Today the Social Security Board held its annual Connect forum where employees, employers, self-employed persons and the general public were invited to part-take in an array of presentations, ranging from the year in reviews, to financials, to the Actuarial review. The event was held at the Biltmore where we spoke to the long-time Actuary, who gave an in depth presentation on the institution's financial trends one of them being contribution rates and how this affects a contributors pension.
Hernando Perez Montas, Actuarial Consultant
"So far the first set of amendments concerning the financial basis has been completed with the ten percent contribution rate affected April the 1st 2022. We expect that that rate of contribution should not increase for a few more years until the end of this decade. Also the sealing on contributions was affected April the 1st, $520 per week that will allow ensured persons to retire instead of 60% of 320 with 60% of 520 as per next year so this is a big improvement in the level of benefit from social security arising from the new law."
"My projections indicate that if the investment performance is adequate for the rest of this decade, there won't be any need to increase the rate of contribution until 2028 2029, so until 2028-2029 the pressing financial basis will be enough there won't be any need to increase contribution rate. Now the ceiling could increase before that allowing you to get better pension, the ceiling could increase the rate of contribution might remain stable until that debate."
"So the key challenge for social security is to get good return on this investment taking into consideration that in 2025 you are having elections again and legal amendments before and election are quite difficult, so any amendment will have to be after 2025."
The entire event was streamed live and you can see it on the SSB Facebook page.
