The seventh actuarial report of the Social Security scheme was also tabled at today's meeting of the Senate. Labour Senator Rene Gomez pointed out that on page 8 it warns against the use of Social Security funds for the NHI project.
Senator Rene Gomez, Union
"Mr. President if you would note that since NHI started, in 2001-2005, the short term benefit branch has been charged to cover for this project to the amount of $25 million. Now another $15 million for the years 06 to 08, according to this actuarial report, that will be disbursed $5 million per year.
My understanding, since I was part of the working committee recommending amendments to the Social Security Act, was that at the end of 2006, this $15 that was supposed to be incremented, $5 million per year, had already been disbursed from the Social Security fund, from the short term branch. And so it is very alarming since the actuaries are saying that this is not feasible and that the funds and the reserves are being depleted.
It says, 'it is noted that in previous reports the actuaries had recommended a phase out of Social Security Board's transfer to NHI pilot project as from 2005.' So the actuaries actually were saying that funding for this NHI from Social Security funds should be phased out and here they're making provisions that we lent them some more monies."
Social Security is contributing $15 million to the National rollout of the NHI project. Other news of note from today's House sitting is that Senator/Minister/Ambassador Lisa Shoman was sworn in. Also, the meeting started an hour late, ostensibly because government was not sure it had the numbers to pass the Electricity Amendment Bill. But when it was noted that still no replacement Senator has been named for the Council of Churches, the meeting proceeded. Notably absent from the session was PUP Senator Anthony Chanona, who left the assembly building 5 minutes before the meeting started.
