This information can be obtained in the form of a booklet (pictured opposite), which can be obtained from the National Insurance offices. Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13

The amendments to the National Insurance Act are intended to repeal obsolete areas of the law to make the system more relevant to today's needs, enable the National Insurance Corporation (NIC) to operate more efficiently by strengthening enforcement mechanisms to improve service delivery to all stakeholders and to ensure the continued viability of the fund

The revised provisions include a new ceiling for maximum insurable earnings and pensionable age, as well as reforms to the registration process, eligibility criteria for various benefits and more effective adminstration of employer obligations.

The first stop on our journey through these reforms will be to outline the responsibilities and liabilities impacting both employers and employees. This will be followed by the revised provisions relating to various benefits.

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1. To register yourself or your company as an employer before you hire your first employee.
2. To register your employees within 7 days of hiring them, if they have not been previously registered
3. To ensure that you have and use a National Insurance number for each employee.
4. To remit the whole of the combined deduction to the Corporation's Local Office on or before the 7th day of the month following the month, for which contributions are due.
5. To ensure that the appropriate information relating to the amount of the contributions being paid for each employee, is remitted to the Corporation at the time that such contributions are being paid.
6. To ensure that all information given on any National Insurance Forms including contribution data are correct.
7. To complete the employer section on any forms relating to Benefits for insured persons in your employ.
8. To allow the Authorised Officer of the Corporation access to any printed records, computer and associated apparatus used in connection with the preparation of records relating to National Insurance.

Under the new rules, any sum of money payable by an employer under the National Insurance Corporation Act as contributions and deducted by the employer and not remitted to the Corporation by the employer shall: -

• a. Be deemed to be held in trust for the Corporation by the employer.
• b. not be subject to attachment in respect to any debt or liability of the employer.
• c. form no part of the assets of the employer in the event of liquidation, assignment or bankruptcy of the employer or his business.

Every employer who ceases business operations should inform the Corporation within seven days of doing so, and complete the necessary cessation/dormancy forms. It is imperative that employers comply in order to assist the Corporation in maintaining accurate records.

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1. The name and NI Numbers of employees in your employ during the month.
2. The total amount being remitted for each employee which comprises the combined employee and employer's portion.
3. Any other information required by the National Insurance Corporation.

The Form C3 may be a computerized spread sheet or a copy of the form which allows you to give effect to this format on your payroll application and in so doing provide for down loading this information monthly to diskette, or reproduce the format for use in subsequent months.

You are required to complete the form C3 and to pay contributions monthly. Either the diskette or the completed form C3 must accompany your payment.

The payment procedure has not changed. The methods are as follows:-

1. Post to the National Insurance Corporation
2. Drop your C3 form or diskette with cheque at our Express Box, or
3. Present the cashier with your cheque or cash, the completed Form C2 and diskette or Form C3.

You will be issued with an official receipt for all payments.

Upon promulgation of the Act, where payment is not made by the 7th of the month following the month for which contributions are due, a surcharge equivalent to 1.25% of the sum will be charged to the employer for that month and every month thereafter for which that amount remains outstanding.

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The revised laws allow the Corporation to garnish funds without the necessity of obtaining a court order. Where the Corporation believes that any person is indebted to or liable to make a payment to another person and that other person is indebted to the Corporation for unpaid National Insurance contributions, the Director may deliver to the first mentioned person a demand for payment stating: -

1. The name of the person indebted to the Corporation.
2. The debt due including surcharge.

Where the person indebted to the Corporation is the employee of another, the amount demanded for each pay period, shall not exceed one-third of the sum payable to this employee during that period.

Every person who receives such a demand shall be required to pay to the Corporation the amount demanded or the amount that he owes the debtor, whichever is less.

Failure by any person to comply with a demand notice carries a fine of $5000.00 or 6 months imprisonment or both.

Employers should note that the fines attached to all summary offences have increased, in some instances from $1,000.00 to $5,000.00 and from $250.00 to $2,000.00 or six (6) months imprisonment.

The statutory limitation period of six years to recover debts due to the Corporation has been extended to forty (40) years. As a result debts which are six years old and over will no longer be statute barred and can now be recovered by the Corporation.

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Under the new provisions Directors and Managers of Companies can now be made jointly and severally liable to pay all amounts outstanding, by joining them as third parties together with the company in a civil action.

A Director or Manager can discharge such liability if he or she establishes that he or she exercised a degree of care, diligence and skill to prevent the failure to pay which a prudent person would have exercised in comparable circumstances.

Please note that outstanding contributions include any amount payable by an employer as a contribution under the Act and deducted or due to be deducted from an employed person's wages or remuneration in accordance with the National Insurance Corporation Act.

This procedure will allow the Corporation to recover unpaid contributions without having to file an action in the Court. Once a Warrant is processed and filed with the Court Registrar, the Corporation will be able to seize and sell goods, chattels and other property belonging to a delinquent employer in order to recover unpaid contributions.

All Employees must be registered; including casual workers, relatives, contract workers, and civil servants in non-pensionable posts or on contract. Existing registered employees will continue to be insured under the Act.

Employers who fail to register themselves as employers or their employees within the specified time frames are liable on summary conviction to a fine of $2000.00 or 6 months imprisonment.

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Where an employed person is registered with the Corporation, he must provide his employer with his National Insurance number within 7 days of employment.

If he or she is not registered with the Board, he or she must accurately complete the registration form within 7 days of employment and is responsible for the correctness of the particulars inscribed on the application form.

An employed person who fails to provide the employer with the complete and correct information needed for registration or who fails to apply for registration in accordance with the above will be liable on summary conviction to a fine of $2000.00.

Voluntary Insurance is a new concept and is a provision which allows an insured person who is no longer employed, to maintain his or her contribution record during periods of unemployment. An insured person who is unemployed or not self-employed and is between the ages of 16 and 65 years may apply to contribute voluntarily. Such contributions will allow such contributor to qualify for long term benefits only.

Applications must be made WITHIN ONE MONTH of cessation of insurable employment.

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This category of contributors can register in the prescribed manner and pay contributions at the same rate as employed persons on an amount agreed upon by the Contributor and the Board. This amount will be based on an average of the contributor's monthly income but will not exceed the maximum insurable earnings ceiling in force at the time. These amounts can be revised at the request of the contributor as his or her average income approaches the maximum insurable earnings limit.

Self employed contributors will be entitled to both short and long term benefits with the exception of employment injury benefit. In order to qualify for a short term benefit this contributor will be required to have at least twelve (12) consecutive months of contributions immediately preceding the date of his or her claim.

INSURABLE EARNINGS

The maximum insurable earnings will be increased to a limit of $60,000 per annum or $5000 per month. Accordingly, salaries/wages in excess of $3000 per month will be subject to increased National Insurance deductions. For example, the total monthly National Insurance contribution for an employee who earns $4000 per month will be $400 ($200 employee, $200 employer), while the monthly contribution for an employee who earns $6000 per month will be $500 ($250 employee, $250 employer) as the ceiling is $5000. NOTE: THE 5% RATE FOR EMPLOYEE AND 5% FOR EMPLOYER REMAINS THE SAME.

THE AGE BENEFIT AND QUALIFYING CONDITIONS

The National Insurance Age Benefit is designed to supplement the income of individuals upon attaining pensionable age. Every employee who has paid National Insurance contributions is entitled to an Age Benefit in the form of Pension or Grant and application can be made upon attaining pensionable age irrespective of whether such person is still engaged in gainful employment.

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At present the pensionable age is 62 years. There will be an incremental increase to age 65 outlined in Table I below.

• The pensionable age, at which a full pension will be payable, will be 62 years, in the first three year period (see Table I ) .Early retirement age will be 60 years, at which time a contributor will be eligible for a pension reduced by a factor. The factor will be computed as 0.5% per month of age below the pensionable age.

You must apply for the Age Benefit within 3 months of attaining pensionable age and having retired from gainful employment. Where the claim is submitted after the 3-month period, the claim may not be honoured unless the claimant show good cause for the delay in submitting the claim.

THE MATERNITY BENEFIT

The National Insurance Maternity Allowance is paid to insured women who lose earnings as a result of pregnancy, and is a payment of 65% of insurable earnings for a maximum of 3 months.

The Maternity Grant has increased to $600.00 and is payable to an insured woman whether or not she loses earnings as a result of pregnancy. A grant can also be paid using the contributions of a husband or common law spouse who is in insurable employment.

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The National Insurance Survivors' Benefit is a payment or periodical payment made to specific dependants of an insured person who dies otherwise than by way of employment injury. If the deceased insured dies by employment injury his dependants must claim for the Death Benefit under Employment Injury Benefit.

• (a) The following persons can claim for the Survivors' Benefit - the widow, widower, children/stepchildren, adopted children, or dependent parents of a deceased insured. However, no benefit will be paid if the deceased insured received a Retirement Grant before death. Under the new Act the benefit will change from 25% children, 75% spouse to 50% children, 50% spouse. However in instances where the only survivor is a spouse he or she will receive 75%.
• (b) The definition of the word child has been extended to include children of an insured person who did not reside with the insured but was maintained by him or her during their lifetime. As a result such children can now qualify as survivors for the purposes of a survivors benefit.
• (c) The Act recognizes the common law union for the purposes of these benefits and the co-habitation period for a Common Law union for the purposes of the Act will increase from 3 to 5 years.

The dependant(s) must apply for benefit within 12 months of the date of death of the insured person. Where the claim is submitted after the 12-month period, the claimant is required to establish good cause for the delay in submitting the claim.

The National Insurance Funeral Grant is a lump sum payment, made to the person who paid the funeral expenses of a person who was insured under the National Insurance Act.

The Grant has increased from a maximum of $1500.00 to $1750.00. The claim must be submitted to the Local Office no later than 6 months after the date of death of the insured person. Failure to submit the claim on time can result in loss of the benefit unless the applicant could show that throughout the period between the date of death of the insured and the date on which the Corporation received the claim there was good cause for the delay in submission.

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The National Insurance Sickness Benefit is paid to an insured person who loses earnings because he/she is incapable of work due to sickness or who is suspected of having a contagious disease and is so certified by a Registered Medical Practitioner. This benefit is not paid if incapability arose from injury on the job.

Where a person has received Sickness Benefit for 26 weeks and continues to be incapacitated an application must be made for Invalidity Benefit.

The National Insurance Invalidity Benefit is paid to an insured person who is medically certified as being permanently incapable of work because of sickness caused otherwise than by employment injury. The Insured person must meet the following conditions: -

1. The insured person must be certified by a medical practitioner registered in St. Lucia as being permanently incapable of work because of sickness caused otherwise than by Employment Injury;
2. that the insured person has made 120 months of contribution or more; or
3. that the insured person has made a minimum of 60 months but less than 120 months of contributions, 36 of which must have been made immediately and consecutively preceding the month of invalidity; and
4. such person must be below the pensionable age and not in receipt of a Sickness Benefit.

There are four benefits which can arise as a result of employment injury, namely the Employment Injury Benefit, the Disablement Benefit, Medical Expenses Benefit and the Death Benefit.

1. The Employment Injury Benefit is paid to an insured person who is rendered incapable of work through personal injury caused by an accident which arises out of and in the course of his employment, or through a prescribed industrial disease caused by the nature of his employment. The Third Schedule of the National Insurance Regulations has been revised to include a wider range of prescribed diseases.

2. The Disablement Benefit is paid where the relevant accident or prescribed disease arising out of or in the course of employment results in permanent total disability on the insured. It is compensation for loss of physical or mental faculty and includes disfigurement whether or not accompanied by loss of faculty. This benefit can be either a pension - where loss of faculty is severe and is paid for life or until the disability ceases or a grant - where loss of faculty is not severe and is paid as one lump sum payment.

3. Medical Expenses up to prescribed limits are paid to an insured person who incurs the cost of medical treatment for the employment injury or prescribed industrial disease.

   Upon promulgation of the Act, the ceiling for Medical Expenses will be set at EC$20,000.00 per injury or prescribed disease.

   The insured person must apply for this benefit within 6 months of the date on which the expenses were incurred.

4. The Death Benefit is a payment or periodical payments made to specific survivors of a deceased insured person who died as a result of an employment injury or a prescribed industrial disease. Such benefit shall be payable to one of the following groups of survivors': a widow, widower, children (natural, adopted and stepchildren) or dependent parents.

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ALL insured persons must submit their claims for the following benefits within the specified 6-month time frame:

• Invalidity Benefit
• Sickness Benefit
• Maternity Benefit
• Disablement Benefitt
• Funeral Grant
• Medical Expenses
• Employment Injury Benefit

Failure to submit the claim to the Board within the specified time frame may result in loss of benefit for any period more than 6 months before the date on which the Board receives the claim, unless the applicant could show that throughout the period between the start date and the date on which the Board received the claim, there was good cause for the delay in submission.

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