– pay and grant increases to take effect on 1 January
The Turks and Caicos Islands’ National Insurance Fund (NIS) is on a worrying path to depletion, with Premier and Minister of Finance, Economic Development, Investment and Trade, Charles Washington Misick describing the situation as “quite alarming”.
Laying the 11th Actuarial Review of the Fund before the House on 18 December 2025, Premier Misick revealed that without immediate reforms the Fund is projected to be fully depleted by 2066.
His address followed a significant acknowledgment of the National Insurance Board’s longest‑serving employee, internal auditor Richard Taylor, before quickly shifting to the stark financial reality facing the nation’s key social security programme.
The Premier said: “The actuarial review found that while the NIS is projected to have sufficient contribution income to cover expenses until the year 2037, a negative cash flow is projected to begin as early as 2047. The critical projection year of 2066 marks the point of total collapse for the reserve fund without intervention.
Premier Misick did not mince words about the gravity of the findings and how profound the impact would be to beneficiaries. He stressed that the current structure, while “extremely generous” compared to regional and international security systems, is unsustainable, particularly due to the heavy burden of retirement benefits.
The territory’s leader stressed that the report indicates that retirement benefits currently comprise a massive 77% of the total expenditure of the fund.
“The retiring benefits, even after recent reforms, are still overly generous, and this is done in comparison with regional and some international security systems, and this suggests that further reforms are necessary to reduce long term expenditure, especially since retirement benefits comprise 77% of the total expenditure,” Misick emphasised.
In an effort to curtail the projected shortfall and ensure the perpetuity of the fund, Premier Misick detailed several key recommendations that will come into effect on January 1.
These changes are aimed at increasing benefits for current pensioners and tightening long-term access to reduce expenditure.
Key benefit changes and reforms:
- Pension Increases: A sliding scale of increases for pensions in pay was proposed to reflect inflation:
- 6% increase for pensions in pay awarded on or before March 31, 2017.
- 4% increase for pensions in pay awarded between April 1, 2017, and March 31, 2021.
- 2% increase for pensions in pay awarded between April 1, 2021, and March 31, 2024.
- Minimum pension increases: The Primary Minimum Pension will increase from $460 to $485. The Spousal Minimum Pension increases from $340 to $360, and the Dependents Minimum Pension rises from $135 to $145.
- Access restriction: Access to the minimum pension will be restricted to persons age 65 years, up from the current age of 60.
Grants increase:
- Maternity Grant increases from $680 to $720.
- Funeral Grant increases from $2,720 to $2,860.
- Dependents Funeral Grant increases from $1,765 to $1,855.
- Death Grant and Dependents Death Grant increase by the same rates, from $2,720 to $2,860 and from $1,765 to $1,855, respectively.
- Turning his attention to the Non‑Contributory Old Age Pension, which was originally intended to be phased out but remains in effect, the Premier announced that it will increase from $345 to $365.
He further clarified that new recipients of this benefit will now have to wait until the age of 65.
Acknowledging the necessity of a broader debate on the issue, particularly on the pensionable age, Misick said: “So there has to be a whole debate in the future about pension age in the TCI. That’s not what I’m discussing at the moment…as I said earlier, the preservation of the fund is very critical.”
Coupled with this, the territory’s leader hinted at the possible introduction of Paternity Leave Benefit, a recommendation which would also require further consultation.
