DSS denies having $400-m in reserves

DSS Deputy Director Augustus Ettiene

Dominica Social Security officials have rejected suggestions that the DSS has well over $400 million in reserves and doesn’t need to increase the rates being made by contributors to the DSS.

The organization recently received parliamentary approval to hike up the contribution rate and gradually push back the pensionable age to 65 years.

The current four percent contribution rate is from the 1st of March going up by a quarter of a percent annually for the next 20 years.

The age of sixty to receive pension benefits will also go up by six months annually until it reaches 65.

The Dominica Public Service Union (DPSU) and callers to local radio programmes have denounced the changes, warning that they’ll bring additional hardships to workers struggling to meet their mortgages, pay utility bills and meet a myriad of other challenges.

Denying that DSS has more than $400 million dollars in reserves as was suggested on Wednesday by a caller to a radio talk show programme, Social Security Deputy Director, Augustus Etienne, told Dominica News Online that the latest available figures, for 2010, show that the DSS reserves stood at $327.54 million dollars.

Etienne and other DSS officials say contrary to the view held in some public circles, the increases are necessary to ensure that Dominica Social Security will be able to meet its commitments over the next several decades to pensioners who become eligible to receive their benefits.

“The amount of contributions that came in for the year 2003 were not sufficient to cover the actual cost of the benefits that were paid out in that year’” Etienne gave as one example of the difficulties the DSS faces in ensuring that the scheme remains viable.

He said in that year the DSS had to dip into its reserves to ensure that payments were made.

He explained that in 2007 the organization got a one percent increase in contribution rates, that reversed the trend somewhat.

“But we are back at the point where over 95 cents of every dollar we collect in contributions it goes back out in the payment of benefits on an annual basis,” he said.

The DSS official says the scheme is intended to be there indefinitely to pay benefits to successive generations of contributors, and the organization has to guard against the amount of reserves that are there running out.

“You always need to have money in the fund to be able to pay people their benefits when they fall due, so the changes will need to be made,” he added.

According to Etienne, there is a financing gap, “a difference between the rate at which people are contributing into the system at the moment 10.75 and the actual cost of the benefit package that people have access to”.

He says the benefit package costs 23.2 percent of peoples  salaries where people are now contributing 10.75 percent.

“There will always be need to increase the level of contributions because the gap is too wide’,” he concluded, warning that if action was not taken now, the rate would have to increase by a much higher figure some time in the future.

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50 Comments

  1. Aye Dominique
    March 2, 2012

    I can say clearly from my experience with Dominica Social Security, that persons who are not mandated to pay, do not pay no freaking contribution to DSS, save your money, invest your money, do something else with your money.

    This place is just too bureacratic and full of .

    I have one advice to people who are working for government and do not have a choice as to pay or not. Please ensure if you have children that you place an order at DSS to pay your children their survivor’s benefit when and if you die and leave them stranded because your children will die of hunger if they got to depend on DSS. Make sure that this order is notarized and ensure that your children if they are big enough know where that copy is placed.

    DSS is a waste of time and people’s money and have absolutely no regard for people’s contribution they make.

    Public officers and other workers take heed, ensure that you secure your survivor’s benefit especially for your children, these days you got to plan your death in every respect.

  2. Savant
    March 2, 2012

    Answer the to this DSS
    our problem with DSS is that when ever Government wont they can push there hand in DSS reserves.
    The DSS keep making bad investments, some years ago the Government of the day use our money and the next government give them land in Warner for the money. Is that an investment or a viakivia move? In addition they know for generations the people were working on the land. Now DSS has no plan how they should go about dealing with the land.
    We must as DSS how morch million dollar they unwilling pay for that land?
    I have more to come, let them answer this fist one.

  3. proud dominica
    March 1, 2012

    you not allowing the people to read the truth when i make my statement

  4. Lets Build Dominica
    March 1, 2012

    Guys, lets be serious. I notice all the comments, and I am really disappointed that people are not taking time to listen. Instead of getting emotional, we need to take some time and educate ourselves on the matter.
    The DSS is moving the retirement age from 60 to 65 GRADUALLY, that is to say over from 2012 to 2021. Over 9 years. Also, let us be logical. Persons are putting in 10.75% and can receive: 60% when they are sick, 60% when they are injurred on the job, and 60% when they retire. What is the natural result of this? +10.75-60.00 = 49.25%.
    You know I feel for the DSS persons. Because it seems like no matter how they explain themselves, people are just banked on being difficult.

    • a non
      March 2, 2012

      your formula is all well and good, but would you walk into a dark room without your guard up??? EVERYTHING these administrative people in Dominica do is shrouded in mystery and secrecy. THEREIN lies the problem. how you expect to give people half of the story about THEIR MONEY they paying into a scheme. SMH give respect and get respect, is so i know it. but it seems the execs with their long sleeves and tie feel that they owe respect to nobody huh??? cest la vie

  5. Josepha
    March 1, 2012

    Where were you guys when the people were going around the country for some time giving the information? Check out what is happening with Social Security everywhere making reform a must.

    • Victor
      March 1, 2012

      I concur. The population not growing, many people living longer and drawing pension longer. What about that we cannot understand? My granny enjoying her pension and I want to enjoy my own too so I will wait. DSS do what you have to do.

  6. wa-a
    February 29, 2012

    My fadda work for govt as a teacher then principal
    all the time countrybuting(yah rememba National Provident Fund)to DSS.When he retired he got govt
    pension and zero from Social Sickurity.how many people went through the same situation? $300 million
    can be invested for a decent return unless it is a buffer for something else.So stop get paro and get
    some job creation goin for my black chinee dem so then more contribution can flow to the scheme.

    • Dayandnightvision
      March 1, 2012

      WA-A
      YOUR FATHER MAYBE WELL GETTING HIS DSS PENSION AND HIDING IT FROM YOU AND YOUR MOTHER. ANY OFFICER WHO JOINED THE PUBLIC SERVICE BEFORE 1976 GETS TWO PENSIONS AT RETIREMENT FROM AGE 60, ONE FROM GOVT AND ONE FROM DSS, UNLESS ONE RETIRES PREMATURELY, SO CHECK YOUR FACTS

  7. CLICO jet lag
    February 29, 2012

    At the end of 2010, DSS’s exposure to CLICO and British American was EC$15 million. and provisions have already been made for most, if not all of this to be written off. It is very ironic that any financial contributions made to Skerritt’s DLP election funds by the former Insurance Co., CLICO, was
    indirectly financed
    by our own Social Security contributions? You all see how crooked those greedy, self-centred people in authority are?

    DSS biggest debtor is Govt. Govt. owed DSS at the end of the financial Year 2010 over EC$111 million in bonds and Treasury bills alone. Disastrous investments by DSS in CLICO. Economy in shambles due to inefficiencies and incompetence. Contributions drop significantly due to rising unemployment resulting in less and less contributions to DSS.

    The former CLICO boss is in hiding? Will he use our Dominican diplomatic passport to evade arrest? Another example of the authorities friends in serious trouble with the law. This time CLICO’s boss facing
    criminal charges of money-laundering and fraud in Barbados.

  8. answer me!!
    February 29, 2012

    What about people who retired before that legislation was passed and are expecting to get their pension from Soc Sec. at the age of 60?

    • Gwen Fig
      March 1, 2012

      You’re not affected. You’ll continue as before. Don’t loose sleep about that, you’re ok. God Bless and have fun.

  9. concerned
    February 29, 2012

    well as a public officer i feel helpless. If i have to retire at 65 then, i guess there will come a time I will ask my class to excuse me, so I can go to the washroom to change my pamper. Aw magwe sa we dont deserve that. but i guess when we vote thats all what we vote for.putting hnadicaps in office to run our affairs, thats what the ultimate result will be

  10. Anonymous
    February 29, 2012

    nothing wrong with that the canadian govt might
    put theres up to 67 yrs..much higher

    • Malatete
      March 2, 2012

      Anonymous, comparing Canadadian scheme with ours is like comparing dasheen with figue!

  11. lasko
    February 29, 2012

    DSS IS LEGAL REAP OFFFFFFFFFFF!!!!!!!!

  12. Anonymous
    February 29, 2012

    The solution is simple:STOP CONTRIBUTING to DSS, file an injunction in the High Court to have the government implementing the recently amanded bill/act, and if this does not work, then ALL current contributors go on strike so no more of their monies go to the coffers of DSS.Finally, launch an immediate investigation as to whether funds have been improperly used and ofcourse, the culprits punished.

    But them fellars really rude!! The govt makes it mandatory for one to contribute but at the same time it can’t guarantee that those monies are invested in financially SOUND ventures.

    Had I saved and invested these monies MYSELF,for all these 40 years, I WOULD be able to use my money HOW and WHEN I please. So we have experienced HIGHWAY ROBERY and are now transformed into VICTIMS OF OUR WEALTH.

    But the time for ALL evil does is JUST around the corner.

    HOTEP!!

  13. Anonymous
    February 29, 2012

    COME ON MAN !YOU HAVE TO WAIT UNTIL 65 YEARS TO GET WHAT IS DUE TO YOU!IF YOU WANT YOUR BENEFIT AT 60 YOU ARE NOT GOING TO GET ALL OF IT!LORD,PLEASE GIVE ME LONG LONG LIFE BECAUSE I WANT MY MONEY!

    • Trouble Intended
      February 29, 2012

      Your money? what Money? The money you giving to Social Security is a DONATION.. Forget about getting it back.

  14. Anonymous
    February 29, 2012

    WHATEVER IT MAY I DO NOT AGREE THAT I HAVE TO BE 65 YEARS TO GET WHAT IS DUE TO ME!TOTALLY UNFAIR!

  15. Pedro
    February 29, 2012

    It has become clear that it is the policy of the Government to attack working people in Dominica. The policy is to take from the working man to sustain their politics “Red Clinic, Yes we care, Housing revolution”. Where is the investment in the productive sector? They do not care what happen to you after retiring at 60, they hope you die from misery before you are able to collect Social security at 65.

    • Gwen Fig
      March 1, 2012

      Do you know that in the great democracy USA it is 67 years?You can take early retirement at reduce rate or wait for 67 years. This is a world wide policy, be informed.

      • 1979 eTErNAL
        March 1, 2012

        ohhhhh i get your logic. so if the world jump off a cliff we will go find one to jump off too….

        wow standing ovation for you, gwen banan.

        clap clap clap

  16. February 29, 2012

    We I must say what money are they paying 150 that cannot even buy my mon house hole need , while they purchase land andsell they still don’t have money , goverment. Should check their salaries reduce , Dominican are crying

  17. 1979 eTErNAL
    February 29, 2012

    and whats more DISGRACEFUL, some jacks in the box come here on DNO and criticize thomas letang for wanting to initiate INDUSTRIAL ACTION…..aaalllaasss domnik zor pah ni cheh pour voisin zor??????? shame, shame, shame, but who will bear the blame? ask whyyyyyyyyyyyyyyyyy government cannot pay salaries this monthend, ask whyyyyyyyyyyyyyyyyyyyyyy the treasury empty despite passport sales????? it is laughable that no alarm is raised when the treasury empty?? no alarm????REALLLLY??? COME ON DOMINICANS SHAME ON ALL OF US.

  18. :-)
    February 29, 2012

    DLP campaign funds

  19. AmazingFace
    February 29, 2012

    :lol: I have to laff wi…Ettienne denying DSS has 400 million dollars in reserve. The actual figure is $327.54 million. Not a very big gap between the two figures. But then again, I expect the semantics.

  20. Enlightened
    February 29, 2012

    You all need to stop making bad and low return investments with the people’s money. You all need to stop buying land with the people’s money. You all need to stop investing in local and foreign countries with the people’s money and start running the scheme the way it was intended to run so as to not fail. It may mean that some big time DSS officials will have to take a pay cut but then the entire country don’t have to suffer for the want, not even needs, of a few.

  21. paying the price
    February 29, 2012

    DSS is feeling the disastrous effects of its investments in CLICO. Millions of the People’s money have gone up in smoke. The Manager/CEO of CLICO was riding high in private jet. Money flowing. Political Parties were heavily financed with funds from CLICO. Read all about CLICO and some activities of that boss. Google ‘BARBADOS FREE PRESS on CLICO.’ Read for yourselves.

    Was that CLICO boss handed a Dominica Diplomatic passport? By whom? Was that same person appointed a non-Dominican Ambassador? Was his request for a US visa rejected? Where is that former CLICO boss now? Ask your Govt. about those things. Ask for information and note how you would be treated.

    CLICO is down under and DSS investments in trouble. The easiest way out is to pass the burden unto the people who have no power to do anything about it. The economy is in shambles. Unemployment on the rise and so contributions to DSS have tumbled. What a tangled web DSS and Govt. are in. Mismanagement of the economy and the country on a whole is having its toll. Many like it so. The entire nation is paying the price for the incompetence, inefficiency and Bad Governance of a few in authority.

  22. CMT
    February 29, 2012

    Increase the rate…but Not the retirement age.
    At 60 a person is already OLD for the workplace.

  23. laNGSAL
    February 29, 2012

    sell the building to china and pay me my twenty eight years contributions..

  24. FORKIT
    February 29, 2012

    WHY AT THIS TIME, DO YOU KNOW THAT AS WE TYPE THE IMF,ECB AND ALL MONEARY ORGANISATIONS ARE HERE DISCUSSING WITH THEM FELLARS. LOOKOUT MAYBE WE HEADING TO ANOTHER AUSTERITY CRISIS…

    maybe, A just givin her two cents..

  25. 1979 eTErNAL
    February 29, 2012

    please dominicans dont cry, take it how allu always like it…..flying by night….and allu wonder why dominica can never have night landing….dss crashlanding, MORE TO COME… since I saw the smoke I raise the alarm….but admin et al continue to downplay the high waters ahead…. TANTO TANTO zor tout. i sorry for those who cannot cook in the devils kitchen.

  26. Ileen
    February 29, 2012

    I hope that this will mean while other institutions cannot pay salary increase and give uniform allowance that SS employees will not get these benefits and jewelry. I hope the increase will not be to meet the increase in allownaces

  27. Cerberus
    February 29, 2012

    Don’t blame the people at DSS. They resort under the minister of finance and ultimately report to him. Figure this, 12.5% of all annual contributions are spent on running the scheme (so called admin. expenses) Yet, in their wisdom Govt. decided to cut the interest they pay on the bonds DSS hold ($83.4 million at the last count) to only 3.5 %. It does not take a genius to work out that at that rate you are soon facing a deficit. This does not take into account another $17.6 million in Govt. Treasury bills and the $15 million, non-performing exposure to British American and Clico. Other investments, like Marpin and the land at Warner and Cotton Hill have not produced any returns yet either.
    I genuinely think that DSS would perform better without direct Govt. interference to enable them to put the interest of their investors (because that is what contributors really are!) first.

  28. Anonymous
    February 29, 2012

    Whether we like it or not, there are two sources of revenue – contributions and investment returns. The best one can do with investment return is guess. If the market does well, you score. If it does badly as we have seen over the past 3 years, you are screwed.

    What they ought to do is review their business plan periodically to see how much revenue they need from contributions depending on the market return on their investment.

    I am not a bug fan of 20 year hard and fast plans. Nice to have SUBJECT to review. Twenty years is a very long time and therefore they need to be flexible to respond to changes in market conditions. Perhaps when the world comes out of this funk, there may be a run on the financial markets in which case they may not need to tap into people’s wages to maintain the reserve. On the flip side, depending on the Dominican ecomony, if employment is increased, they may not need the increased contributions from indiviual workers.

    The idea is good, but I am having trouble with a 20 year stab in the dark.

  29. bullcrop
    February 29, 2012

    i will have to run , run, run from DOMINICA!these guys are the MATADORS AND WE ARE THE RAGING BULLS….is time we let ourselves be kick like a football i understand everybody need a dog to keep but why us DSS???why us??? go kick government cuz dey are the one owing ure scheme millions and cannot pay……………………….

    • laNGSAL
      February 29, 2012

      who is gonernment? we our them ministers…

  30. Country Man
    February 29, 2012

    Well – at the end of the day the DSS is a scheme and that’s just how it is.

  31. Morihei Ueshiba
    February 29, 2012

    :roll: Garcon, Dominicans can take blows. First it was the stabilization levy, dem fellas say let us put a VAT for prices to drop,( IT NEVER DROPPED) now people have to work longer to retire and they not even getting all the money they put in Social Security. Life in Dominica is economic slavery.

    • FORKIT
      February 29, 2012

      LOOKOUT DICTATORSHIP AND SLAVERY SHAKING HANDS

      • Morihei Ueshiba
        February 29, 2012

        :lol: All over the world cabinet resigning look at Germant president facing prosecution, look at Romania entire cabinet resigning but not Dominica, just because they getting freeness at red clinic they quiet while the country speedily running to the ground.
        Development is when your leaders are held accountable according to the laws of your land not roads & bridges.
        Dominica is the Zimbabwe of the OECS, look Zimbabwe put registration fees up, in some cases, by 8000%.
        When will Dominicans get relief from all this hardship, When??? Must everyone look to migrate for a better life, our migration rate soo high!!!

  32. Alex
    February 29, 2012

    In all fairness, these guys are the real engineers of economic slavery.
    My people be advised…

  33. Buffong
    February 29, 2012

    What about alternative investments? This is punishment and lazy people in Management of DSS unwilling to venture out and seek ways to build income rather than taxing the already over taxed tax payer. Shame on all of you .. and still there getting fat salaries. Why doesn’t management reduce salaries?

  34. tactical
    February 29, 2012

    OJ had a dollar remember; I well understand the predicament that DSS finds itself in the NBD of Dominica is in a worst situation and that is because some politicians have influenced the boards to enter into some real bad investments. But I know the management team at the DSS are trying their best at turning around that situation. The NBD needs immediate IV to get it straight – I do not envy the management task at these two institutions given the political interference involved..

  35. ineedfree
    February 29, 2012

    DNO thanks for extending the conversation from the talk show.

    There are a few questions that we hope the DSS can answer to or ponder on for the sake of the people.

    1.What are the reasons for the financial gap?

    2.Is it only because you need money to pay the contributors their benefits that you see the need to increase the fee?

    3.If the investments were profitable (or at least you should be able to have profitable projections) why cant the returns be made to cover the gap.

    What we cant understand is why are you empowered to invest and turn around and tell the contridutors that you are in crisis. People in crisis dont invest unless they are confident that wherever they put their money, there is going to be solid returns.

    Hence on one hand you pose to be a wealthy institution(as an investor) and on the other hand you pose as a pauper.

    We are getting a sense that once again our own people who can articulate and engineer in all degrees and on all levels and who should really be our protectors have taken up the task of fastening our seat belts into the flight of economic slavery.

    To the individuals who are brave, bold and putting on the coat of humility/mamaguy, we are looking to see when you will purchase another suv;

    when you will increase your salary and walk around the town with the entitlment banner while our babies are on the verge of malnutrition;

    our sons are on the streets looking for the next mischief;

    our women in the pasture of prostituion(official and unofficial);

    While we “inherit” a trust that is gone to the dungeons of despair.

    No thank you DSS.

    • rr
      February 29, 2012

      PERFECTLY WRITTERN

  36. Legal ponzi
    February 29, 2012

    Then again the DSS is a scheme – if you know what I mean.

  37. Ok
    February 29, 2012

    I understand everything you are saying Mr. Etienne, but what you have confirmed is that the rate will keep going up every year because it is unlikely that this gap will ever be closed.

    But for ordinary people who are counting every penny and whose income doesn’t increase to reflect the costs of living it just means that we will continue to be at a disadvantage, always struggling.

    How are we supposed to save for our retirement because we know that we need to suppport ourselves for the 5, for some 10 years, that we have to wait after retirement so get our social security benefits?

  38. Anonymous
    February 29, 2012

    These kind of peole should be made redundant- if the only strategy to save the scheme is hiking up the pensional age- it clearly shows the mgt is sitting on its hands completely deviod of ideas. Worse, the rest of the population sit on their laurels confortabale when crtical issues like this surface which altimately affect their very dollar, all in reverence to mr.- MAY BE BY THEN WE WILL HAVE A NEW DOLLAR AND NEW CENTRAL BANK IN V/CASE- the RS dollar i call it.

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