Financial Performance

Financial Result

Net income for the year amounted to $20.72 M compared to $18.95M of the previous year, an increase of 9.37%. This increase was mainly the result of increases in contribution and investment income.{{more}}

Contribution Income

Contribution income increased from $18.95M in 2003 to $21.56M in 2004. The increase of 4% was partly due to increased registration and increase in wages and salaries in the public and private sectors.

Benefit Expenditure

Benefit payments have a direct link with contributions. The NIS operates the pay-as-you-go system of funding in that current contributions are used to pay current benefits.

During the year benefits paid amounted to $14.09M compared to $12.94M in the previous year. As previously stated, contribution for the periods 2003 and 2004 totalled $21.56M and $20.22M respectively, giving a surplus of contributions over benefits of $7.48M and $7.29M. Although there is seemingly a positive yield, it is projected to decline in the future, at which time arrangements would have to be made for the additional funding.

Investment Income

The NIS Investment Policy was implemented in 2004. The policy paved the way for an investment portfolio that matches the needs of the institution. In 2004, returns on investment amounted to $.17.85M and $15.62M in 2003.With this level of income the NIS achieved a yield on the portfolio of 6.8% compared to 6.5% in 2003.