Usher also discussed the proposed increase in Social Security contributions.
As we reported last week Thursday, Social Security is paying out more money than it is collecting, and that's mainly because the population is growing and aging. So, more benefits are being paid out from the fund, but the contributions from the Belizean public haven't been increased to meet that demand since 2003.
Last year, SSB operated at a deficit of just over 10 million dollars, and if the public does not approve the increase, that deficit will balloon to a dangerous tipping point. That would cause the Social Security Fund to crash, leaving unavailable for future generations of Belizeans.
So, the SSB is trying to prevent that, and the first step is to convince the public to support the package of contribution increases. Recently, they've been meeting with the social partners, including the Belize Chamber of Commerce and Industry.
The Chamber president told us the Chamber is agreeable, but they want to ensure that SSB is also taking steps to be more prudent in managing its own administration::
Nikita Usher, President - BCCI
"We have also written to Social Security to say that when we examine your own records, you now need to start to look at how do you improved your own operations. When you look at some of the operational costs for Social Security."
Reporter
"In terms of administrative bloat?"
Nikita Usher, President - BCCI
"Yes, exactly. We certainly believe that we are supporting a portion of it and there is a portion that we are not supporting."
Reporter
"You are supporting of increasing the contributions."
Nikita Usher, President - BCCI
"Yes. It can't go without doing a portion of it, but there is a portion we are saying we don't want to happen until we can see some changes in some of the operations."
If the proposed increase to SSB contributions is approved, those employees countrywide who earn $320 weekly, all the way up to $520 weekly, would be asked to pay a little more. This would allow SSB's total revenue to increase, and it will give the fund a few years' breathing room.
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