History of Social Security
Insured persons and others should find it a useful guide on matters pertaining to the benefits available from Social Security, as well as contributions necessary to support such benefits. Insight is also given into such topics as the management of the Fund and provisions for review or determination of questions by way of appeal.
The effect of the Fund may be better appreciated if we first look back to the time when ordinary workers were unprotected from the harsh reality of loss of income due to incapacities of one kind or another, or at retirement.
Prior to 1968, which was the year of the establishment of the NATIONAL PROVIDENT FUND (NPF), ordinary workers, particularly workers in the sugar industry and domestic helpers, suffered extreme financial hardships when they were no longer able to work. Meanwhile, persons employed in the civil service and some private sector businesses enjoyed the benefits of pension schemes provided by their employers.
The Sugar Industry at that time employed the largest group of workers. It was mainly for their protection that the SUGAR WORKERS PENSION FUND (SWPF) was established in 1958. Ten years later the existing assets of the SWPF were transferred to “become the property of the NPF to be used for the purpose of providing benefits for those workers who are or have been engaged in the Sugar Industry in the State.”
The NPF was enacted on 20 May 1968 and commenced operations on 10 June 1968. This program provided a lump sum payment to its members at age 60, or earlier in the event of invalidity, or to survivors on the death of a member.
It was soon realized that the benefits provided by the NPF were very limited and inadequate. Resultantly in 1977, investigations were carried out with assistance from the International Labour Organization (ILO) who recommended that the NPF be replaced by a comprehensive SOCIAL SECURITY program to provide protection for employed and self-employed persons.
The NPF Act 1968 was repealed and replaced by the Social Security Act 1977 No. 13. The Social Security Fund commenced operations on 1 February 1978, with similar objectives to Social Security systems in countries all over the world.
The following benefits were introduced in the first instance:
· Sickness
· Maternity
· Funeral
· Invalidity
· Age
· Survivors
From 1 January 1986, the Fund was expanded by an amendment to the Social Security Act, to include the Employment Injury Benefit Branch. Further, on 1 July 1996, Self-Employed Coverage was included as part of the Fund.
Since then, the Social Security Fund has become a powerful source of savings hitherto unachieved in St. Kitts and Nevis. Not only is the Fund of help to individual insured persons and their families, but the effect of savings on a national scale has vastly enhanced the financial strength and stability of the Federation.