The National Insurance Fund (NIF) plans to increase its net assets through the prudent management of the investment portfolio mix.
As stated by the Ministry of Finance and the Public Service (MFPS) in the 2024/25 Jamaica Public Bodies’ Estimates of Revenue and Expenditure, the increase will be achieved through participation in opportunities that allow for the maximum growth potential and dividend yield for funds invested in the financial markets.
The improvement in the net asset value will allow for the continued allocation of payments to the National Insurance Scheme (NIS) as required.
The strategies to be undertaken include increasing investments within the maximum allowable policy limits in financial instruments that provide strong prospects for growth, and diversifying the portfolio into assets that provide increased returns.
Reforms will also be pursued to improve the corporate governance structure of the NIF, to enable the entity to strengthen its compliance regime and respond to market conditions, while facilitating sustained growth and returns on funds held.
The NIS was established under Section 29 of the National Insurance Act of 1966 as the vehicle into which the NIS contributions are paid.
Its core function is the investment of NIS contributions to provide optimum benefits to the contributors.
The investment portfolio comprises a diversified asset portfolio consisting of fixed income, equities, loans and real estate assets.
The NIF disburses funds to the NIS to provide for its registered beneficiaries, which include pension grants and health insurance in the form of NI Gold.
The Fund also remits 20 per cent of NIS contributions to the National Health Fund ( NHF).
The NIF projects a net surplus of $38.9 billion for financial year 2024/25 over $20.1 billion for 2023/24.
By BALFORD HENRY JIS
