National Insuarnce Funding Issues- Part 3 (click for Newsday column)

In Part 3 I say that:

"Notwithstanding the projections for the Fund to go into deficit by 2038, there is pressure on the National Insurance Board and the State to increase the current level of benefits paid National Insurance, mainly to offset inflation and the rising costs of private health care.

The proposed increases in contribution will fund these improved benefits once certain economic conditions are achieved — inflation steadily declines to 3.0 percent by 2016; the Fund achieves an IRR for the period 2008 to 2017 of average 10.5 percent and from 2018 to 2029 of average 8.25 percent; and the demographics follow the projections of the Seventh Actuarial Review.

These are major challenges to the NIB currently and they represent the challenges of being able to meet the improved benefits over the long term to 2048."