OECS Should Harmonize Social Security Systems

by Amanda Banks, Tax-News.com, London

14 April 2010

The harmonization of National Insurance or Social Security Schemes is essential as the Caribbean region moves closer towards an OECS Economic Union, according to the head of the OECS Social Policy Unit, Darrel Montrope.

Montrope says there is tremendous value in strengthening various social protection policies and programs among OECS Member States. “It is in times of crises we really see the benefits of social protection systems. We need to strengthen our systems and put things in place even before another crisis hits,” he said.

“A common approach is an imperative. We have to implement a harmonized regional social security program because implicit to the formation of the Union is the free movement of people and labour. People would be concerned that if they have worked in an OECS Member State and were to migrate to another what would happen to their benefits accrued in the previous Member State. The idea is to ensure that they are able to ‘take’ their benefits with them,” Montrope said.

Discussing possible problems surrounding the implementation of a harmonized system, Montrope said that OECS Member States may need to harmonize retirement ages, produce a plan for dealing with non-compliance, and review the sustainability and expansion of current financial arrangements to cater for an ageing population.

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