…Ram, pensioner and three unions seek arrears of $510,300 each
(Kaieteur News) – Attorney-at-law Christopher Ram, a pensioner and three trade unions have filed a High Court application against the National Insurance Board (NIB), seeking to compel the payment of minimum old-age pensions at the rate prescribed by law and recover arrears allegedly owed since 2021.
The application for judicial review was filed on Friday by Ram, pensioner Kalicharan Heera, the Union of Agricultural and Allied Workers, the United Minibus Union and the Guyana Market Vendors Union.
The applicants are asking the court to declare that the minimum National Insurance Scheme (NIS) pension must be no less than 50% of the Public Service minimum wage, as stipulated under Regulation 4(b) of the NIS Benefit Regulations.
Attorney-at-Law, Christopher Ram
They are also seeking an order compelling the Board to pay the minimum pension at that rate, account for all outstanding payments since 2021 and settle the arrears with interest, including amounts owed to the estates of deceased pensioners.
According to the applicants, the lawful minimum pension currently stands at $51,173 monthly, but pensioners receiving the minimum benefit are being paid just $43,075, leaving a shortfall of $8,098 each month.
They estimate that individuals who have received the minimum pension throughout the period since 2021 are owed approximately $510,300 each.
Regulation 4(b) states that a pension shall “in no case” be less than 50% of the Public Service minimum wage.
The applicants contend that the NIS broadly observed this requirement until 2020, but failed to adjust the minimum pension in line with annual increases in the Public Service minimum wage from 2021 onwards.
They further argue that the Scheme has repeatedly acknowledged the 50% requirement through its website, annual reports and actuarial reports, making its continued failure to pay the prescribed rate particularly troubling.
The dispute had also reached Parliament in 2024, when Annette Ferguson, MP, tabled a motion, seconded by Juretha Fernandes, MP, calling for retroactive payments to minimum pensioners for the period 2021 to 2023. The motion was disallowed, leaving pensioners without the payments being sought.
In their statement, the applicants also pointed to the role of Finance Minister Dr. Ashni Singh, who has responsibility for the NIS and oversees the Co-operative Finance Administration, which supervises the Board.
They contend that, as the minister responsible for the regulations and the budgets that increased the Public Service minimum wage, Singh should have ensured that the minimum pension was adjusted accordingly.
The application follows a September initiative led by Ram after he said he received repeated complaints from pensioners while in the United States.
On October 1, Ram and the unions wrote the National Insurance Board demanding compliance with the statutory minimum pension and payment of arrears, giving the Board until October 9 to respond before court proceedings were initiated.
Ram had indicated that he did not expect a satisfactory response, citing his experience with the Scheme in disputed-benefit matters.
The applicants are now seeking the court’s intervention to resolve the dispute, arguing that the law establishes a clear minimum payment that cannot simply be disregarded.
They have also indicated that the Board and the Attorney General, the Government’s chief legal adviser, will be served with the proceedings.
The applicants further rely on section 34(2) of the National Insurance and Social Security Act, which provides for Parliament to make up any shortfall in the National Insurance Fund. They argue that if the Scheme cannot meet its legal obligations, the Government must make up the difference.
In their statement, the applicants urged the Board to assist the court in resolving the matter quickly and in the interests of the pensioners it serves.
The applicants are represented by attorneys-at-law Khemraj Ramjattan and Christopher Ram.
Source: Kaieteur News
