It was a stunning revelation amid reports to our newspaper that SSB?s actuary, Hernando Perez Mont?s, among his list of recommendations to the SSB?s in his Nov. 03 report, is recommending an increase in social security contributions.

Under the Social Security (Reform) (Amendment) Act 2003, 45.1.a. ?The Minister shall, as soon as possible after receiving a report [from the actuary] in accordance with subsection (1), direct the Board to adjust the contributions and benefits based on such report.? [Emphasis ours.]

Those adjustments may come as early as this year. If the ceiling of insurable earnings is increased, it means that for some people in the higher wage bands, the actual dollar value of our contributions will increase.

It is clear that Government?s push early last year to hike Social Security contributions from 7% to 8% of insurable earnings, to increase the insurable earnings ceiling from $320 to $640, and to increase the retirement age by two years?proposals that all had stern opposition from both employers and employees?has not died.

Said Mont?s in his report on the SSB: ?The Government?s agenda contemplates a new increase in the ceiling of insurable earnings?

?The adjustment [of the retirement age] from 60 to 65 years could be effected by 6-month increments per year between 2005 and 2010.?

In 2001, insurable earnings were increased from $110 to $320. Last July, the rate of contributions on those insurable earnings was increased from 7 to 8% and, the Belize National Teachers? Union?s president, Anthony Fuentes, said at a press conference this morning, that the SSB had gotten $7.8 million from the rate increase alone.

In a presentation made this afternoon to the media and organizations representing workers and the private sector, Mrs. Garcia outlined SSB?s financial position, noting that SSB?s income has increased from $16.7 million in 1999 to $40.9 in 2003. Her presentation also showed that while income from Social Security contributions has increased 145%, the income from investments has, in fact, declined 3%, from $16.5 million in 1999 to $16 million in 2003.

Mont?s, in his Nov. 2003 report, noted that the SSB had much of its money tied up in non-liquid assets. As we note at the end of the article, SSB CEO attacks AMANDALA?S credibility!, also appearing on this page, the SSB?s bank balance, according to its own figures, would, perhaps, stand at about $6 million, were it not for the sale of its shares in the Belize Telecommunications Limited and the Belize Electric Company Limited earlier this year.

Most of SSB?s investments, according to its actuary, are tied up in ?housing mortgages, private sector loans, and social investments in utilities.? (Social Security still owns shares in the Belize Electricity Limited – BEL.)

On page 4 of this issue, we reproduce a statement given to us today in a handout package from SSB?s public relations officer, Rojani Perriott, detailing SSB?s investments as of July 31, 2004. The total investments now stand, according to the figures, at $239.5 million?about a third of that is deposited with the banks.

While the actuary?s advice to the SSB has been for it to ?emphasize liquid financial assets in the banking sector,? the SSB?s board approved the spending of $7 mn on an asset that it has no plans for, so far.

The National Trade Union Congress of Belize, the umbrella body for all the major trade unions in the country, today called a press conference to tell the media that it prepared to demonstrate on Saturday, to make clear its displeasure with the handling of Social Security finances.

The Belize Chamber of Commerce and Industry and the Belize Business Bureau also supported the cause of the march, and said that members were also free to join in the march if they chose to.

Beyond Saturday?s march, however, the agencies, collectively known as ?the social partners,? continue to call on the Government of Belize to permit a full-scale independent audit of the SSB.

Senator Rene Gomez, who is the chairman of the Orange Walk Branch of the Belize Workers Union, said that seven senators?who represent a majority?have endorsed the call made by the ?social partners? for a full public inquiry into Social Security.

Dylan Reneau, president of the Public Service Union, in this morning?s press briefing questioned GOB?s spending of public funds, saying that, ?The SSB has been manipulated and used as a slush fund for political gain. That begs the question what was the $1.4 billion in debt for??

He pointed out that the government has used Social Security funds to build houses, fund healthcare?specifically the NHI, which the actuary recommended should have been phased out beginning June, 2004?and poverty reduction through non-contributory pensions.

?What happened to the taxes and the foreign debts incurred?? Reneau questioned.

He also said that SSB ?had to pay arrangement and legal fees, which amounted to some $387,000,? for the $98.9 million securitization, which included over $40 million from Glenn Godfrey?s companies.

?From the little information provided,? he said, ?[we see that] Social Security Board is paying ?the lion?s share? for the securitization program.?

The SSB will be paying some $1.3 million monthly until 2010, and half that amount after 2010 until 2013, he further informed.

?The picture connotes that SSB has been recording a net loss of 4 to 5 % since 1999 on the investment portfolio covered by this securitization.?

The process of securitization has come under much scrutiny for over the past month, after SSB had to pay roughly $6 million because Glenn Godfrey?s ?group? of companies had defaulted on payments. SSB?s CEO told us on record today that the repayment, announced on Monday, August 16, was deposited into Godfrey?s own bank?the Alliance Bank, a revelation that has raised many brows.

NTUCB?s general secretary, George Frazer, pledged that the unions and private sector would work together to investigate the true status of the SSB, and ?we will leave no stones unturned in pursuing that goal.?

In another breath, however, they noted that the promise of SSB?s management to provide more detailed information last Wednesday has yet gone unmet.

As to the impetus for joining the march on Saturday, Frazer said that, ?It?s time and over time that our people stand up and demand better governance, better accountability than what?s happening in our country?our funds.?

?The time to save your country is before you lose it,? said Fuentes, using a sentence originated by the late Philip Goldson .

While the Social Security issue was the main matter of concern, the union leaders also mentioned the recent downgrades by Moody?s and Standard and Poor?s, problems with floating the $450 million bond, and the country?s debt, which, Frazer described as being ?way out of reach.?

?We are really living on the edges, so one has to look at what?s happening before one falls into the pit,? he commented.