As the government prepares for the 2025 National Budget, Member of Parliament (MP) Annette Ferguson has strongly criticised the People’s Progressive Party (PPP) administration for failing to increase National Insurance Scheme (NIS) pensions for three consecutive years, 2021, 2022, and 2023. Ferguson, in a letter published today, called on the government to urgently address the issue in the upcoming budget, citing the hardships caused by the lack of adjustments to pensions during this period.
NIS has approximately 45,000 pensioners. Ferguson pointed out that while public sector salaries were increased in those years—by 8% in 2021, 7% in 2022, and 6.5% in 2023—NIS pensioners, particularly the elderly, were left without any increases, resulting in what she described as an “accumulated loss” of $92,496 for each pensioner.
“The government is currently preparing its 2025 budget, and while it is expected to be the biggest budget in history, given that it is an election year, I fear that the administration will once again prioritise electioneering efforts and vote-buying strategies over the real needs of the people,” Ferguson said.
She emphasised that this failure to increase pensions, despite the country’s booming oil revenues, amounts to a deliberate act of neglect towards the most vulnerable members of society.
Drawing attention to the pension increases that occurred under the previous Coalition Government, Ferguson highlighted the stark contrast between the approach taken by the PPP government. Under the Coalition’s leadership, NIS pensioners benefited from regular increases, with the pension rising steadily from $21,352 in 2015 to $35,000 in 2020.
“Prior to 2020, NIS pensioners were recipients of increases that were implemented without relying on oil money,” Ferguson stated, further pointing out that the most recent increase in 2024 was a meager 21.3% to $43,075—an increase of just $8,075 from the previous level in 2020.
Ferguson emphasised that this situation is not merely a matter of delayed payments but a failure to adhere to the principles set out in the National Insurance Scheme Act, Chapter 36:01, which mandates that pension adjustments be made in a timely and equitable manner. She noted that pensioners had repeatedly reached out to the government through letters and other forms of communication, yet no satisfactory explanation had been provided for the government’s failure to implement the required increases for 2021, 2022, and 2023.
In her letter, Ferguson expressed her dismay that the government has not given a plausible reason for withholding these increases. “They cannot claim that ‘fiscal space’ is an issue since Guyana is benefiting tremendously from its oil patrimony. The government’s failure to act shows a clear disregard for the well-being of its citizens, particularly the elderly who have worked hard and contributed to the system,” she said.
Ferguson also urged the government to take a long-term approach to the sustainability of the National Insurance Scheme, suggesting that an injection of funds be made into the scheme to ensure that all pensioners, both below and above the minimum pension levels, receive a reasonable monthly pension that would allow them to live with dignity.
“This issue is not the fault of the NIS or its beneficiaries, but the law has been flouted by this government, and it is crucial that they correct this injustice immediately,” Ferguson concluded, calling on the government to address the issue in the upcoming budget and provide a fair and just resolution for all NIS pensioners.
