– Will allow NIS pension to increase periodically
Vice President, Dr Bharrat Jagdeo says the government, when reelected, will continue to inject massive financial resources into the National Insurance Scheme (NIS) to ensure it remains solvent and capable of increasing NIS pension payouts periodically.
He made the disclosure even as he reiterated the announcement by President, Dr Mohamed Irfaan Ali, whereby senior citizens will be receiving a one-off cash grant beginning Friday.
Reporters were reminded that fears have been voiced that if NIS continues to struggle financially, it may become bankrupt. This, Dr Jagdeo assured will not happen as the government will continue to intervene.
“We will do that in a major way in the next term to ensure that NIS pension can also be increased periodically. Because although we have doubled old-age pension, the NIS pension has not increased significantly because it’s based on their state of finances,” the VP pointed out at a party’s press conference on Thursday.
It is important to understand that NIS pension differs from the old age pension granted by the government. Since 2020, the administration has ensured that old age pension increased, from $20,500 in 2020, to $41,000 in 2025.
“The government does not own the NIS but we will have to ensure that the NIS not only remains solvent but can have major injections from the treasury so they can meet their obligation to their contributors,” Dr Jagdeo underscored.
Earlier today, President Ali declared that senior citizens who have not qualified for NIS pension will be receiving a one-off cash grant between $250,000 to $650,000.
The programme caters to elderly citizens who have attained the age of 60 on or before December 31, 2024, but did not meet the 750 requirements to access NIS pension.
Senior citizens who have made between 500 to 749 contributions will receive as follows:
- 500 to 549 NIS Contributions – One-Off Payment of $260,000
- 550 to 599 NIS Contributions – One-Off Payment of $390,000
- 600 to 699 NIS Contributions – One-Off Payment of $520,000
- 700 to 749 NIS Contributions – One-Off Payment of $650,000
It is estimated that 25,000 pensioners nationwide will benefit from this billion-dollar initiative. And according to Dr Jagdeo, this massive undertaking will not put the NIS into jeopardy, since it is fully absorbed by central government.
This initiative was birthed following years of community outreaches led by President Ali, and even in the NIS, whereby numerous senior citizens, including sugar workers, farmers, an even public servants complained of being robbed of their rightful benefit.
“We listen to people on the ground … and when we hear people complain about [NIS]…we do not see it as a problem [or] a criticism of the state. It is an opportunity to help resolve people’s issues,” Dr Jagdeo reemphasised.
These initiatives of the Ali-led administration are aimed at supporting and improving the livelihoods of all Guyanese, in keeping with its commitment outlined in its 2020-2025 manifesto.