation: Suggested Citation