In what he describes as Government’s “inability” to roll out economic response plan to date, Leader of the Opposition, Honorable Marlon Penn is now proposing that the Social Security Board be revised to include unemployment benefits. This was one of the measures proposed in “COVID-19 – Strategic Economic Recovery Plan“, addressed to the Government and territory.
Honorable Penn said “Varying concepts of employment insurance program have been talked about for decades in Virgin Islands. Ideally, such a program should have long been implemented to provide income benefits to unemployed persons in order that they are able to take care of their basic needs.”
Under his newest proposal, Mr. Penn said that this measure will prevent us from “digging into Government coffers for unplanned, unbudgeted and unsustainable social spending” and serve as a means of sustenance in times of pandemics and the natural disasters.
Within his address, the following were highlighted;
- Make the necessary legislative changes, so the Social Security Board could administer such a program.
- Design for short term support of temporary unemployment – no more than 3 months.
- Pay a maximum monthly benefit equivalent to a certain percentage of monthly salary and subjected to a cap.
- Seed funding to be provided – 25% by Government and 75% by Social Security, or 100% by Government.
- Program MUST be contributory (moving forward)
- Seed funding to be recouped by amortizing over an extended period and deducted from employees.
- Eligibility limited to persons who have made at least 24 months of statutory contributions, during any 60-month period.
- Administered initially through an existing unit of the Social Security Board, which has vast experience in paying benefits.
Since the onset of Coronavirus, residents have been calling on the Social Security board for financial relief.
In the initial stages the board said they cannot facilitate the request since the current legislation does not support it. The Premier in response had said that the board reserves the right to suggest legislative changes, however, that was rebutted by Board Chairman Ian Smith, who said the board made legislative suggestions over the years to several governments who were reluctant to act on it.
More recently, the Premier Fahie announced that the Government is currently in talks with the Social Security Board to discuss an initiative that promises to bring some much needed relief to residents impacted by the Crisis.
The board is said to be sitting on a $400 million fund.