CABINET NOTES- The Cabinet welcomed the Director and Deputy Director of the Social Security Scheme, who presented a detailed report on the Scheme’s performance over the past 15 years. From the outset, both officials voiced strong support for the Cabinet’s decision of Social Security investing in the redevelopment of the Jolly Beach Resort. They cited provisions in the Social Security Act, which establish a Social Security Fund Investment Committee responsible for managing the Scheme’s investment portfolio under the guidance of the Minister responsible—i.e., the Cabinet.

The team emphasized the clear legal framework governing the Fund:

• The Cabinet and responsible Minister retain ultimate authority over the Fund’s strategic direction and investments.
• The Investment Committee and Board provide oversight; however, Cabinet approval is required for all investment decisions, particularly following legislative amendments made in 2016.

The importance of maintaining fiduciary responsibility and safeguarding the solvency of the Fund was repeatedly underscored.

Cabinet was reminded of the Scheme’s prior financial crisis between 2010 and 2013, during which it was unable to meet pension obligations. The then administration was forced to secure a $30 million injection from the IMF to prevent collapse. In contrast, under the stewardship of Prime Minister Gaston Browne, the Scheme was stabilized and restored to solvency—even during the COVID-19 pandemic, when monthly contributions fell from EC $12 million to EC $7 million. Despite this downturn, the government kept its payments to the Scheme up to date.

As of now, the Scheme has reached a historic milestone with 47,000 active contributors, the highest in its history. This has enabled a monthly surplus of EC $2 million. However, this positive status remains fragile due to structural and demographic challenges—particularly the sharp increase in life expectancy. When pension eligibility was first set at age 60, most males did not live beyond that age. Today, many pensioners live into their 70s and 80s, drawing benefits for up to 20 years, making the current structure financially unsustainable.

Led by Prime Minister Browne, the session featured robust discussions on the financial sustainability and reform of the Social Security system, covering long-term investment strategies, demographic realities, and regional integration within the OECS. A critical point was that the current contributions-to-payout ratio is 5.9:1, whereas a ratio closer to 10:1 is necessary for long-term viability.

The meeting concluded with consensus that the session was a strategic and forward-thinking engagement, focused on securing the future of Antigua and Barbuda’s Social Security Fund through financial restructuring, real estate investments like the Jolly Beach Resort, legal oversight, and regional collaboration. The overarching goal is to ensure the system remains viable, resilient, and responsive for current and future generations.

At the conclusion, the Honourable Attorney General informed Cabinet that a formal debate on the government’s support for the Social Security Scheme’s investment in the Jolly Beach Resort will be held on Thursday, July 31, 2025, at 9:30 a.m.