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“40 Years of Dedicated Service and Stability … Committed to Securing Future Generations” 1

SOCIAL SECURITY

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DOMINICA

2 Dominica Social Security, 2016 Annual Report


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TABLE OF CONTENTS PAGE NO.

Transmittal Letter 3

Board of Directors 4

Investment Committee 5

Corporate Information 6 - 7

Key Indicators 8

Chairman’s Review 9 - 11

Director’s Report 12 - 48

40th Anniversary Supplement 40 - 48

Index to Financial Statements 49

Auditor’s Report F1

DOMINICA SOCIAL SECURITY BOARDANNUAL REPORT

FOR ThE YEAR ENDED DECEMBER 31, 2016

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Dominica Social Security Telephone:(767)2558311•255-8312 Cnr.Hanover&HillsboroughStreets Fax: (767)4485704 P.O.Box772 Email:[email protected] ROSEAU Website:www.dss.dm CommonwealthofDominica West Indies

LETTER OF TRANSMITTAL

13th June 2017

HonourableRooseveltSkeritt,PrimeMinister&MinisterforFinanceandSocialSecurity,PrimeMinister’sOffice,Financial Centre,ROSEAU

DearHonourablePrimeMinister,

PursuanttoSection17(3)ofChapter31.01oftherevisedlawsoftheCommonwealthofDominica,IhavethepleasuretosubmittoyouthereportoftheBoardonitsactivitiestogetherwiththeAuditedFinancialStatementsfortheyearended31December2016.

Wearegrateful for the support of theGovernmentofDominicaduring thepast year and, asweproceedamidstthevariouschallengesthatconfrontus,welookforwardtogreatercollaborationintheongoingquesttoensurethecontinuedrelevanceandsustainabilityofthesystem.

Yours truly,

……………………………………Anthony JosephCHAIRMAN

_____________________________________________________________________“Dominica Social Security—A Safe Haven Against he Social Storms of Life!”

Fred Joslyn House

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Mr. Stephen IsidoreMeMber

Mr. Ericson RobinsonMeMber

Ms. Mandra FaganMeMber

Mr. Eric MarieMeMber

Mr. Gregory ShillingfordMeMber

Mr. Anthony JosephChairMan

Ms. Gloria DechausayMeMber

Mrs. Janice Jean-Jacques ThomasDireCtor

Mrs. Bernice JosephMeMber

Ms. Marie-Therese JohnsonDeputy Chairperson

BOARD OF DIRECTORS



Ms. Kimaner JulienMeMber

Mr. Collin BullyMeMber

Mr. Jeffrey BaptisteMeMber

Mr. Rooseworth MillsChairMan

INvESTMENT COMMITTEE

SOCIAL SECURITY

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hEAD OFFICE DoMiniCa soCial seCurityCnr. Hillsborough & Hanover Streets Box 772, RoseauCommonwealth of Dominica Tel: 1 767 255-8311 / 3Fax: 1 767 448-5704 E-mail [email protected]: www.dss.dm sub offiCeDominica Social Security BaystreetPortsmouthTel: 1 767 255-8350/8351Fax:1 767 445-4962E-mail [email protected]

auDitorsKPB Chartered AccountantsPedro Investments BuildingIndependence Street,P.O. Box 202,RoseauCommonwealth of DominicaTel: 1 767 448-2511 / 2

attorneyHeather Felix-Evans65 King George V StreetRoseauCommonwealth of DominicaTel: 1 767 440 0816

CORPORATE INFORMATION


MANAGEMENT


Mr. Augustus EtienneDeputy DireCtor

Mrs. JoAnn LancelotChief finanCial offiCer (ag.)

Mr. Jefferson Jno.Baptisteinternal auDitor

Mrs. Johanna John-BertrandManager, aCtuarial serviCes & Mis

Ms. Celia M. Delauney legal offiCer

Mr. Bernard HenryManager, CoMplianCe

Mr. Patrick FontaineaDMinistrator, CoMputer systeMs (ag)

Mr. Blaize JonesaDMinistrator, benefits

Ms. Eslyne RynerhuMan resourCe & aDMinistration offiCer

Mrs. Melicia Etienne-AnatolaDMinistrator, finanCe & investMents (ag)

Mrs. Julietta Joseph-BaptisteoffiCer-in-Charge, Contributions

BOARD OF DIRECTORS

Mr. Anthony JosephChairperson

Ms. Marie-Therese JohnsonDeputy Chairperson


Mr. Ericson RobinsonMeMber

Mr. Stephen IsidoreMeMber

Mrs. Bernice JosephMeMber

Mr. Gregory ShillingfordMeMber

Ms. Mandra FaganMeMber

Mr. Eric MarieMeMber

Ms. Gloria DechausayMeMber

INvESTMENT COMMITTEE

Mr. Rooseworth Mills ChairMan

Mr. Jeffrey BaptisteMeMber

Mr. Collin BullyMeMber


Ms. Kimaner JulienMeMber

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KEY INDICATORS

% 2016 2015 2014 Change

2016-2015 Short term Awards & Grants 9,923 8,460 10,190 17.3 Long-term Beneficiaries 6,553 6,389 6,129 2.6 New Claims for Processing 12,166 10,190 12,363 19.4 New Claims Processed 11,858 9,694 12,217 22.3 New Claims Paid 10,872 9,431 11,089 15.3

%

2016 2015 2014 Change 2016-2015

Ac�ve Insured Persons 23,332 22,197 22,428 5.11 Ac�ve Employer Popula�on 1,879 1,873 1,934 0.32

%

2016 2015 2014 Change 2016-2015

Total Income 69.282 68.644 64.599 0.93 Contribu�on Income ($M) 53.472 51.713 47.596 3.40 Investment Por�olio 358.558 356.623 350.270 0.54 Net Investment Income ($M) 15.321 16.370 16.469 -6.41 Net Yield of Portfolio 4.21% 4.60% 4.71% -8.55 Administra�ve Cost ($M) 5.708 5.920 5.331 -3.58 Admin Cost as a % of Contribu�on Income 10.7% 11% 11.20% -6.39

Admin Cost as a % of Total Income 8.24% 8.60% 8.30% -4.23

Total Assets ($M) 391.259 384.040 376.108 1.88 Total Fund Reserves ($M) 388.925 381.351 373.773 1.99

Key Performance Ra�os 2016 2015 2014 Profit Margin 4.81% 10.80% 9.50% Funding Ra�o 5.93 6.23 6.39 Return on Assets 0.85% 1.94% 1.62%


ChAIRMAN’S REPORTI am delighted to present this report on the activities,operations and performance of the Dominica Social Security for the 2016 Financial Year—during whichthe institution marked the 40th Anniversary of itsestablishment.Mindfuloftheinstitution’sexcellenttrackrecordof servicedelivery throughout its existence, thecelebrationwasfittinglyobservedundertheTheme“40 Years of Dedicated Service and Stability … Committed to Securing Future Generations”. Consequently, theparticular commemorative activities undertaken wereallintendedtohighlightthetremendousimpactthattheDominica Social Security (DSS) has had, and continues tohave,onthesocio-economiclandscapeofDominica.

Indeed, by themere fulfillment of itsRaisond’être, i.e.thepaymentofvariouscashbenefitstoinsuredpersonsand their dependents on the occurrence of specificcontingencies, the institution has contributed directlyto the socio-economic well-being of thousands ofDominicans—formanyofwhomaSocialSecurityAgePensionhasproventobetheirSavingGrace(onlysourceof income) in retirement. For this reason, andby theirown volition, these pensioners tend to represent the best sellingpoint for theSocialSecurity system, sincethey speak with such pride and appreciation about

the difference that the Social Security has made in their lives—affording themsomedegreeof dignity andindependenceintheirtwilightyears.

Further,andbymeansofthevariousinvestmentinitiativesthattheinstitutionhasundertaken,overtheyears,ithasbeenabletocontributetoanimprovementinthequalityoflifeoftheDominicanpeopleand,thereby,fosteredtherealizationofsocialcohesiveness.Forexample,throughits financing of certain infrastructural projects in thecountry, it has contributed to improving the aestheticsofthephysicalenvironmentaswellasinincreasingthehousingstockon the island.Bymeansof itsprovisionoffinancing for thepursuitof tertiary leveleducation, ithasassistedinstrengtheningtheHumanResourceBaseof thecountry. Bythesametoken,and in furtheranceof its corporate social responsibility, it has facilitatedotheragencies—whichcatertothewelfareofthemorevulnerable members of our society—in the effectivefulfillmentoftheirrespectivemandates.

So,forallintentsandpurposes,theobservanceofsuchamilestone in the life of the institution was used as a moment to retrace the evolution of the Dominica Social Security—overtheyears;toacknowledgethecontributionsofthepioneersandotherswhohavefacilitatedthegrowthanddevelopment of the system as well as to reflect upon andcelebrate themanyachievementsof the institutionthroughoutitsforty(40)yearsofexistence.

The occasion was also used to recognize andacknowledgesome40Stakeholders(Employersand/orSelf-employed persons) who—either from the inception oftheinstitution40yearsago(inthecaseofemployers)or the commencement of the business relationship (inthecaseofSelf-employedpersons)—wouldhavebeenexemplary in their dealings with the institution and,therefore,hadanunblemishedrecord.Wearesatisfied,therefore, that the attainment of 40 years of providingsocial protection to the people of Dominica was, indeed, anoccasionworthyofsuchcelebration.

FINANCIAL PERFORMANCE REvIEW

As can be gleaned from the following brief analysis ofthefinancials,theperformanceoftheinstitutionwasnotunlike thatof thewiderdomesticeconomy,whichwas

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merelybeginningtoreboundfromtheimpactofTropicalStormErika,whichhaddescendeduponthecountryinAugust2015. This isborneoutbydataavailable fromthe Eastern Caribbean Central Bank (ECCB), in itsAnnual Economic and Financial Review for 2016, which indicate that theDominicaneconomyexpandedby1.5percentin2016,followingacontractionof2.5percentinthepreviousyear.Suchassessmentwasbasedonincreased activity in the construction and agriculturalsectors, coupled with subdued performances in thetourismindustryandthemanufacturingsector.

For the year under review, the Fund recorded Total Incomeof$69.282M,amereincreaseof$0.638Morjustunder1.0%whencomparedwiththepositionregisteredattheendof2015.WhileContributionsIncomereflectedanincreaseof$1.759Mor3.4%overthelevelrecordedfor 2015, Investment Income declined by $1.121Mor 6.6%. At the same time, Total Expenses grew by$4.740M or 7.7%, with Benefit Expenses ($58.094M)accountingfor88.1%ofsuchtotalexpenses.Consistentwiththetrendofpreviousyears,theLong-term(Pension)Benefits accounted for approximately 90% of TotalBenefitExpenditure.Takingalloftheforegoingrealitiesintoaccount,theFundrealizedaNetIncomepositionof$3.331Mascomparedto$7.433M,thepreviousyear—i.e.adeclineof$4.102or55.2%.

Further, and given the trend—over the last fewyears—whereby Benefit Expenditure tends to exceedContributions Income, InvestmentReturnscontinuestoassumeanincreasinglymoreimportantroleinenablingtheFundtomeetitsBenefitobligations.Atthesametime,it isquite laudablethat,over time,andevenduringtheyearcelebrating the40thAnniversaryof the institution,Management has continued to contain the cost ofadministrationwithoutadverselyaffecting thequalityofservice being delivered to its customers, both internal(itsstaff)andexternal. In fact, for2016,AdministrativeExpenses actually reflected a reduction of $0.212Mor3.6%and,atthatlevel,representedabout8.2%ofTotalIncome.

Againstthebackdropoftheseoperatingresults,aswellas theprevailingeconomicclimate, theFundremainedrelativelystable—withTotalAssetsreaching$391.259M,of which Net Investments accounted for 92.0% or$358.558M.ThelevelofTotalAssetsattheendof2016

reflectedanet increaseof$7.219Mor justabout2.0%overthecorrespondingperiodlastyear.Meanwhile,TotalReservesamountedto$388.925M,signifyinggrowthof$7.574Mor2.0%and,ofthis,86.2%or$335.254MwasattributabletotheLong-termBranch.WhiletheamountoftheLong-termReservesappearstobehighrelativetothoseoftheotherBraches,itisnecessarythatthisbeso,sincetherecontinuestobesteadygrowthinthenumberandvalueofPensionsbeingpaid,onanannualbasis;and perhaps even more critical, is the fact that the Fund is expected to be able to continuemeeting its benefitobligationswayintothelong-termfuture.

Hence, we are hopeful that—in the not-too-distantfuture—the anticipated impact of the various reform initiatives already implemented, as well as others that may be contemplated, will begin to manifest itself inthe form of higher levels of increase in the Long-termReserves, on an annual basis. That way, the long-termsustainabilityoftheFundwillbefurtherenhanced.Towards that end, I call on all stakeholders to remainabreastofemergingSocialSecuritydevelopmentsand—as necessary—to modify their attitude and behaviourin relationtoSocialSecuritysoastobetterenable thesystemtocontinuedeliveringonthepromiseofincomeprotectiontosuccessivegenerationsofDominicans.

LOOKING AhEAD

Despite themany challengeswithwhichwe arebeingconfronted, the institution is always mindful of the very noble mandate which has been entrusted to it and,thus,onewhichoughtnot tobe taken lightly. Rather,all thosewithastake in theprogrammemustbecomeand remain convinced of the role and purpose of Social Security, which is so fundamental to the social protection needs of the populace. As such, we can ill-afford—whether individually and/or collectively—to abdicateour responsibility or to waver in our commitment toeffectivelyfulfillourrespectiverolesinensuringthattheSocial Security system functions as intended and that its purposecanberealizedinthelivesofthevastmajorityofourpeople.

TheInternationalLabourOrganization(ILO)nowconsiderstheneedforsocialprotectionnotjustassomethingwhich


isavailabletothosewhoareprivilegedtoparticipatein/contributetosomenationalinsuranceorsocialsecuritysystem but rather as a Fundamental Human Right—whichshouldbeaffordedtoeveryhumanbeing.Inlightofthisemergingreality,theneedforcontinuedandevengreater collaboration among the various stakeholdergroupsisnotonlydesirablebutbecomesanimperativeifweare toachieveandmaintainanadequate levelofsocialprotectionforthepopulation. In that regard, those who have an obligation to paycontributions—i.e.asemployers,Self-employedpersonsand voluntary contributors— should play their part byensuring thatsuchcontributionsarepaidona regular,timely and consistent basis. By so doing, they willguarantee that insured persons and their dependentscanreaptheirrightfulbenefitsasandwhentheybecomedue.

In their turn, benefit recipients, particularly those inreceipt of long-term benefits, must ensure that theyreceive benefits that are rightfully due to them, in therightamountsandfortherelevantdurationandthat,overtime,theconditionsgoverningtheirentitlementtosamecontinuetoholdtrue.

Managementandstaffmustremainvigilantinensuring—asfarasispracticable—that: itcontinuestoexploreandadoptbestpractices forthecoreareasofoperations(Benefits, ComplianceandContributions)aswellasinthe areaofcorporategovernance; asmuchofalltheavailablecontributionsdueto theFundcanbecollected; theclaimantsofbenefitsreceivewhatis rightfullyduetothem—bothintermsof amountsandtiming; thecostofadministeringtheprogrammeis containedwithinacceptablelimits.

For its part, the Board will continue to facilitate and support management in its pursuit of any reasonablecourse of action, measure or strategy that may bedeemed appropriate for the effective fulfillment of theinstitution’s mandate. Thus, and in terms of matterswhichmaybe referred for itsconsideration—from timeto time—theBoardpledges to remain transparent andresponsiveinitsdeliberationsupontheseandwhatever

recommendations may be warranted in the particularcircumstances.

Bygrantingthenecessaryapprovalofrecommendationsfor investments and requests for the enactment ofdesirable legislative changes, as well as continuedinsistenceontheneedforindividualsandorganizationswho are either associated with and/or have beencontracted by the Government of Dominica to be incompliance with their social security obligations, theMinistryofFinancewill continue tocreate theenablingenvironmentforthe institutiontoeffectivelyfulfill itsroleofprudentlyadministeringtheFundinthebestinterestofcurrentandfuturegenerationsofcontributors.

So, as we forge ahead in the midst of current andemerging challenges—including the changingdemographics, the prevailing economic uncertaintiesandourcountry’svulnerabilitytonaturaldisasters—letusallrecommitourselvestoworkingcollaborativelyinordertosuccessfullyconfrontsuchchallenges.Ofnecessity,we must seek to harness all of the resources at ourdisposalwhile,atthesametime,beingreadyandwillingtoadapttothechangingrealitiesofourtimes.

In closing, Iwish—onbehalf of theBoard—to expresssinceregratitudetoallstakeholdersforthepartthattheyplayed in theachievementsof the institutionduring thereviewperiod.Letmeplaceonrecordmyappreciationto theHon.PrimeMinisterand theMinistryofFinanceand, by extension, the Government of Dominica, foritsguidanceandsupport in facilitating theworkof theBoardduring theyear. Ialsoextendspecial thanks tothemanagementandstaffoftheDSS,fortheircontinueddemonstration of commitment, dedication and loyalty to theorganization. Last,butnot least, Iofferapersonalword of thanks to the other members of the Board,membersoftheInvestmentCommitteeandotherprivatepersonsfortheirrespectivecontributions,intherelevantareas,towardstheeffectivefulfillmentoftheinstitution’smandateforyetanotheryear. Onceagain,aheartythankyoutooneandall!

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The Director and Deputy Director with four of the ten self-employed persons honored.

DIRECTOR’S REPORTDuring the year under review the Dominica SocialSecurity marked its 40th year of existence under thetheme “40 Years of Dedicated Service and Stability … Committed to Securing Future Generations”

Management is pleased with the achievements of theInstitution over the years and the success with which it

hasbeenprovidingsocialprotectionand, infact,beingthemajorpillarofthenation’sSocialProtectionSystem.

AspartoftheobservanceofthismilestoneanniversarytheInstitutionhonouredanumberofemployersandself-employed persons who, over the Institution’s existence have been exemplary in their compliance with theprovisionsoftheSocialSecurityActandRegulations.

Thus,thefollowingemployers—whowereregisteredfromthe commencement of the DSS and continue to honour theirobligations—wererecognizedfortheirunblemishedrecord:

EXEMPLARY EMPLOYERS HONOURED AT 40 Josephine Gabriel & Co. Ltd Liberty Estate Dominica Infirmary Diocese of Roseau Roseau Market Authority J. Astaphans & Co. Ltd Wesley High School J.E. Nassief St. Mary’s Credit Union Carlton A. Phillip Motors Davis Brothers & Sons Ltd. J.B. Charles & Co. Ltd. AID Bank Green’s Wholesale Convent High School D/ca Planned Parenthood Associa�on Mr. Alick Lazare Springfield Trading P.H Williams & Co. Ltd. Royal Bank of Canada Mrs. Vernon Shaw HHV Whitchurch & Co. Ltd. Miss Athene Shillingford Workshop for the Blind Dominica Employers Federa�on L. A. Dupigny & Co Malcolm Stephens & Sons Ltd. Valley Engineering Jas Garraway & Co. Tobacco Factory Inga Doctrove


Similarlywetooktheopportunitytohonourthoseamongthe self-employed contributor base, who since their

firstregistrationcontinuetopaytheircontributionsonaregular,timelyandconsistentbasis:

At yearend2016, therewasan increaseof justunder1%inTotalIncome—i.e.$69.282Moverthe$68.644Mrecordedin2015.However,NetIncomedeclinedby55%

FINANCIAL REVIEW

whencomparedtothatof2015.Themaincontributingfactors being the reduction in Investment and OtherIncome,coupledwitha9%increaseinbenefitexpenses.

INCOME

EXEMPLARY SELF-EMPLOYED PERSONS HONOURED AT 40 Vivian Alcendor Nena Joseph Heather Felix-Evans Gilbert Guye Josephine Boyd Doreen Simon Anthea Jno Bap�ste Dona Angol Janey Bellot Frankie Pond

FINANCIAL HIGHLIGHTS

INCOME STATEMENT Amount (In $Million) % Change

2016 2015 2014

2016-2015

Contribu�on Income 53.472 51.713 47.596 3.40 Investment Income 15.321 16.370 16.470 -6.41 Other Income 0.488 0.561 0.533 -13.01 Total Income 69.282 68.644 64.599 0.93 Benefits Expenses 58.094 53.290 51.007 9.01 Administra�ve Expenses

5.708 5.920 5.331 -3.58

Assets Impairment 2.150 2.000 2.150 7.50 Total Expenses 65.952 61.210 58.488 7.75 Net Income 3.331 7.433 6.111 -55.19 Investment Por�olio 358.558 356.623 350.270 0.54 Net Assets 388.925 381.351 373.773 1.99

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Totalexpensesgrewby7.7%,increasingfrom$61.211Min2015 to$65.951M. Thegrowth inBenefitexpenseswas themajorcontributing factor,accounting for101%

ofthenet increaseintotalexpenses.Meanwhile,TotalIncomewasjust$3.331Mhigherthantotalexpenditure.

EXPENSES

TOTAL EXPENSES VS TOTAL INCOME (2012-2016)

YEAR TOTAL EXPENDITURE TOTAL INCOME $M $M

2012 53.045 60.569 2013 56.002 64.181 2014 58.488 64.599 2015 61.211 68.644 2016 65.951 69.282

BENEFIT EXPENSES VS. CONTRIBUTION INCOME (2012-2016)

YEAR BENEFIT EXPENDITURE CONTRIBUTION INCOME $M $M

2012 45.644 44.949 2013 48.790 46.851 2014 51.007 47.596 2015 53.290 51.713 2016 58.094 53.472


Administrativeexpensesdeclinedagainsttotalexpensesand total income. This is indicative of Management’scontinuedeffortstoadministertheprogrammeinacost

effectivemannerwithoutcompromisingontheefficiencywithwhichbenefitsarepaid.

ADMINISTRATIVE EXPENSES VS. TOTAL EXPENSES & TOTAL INCOME (2012 – 2016)

Year Admin Expenses

Total Expenses

Admin Expenses to

Total Expenses

Total Income

Admin Expenses to

Total Income

$M $M % $M % 2012 5.202 53.045 9.8 60.568 8.6 2013 5.112 56.002 9.1 64.569 7.9 2014 5.331 58.488 9.1 64.599 8.3 2015 5.920 61.211 9.7 68.644 8.6 2016 5.708 65.951 8.7 69.282 8.2

ADMINISTRATIVE EXPENSES & ACTUARIAL LIMIT ACHIEVED (2012 – 2016)

Year ADMINISTRATIVE Expenses

BENEFITS plus CONTRIBUTIONS OF PRIOR

YEAR

ACTUARIAL LIMIT ACHIEVED

$M $M % 2012 5.202 87.771 5.9 2013 5.112 90.593 5.6 2014 5.331 95.641 5.6 2015 5.920 98.603 6.0 2016 5.708 105.003 5.4

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ASSEtS

Investment incomedeclinedby6.41%whencomparedto2015andwas,infact,thelowestrecordedin3years.Thisperformancereflectstheprevailingchallengesintheinvestmentmarketwithdeclining interest ratesand the

limitedopportunitiesforsafeinvestments.However,wewillstrive—togetherwiththeInvestmentCommittee—toseekopportunitieswhichwillhelptoimprovetheyieldontheportfolio.

RESERVE POSITION 2011 to 2016

2011 2012 2013 2014 2015 2016 $M $M $M $M $M $M

Long-Term Branch 296.729 305.217 308.698 310.124 312.021 335.254 Short-Term Branch 18.338 14.742 16.738 18.720 21.142 11.242 Employment Injury Branch

8.480 10.384 12.467 14.602 16.949 6.314

Redundancy 8.553 9.265 9.869 10.435 11.139 11.748 Revalua�on Reserve 3.176 3.697 5.259 19.892 20.100 24.367 TOTAL RESERVES 335.276 343.305 353.031 373.773 381.351 388.925

INVEStMENt PERFORMANCE


DSS INVESTMENT PORTFOLIO (2013 - 2016)

2013 2014 2015 2016

Investments Held to Maturity 240.491 240.362 240.234 237.258 Investments in Originated Loans

40.925 48.856 55.128 51.947

Investments Available for Sale 25.691 25.691 25.899 26.178 Investments in Real Property 20.729 35.362 35.362 43.175 327.836 350.271 356.623 358.558

INVESTMENT INCOME (EC$M)

2012 2013 2014 2015 2016 Loans 3.110 3.037 3.212 3.305 2.540 Deposits 6.193 6.153 6.536 5.571 4.634 Bonds 3.636 5.576 4.345 4.904 5.573 Treasury Bills 1.224 0.895 0.789 0.780 0.780 Equity 0.676 0.939 1.233 1.459 1.297 Real Estate 0.380 0.340 0.354 0.352 0.497 Total 15.219 16.940 16.469 16.371 15.321

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REGISTRATION OF INSURED PERSONS

Duringtheyearunderreview,thetotalnumberofinsuredpersonswhoregisteredwiththeDominicaSocialSecuritywas1,455,anincreaseof5.7%whencomparedtotheprevious year’s total of 1,377. The new registrationsincluded1,346employees,anincreaseof5.6%overthefigureof1,274for2015,100self-employedasagainst101in thepreviousyearandnine (9)voluntarycontributorsasagainst two (2) in2015.Therewerealso81 insuredpersonswhowere previously registered under the oldregistrationsystemwhowerereregistered–74ofthemwere employees, one (1) self-employed and 6 voluntary contributors.

As indicated in Table 1 below, 83.0% of registeredemployeeswerebelowage30.Thetrendwherebytheagegroup“20–24”registeredthelargestpercentageofnewregistrants(44.1%)continued.Whereasinthecaseofpersonswhoregisteredasself-employed,themajoritywerebetween30and54years,27.5%werebelowage30.Inthecaseofvoluntarycontributors,33.3%ofnewregistrantswerewithin the “45 – 49” age group. Thedeveloping trend is that persons opting to contributevoluntarilyareinthemoreseniorageranges.

REVIEW OF INSURANCE OPERAtIONS


Table 1: New Registrations by Age Group Totals (2016, 2015)

Note: There were 2 new voluntary contributor registrations in 2015 and 9 in 2016.

Employees Self-Employed +

Voluntary Contributors 2016 2015 2016 2015

Age Group No.

% of Total No.

% of Total No.

% of Total No.

% of Total

16 - 19 385 28.6 385 30.2 3 2.8 5 4.9 20 - 24 594 44.1 570 44.7 14 12.8 23 22.3 25 - 29 138 10.3 104 8.2 13 11.9 10 9.7 30 - 34 71 5.3 80 6.3 25 22.9 9 8.7 35 - 39 49 3.6 45 3.5 9 8.3 14 13.6 40 - 44 28 2.1 26 2.0 9 8.3 11 10.7 45 - 49 36 2.7 32 2.5 15 13.8 13 12.6 50 - 54 23 1.7 17 1.3 16 14.7 12 11.7 55 - 59 15 1.1 10 0.8 5 4.6 5 4.9 60 - 64 7 0.5 5 0.4 0 0.0 1 1.0 Total 1,346 100.0 1,274 100.0 109 100.0 103 100.0

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Table 2 andthechartwhichfollowsgiveacomparativeview of the gender breakdown of employees, self-employed persons and voluntary contributors by agegroup. As has been the case over the two previousyears, during the year under review, the total number

of females (employees,voluntarycontributorsandself-employed)whoregisteredishigherthanthenumberofmales.In2016,52.6%ofnewregistrantswerefemaleswhilein2015thefemaleshadaccountedfor51.4%.

Table 2. New Registrations by Age Group & Gender (2016, 2015)

Note: There were 2 new voluntary contributors in 2015 and 9 in 2016.

2016 2015

Employees Self-Empd. +Vol. Cont. All Insured Employees

Self- Empd. + Vol. Cont. All Insured

Age Group Males Females Males Females Males Females Males Females Males Females Males Females

15 - 19 183 202 3 0 186 202 195 190 4 1 199 191 20 - 24 267 327 6 8 273 335 248 322 14 9 262 331 25 - 29 64 74 8 5 72 79 52 52 6 4 58 56 30 - 34 30 41 14 11 44 52 43 37 6 3 49 40 35 - 39 25 24 7 2 32 26 24 21 7 7 31 28 40 - 44 17 11 3 6 20 17 18 8 6 5 24 13 45 - 49 14 22 12 3 26 25 14 18 7 6 21 24 50 - 54 10 13 11 5 21 18 8 9 6 6 14 15 55 - 59 8 7 3 2 11 9 4 6 3 2 7 8 60 - 64 4 3 0 0 4 3 3 2 1 0 4 2 Total 622 724 67 42 689 766 609 665 60 43 669 708


REGISTRATION BY NATIONALITY

The percentage of non-nationals who registered in2016decreasedslightly—from16.6%in2015to16.1%in 2016, as illustrated in Table 3 and the chart below.Haitians continue to be the largest number of non-nationals registering, albeit, to a much smaller degreethis/year.In2015,theymadeup46.5%ofnon-nationalswhoregistered,whereasthisyeartheymadeup38.5%.

During the year under review, 83.9% of total newregistrants were Dominicans, 6.2% were Haitians and3.8%wereotherCARICOMnationals.

As illustrated below, 28 of the new registrants in 2016wereOECSnationalsand50%ofthemwerenationalsofAntiguaandBarbuda.Further,55.1%of theCARICOMnationals, excluding Dominica and Haiti, were OECSnationals.

New Registrations – OECS Nationals, (2016, 2015)

Table 3. New Registrations by Country of Birth (2016, 2015)

2016 2015

Country of Birth Employees

Self-Empd & Vol.

Contrib. Total Employees

Self-Empd & Vol.

Contrib. Total

Africa 5 1 6 2 0 2

Asia 10 3 13 8 2 10 CARICOM & Ass. States ( exc. Dominica & Hai�) 55 1 56 41 3 44

Dominica 1,131 90 1,221 1,070 79 1,149 Dominican Republic & Cuba 12 2 14 12 4 16

Europe 24 1 25 14 4 18 Guadeloupe & Mar�nique 9 0 9 9 0 9

Hai� 79 11 90 96 10 106

United States & Canada 11 0 11 14 1 15

Rest of World 10 0 10 8 0 8

Total 1,346 109 1,455 1,274 103 1,377

2016 2015

Employees Self-Employed Totals Employees Self-Employed Totals

An�gua & Barbuda 14 0 14 13 1 14 Grenada 3 0 3 2 0 2 St. Lucia 7 0 7 8 2 10 St. Vincent 4 0 4 3 0 3 Totals 28 0 28 26 3 29

SOCIAL SECURITY

DSS

DOMINICA


Table 4 and the accompanying chart summarize theregistrationofinsuredpersonsforthelastfiveyears.As

Table 4: New Registrations – Insured Persons by Sex (2012 – 2016)

demonstrated in the graph, there has been no steadytrendoverthatperiod.

SUMMARY OF NEW REGISTRATIONS – INSURED PERSONS

Employees Self -Employed Voluntary

Contributors All Insured

Year Males Females Males Females Males Females Males Females Total % Change 2012 583 574 46 31 629 605 1,234 -13.7 2013 550 534 34 23 584 557 1,141 -7.5 2014 719 774 36 22 755 796 1,551 35.9 2015 609 665 59 42 1 1 669 708 1,377 -11.2 2016 622 724 63 37 4 5 689 766 1,455 5.7


EMPLOYER REGISTRATIONS

Duringtheyearunderreview,therewasan increaseof13.3%inthenumberofnewemployerregistrationswhencompared with the previous year; with the “Agriculture, Hunting & Forestry”sectorshowinga100%increase—i.e.from11to22.Whiletherewere196registrationsin2015,therewere222in2016.Thesectorsrecordingthehighestnumberofregistrationswere“Other Community, Social & Personal Service Activities” – 22.5%,“Construction” -15.3 % and “Private Households” -14.0%. When compared with the registration of self-employedpersons,thesectorswiththehighestnumber

ofregistrationswere“Agriculture, Hunting & Forestry”- 35.0%,“Other Community, Social & Personal Service Activities”-21.0%and“Wholesale & Retail”-14.0%.

Overthelastfiveyears,mostnewemployerregistrationshave been within the “Other Community, Social & Personal Service Activities” and “Construction”sectors.In the case of self-employed registrations, most newregistrationshavecomefromthe“Agriculture, Hunting & Forestry”, “Other Community, Social & Personal Service Activities” and “Wholesale & Retail” sectors, withthatorderbeingmaintainedoverthelast3years.

2016 2015

No. % of Total No. % of Total Agric., Hun�ng & Forestry 22 9.9 11 5.6 Fishing 2 0.9 2 1.0 Manufacturing 4 1.8 6 3.1 Mining & Quarrying 2 0.9 0 0.0 Electricity, Gas & Water 1 0.5 1 0.5 Construc�on 34 15.3 27 13.8 Wholesale & Retail 27 12.2 27 13.8 Hotels & Restaurants 25 11.3 32 16.3 Transport, Storage & Com. 6 2.7 7 3.6 Financial Intermedia�on 5 2.3 2 1.0 Real Estate, Rent & Business 4 1.8 9 4.6 Public Admin. & Defence 0 0.0 0 0.0 Educa�on 6 2.7 3 1.5 Health & Social Work 3 1.4 1 0.5 Other Com., Social & Pers. Service Act. 50 22.5 52 26.5 Private Households 31 14.0 16 8.2 Extra-Territorial Orgs. 0 0.0 0 0.0 Not Classified 0 0.0 1 0.5 Totals 222 100.0 196 100.0

Economic Ac�vity

Table 5: New Employer Registrations (2016, 2015)

SOCIAL SECURITY

DSS

DOMINICA


Table 6: New Self-Employed Registrations (2016, 2015)

Economic Ac�vity

2016 2015

No. % of Total No. % of Total Agric., Hun�ng & Forestry 35 35.0 30 29.7 Fishing 7 7.0 4 4.0 Manufacturing 0 0.0 2 2.0 Mining & Quarrying 0 0.0 0 0.0 Electricity, Gas & Water 2 2.0 3 3.0 Construc�on 8 8.0 5 5.0 Wholesale & Retail 14 14.0 16 15.8 Hotels & Restaurants 5 5.0 6 5.9 Transport, Storage & Com. 4 4.0 3 3.0 Financial Intermedia�on 0 0.0 0 0.0 Real Estate, Rent & Business 1 1.0 4 4.0 Public Admin. & Defence 0 0.0 0 0.0 Educa�on 0 0.0 0 0.0 Health & Social Work 0 0.0 1 1.0 Other Com., Social & Pers. 21 21.0 26 25.7 Private Households 3 3.0 1 1.0 Totals 100 100.0 101 100.0


ACTIvE INSURED POPULATION

In 2016, a total of 23,332personswere active – i.e atleastonecontributionwasmadeeitherby themorontheir behalf, during the year. As illustrated in Table 7 below, this represented an increase of 5.1% over theupdated figureof22,197 for2015.This increase in theactivepopulation,thehighestsince2010,isattributedtoanincreaseby4.5%inthenumberofactiveemployees,18.6%activeself-employedpopulationand94.3%inthenumberofvoluntarycontributors.Theseincreasesmayappear small, but are considered noteworthy, as thisis thehighest for theactivepopulationandemployees

since 2010 and, in the case of self-employed persons, the highest recorded since 2007. Additionally, thenumber of active insured employed under the LocalGovernment system increased from 313 in 2015 to1,056 in 2016—an indication, perhaps, of the impact of the National Employment Programme (NEP).We note,also,thesignificantriseinthenumberofactivevoluntarycontributors, confirmation that Dominicans residingoverseas are taking advantage of the opportunity topreparefortheirretirement.

AscanbeseenfromTable 8below,thenumberofactivefemalescontinuestosurpassthenumberofactivemales.

Table 7: Active Insured Population by Employment Type (2012 – 2016)

Table 8: Total Active Insured Population (2012– 2016)

Employees Self-Employed Voluntary Contributors Total Ac�ve Popula�on

Year No. % Increase No. % Increase No. % Increase No. % Increase 2012

22,109 (1.5)

746 (8.4)

8 (27.3)

22,863 (1.8)

2013

21,664 (2.0)

710 (4.8)

7 (12.5)

22,381 (2.1)

2014

22,069 1.9

710 0.0

11 57.1

22,790 1.8

2015

21,448 (2.8)

714 0.6

35 218.2

22,197 (2.6)

2016

22,417 4.5

847 18.6

68 94.3

23,332 5.1

Ac�ve Popula�on

Year Males Females Un- registered Total 2012 10,412 10,683 1,768 22,863 2013 10,219 10,681 1,481 22,381 2014 10,182 11,117 1,491 22,790 2015 9,813 11,377 1,007 22,197 2016 10,290 11,754 1,288 23,332

SOCIAL SECURITY

DSS

DOMINICA


• Itmustbenotedthatthefiguresforactiveinsuredaresubjecttochangeasandwhentheaccountsofemployers whopaycontributionslateinrespectoftheparticularyearsareupdated.


ACTIvE EMPLOYERS

Thenumberofactiveemployersincreasedfrom1,873in2015, to 1,879 in 2016, as illustrated in Tables 9 and 10 andthechartwhichfollow.Aswasthecaselastyear,

Table 9: Active Employers by Economic Activity (2016, 2015)

theeconomicactivitieswiththehighestnumberofactiveemployers are “Other Community, Social & Personal Service Activities”, i.e.26.8%, followedby “Wholesale & Retail”with17.6%.

Table 10: New Employer Registrations vs. Active Employers (2012 – 2016)

Economic Ac�vity

Ac�ve Employers 2016 2015

No. % of Total No. % of Total Agric., Hun�ng & Forestry 98 5.2 102 5.4 Fishing 5 0.3 5 0.3 Manufacturing 41 2.2 36 1.9 Mining & Quarrying 6 0.3 6 0.3 Electricity, Gas & Water 15 0.8 18 1.0 Construc�on 165 8.8 162 8.6 Wholesale & Retail 330 17.6 330 17.6 Hotels & Restaurants 204 10.9 213 11.4 Transport, Storage & Com. 53 2.8 57 3.0 Financial Intermedia�on 52 2.8 52 2.8 Real Estate, Rent & Business 72 3.8 71 3.8 Public Admin. & Defence 63 3.4 65 3.5 Educa�on 53 2.8 52 2.8 Health & Social Work 65 3.5 64 3.4 Other Com., Social & Personal Service Act. 503 26.8 490 26.2 Private Households 149 7.9 145 7.7 Extra-Territorial Orgs. 5 0.3 5 0.3 Totals 1,879 100.0 1,873 100.0

New Registra�ons Ac�ve Employers Year No. % Change No. % Change 2012 258 -8.5 2,063 -3.7 2013 259 0.4 2,004 -2.9 2014 218 -15.8 1,976 -1.4 2015 196 -10.1 1,873 -5.2 2016 222 13.3 1,879 0.3

SOCIAL SECURITY

DSS

DOMINICA


Table11: Summary of Registration & Contribution Statistics

2016 2015 % Change New Registra�ons -Insured 1,455 1,377 5.7 Employees 1,346 1,274 5.7 Self-employed 100 101 (1.0) Voluntary Contributors 9 2 350 New Registra�ons -Employers 222 196 13.3 Ac�ve Insured 23,332 22,197 5.1 Employees 22,417 21,448 4.5 Self-employed 847 714 18.6 Voluntary Contributors 68 35 94.3 Ac�ve employers 1,879 1,873 0.3

• Note:Thefiguresforactiveinsuredaresubjecttochangeasandwhentheaccountsofemployerswhopay contributionslateinrespectoftheparticularyearsareupdated


BENEFItS

LONG TERM BENEFIT BRANCh

InkeepingwiththeLegislativechangeswhichcameintoeffectin2012,thepensionableageincreasedto62yearsand6months, effective January 2016. The number ofAgepensioners increasedfrom4,805 in2015to4,965in2016,an increaseof3.3%,as illustrated inTable 12 below.

2016 was a very good year for pensioners as therewas the triennial inflationary increase as well as two subsequent increases in theminimumweeklypension.Effective February 29, all pensions which were inpaymentatDecember2014wereincreasedby1%,andtheminimumweeklypensionforAgeandInvaliditywas

increased to $50. The minimum weekly Age pensionwasfurtherincreasedto$75,effectiveSeptember1.ThelatterwasinkeepingwiththedecisionoftheGovernmentof Dominica to increase the non-contributory pensionpaid by the Government to persons 70 and above to$300amonth.

Aswouldbeexpected, therewere implications for thebenefit expenditure which increased by 10.2% from$41.744Min2015to46.009Mintheyearunderreview.The expenditure on Age pensions was 89.5% of theexpenditureoftheLongTermBenefitbranchand79.2%oftotalbenefitexpenditure.Therewasalsoasignificantincrease,i.e.9.7%,intheaverageweeklypension.

Table 12: Age Pension (2012 -2016)

Thetableandchartbelowhighlighttheagedistributionofpersons inreceiptofagepensionduring2016.Thepercentageofpensionersage70yearsandabove,wentfrom47.8%in2015,to48.1%in2016.Althoughtotalmale

pensionersoutnumbertotalfemalepensioners,mostofthepensionersaboveage90werefemale.Infact,duringtheyearunderreview,74.1%ofthepensionersoverage90werefemales.

Table 13: Age Pensioners by Age Group & Gender, 2016

Year No. in

Payment % Change Benefit Amount % Change

Average Weekly Pension % Change

2012 4,434 2.3 35.690 4.9 157.05 2.6 2013 4,578 3.2 37.664 5.5 162.58 3.5 2014 4,695 2.6 39.875 5.9 165.69 1.9 2015 4,805 2.3 41.744 4.7 169.26 2.2 2016 4,965 3.3 46.009 10.2 185.67 9.7

Age Males Females Total % of Total 60 - 64 648 543 1,191 24.0 65 - 69 695 684 1,379 27.8 70 - 74 520 445 965 19.4 75 - 79 392 355 747 15.0 80 - 84 193 245 438 8.8 85 - 89 79 108 187 3.8 90 - 94 14 32 46 0.9 95+ 1 11 12 0.2 Totals 2,542 2,423 4,965 100.0

SOCIAL SECURITY

DSS

DOMINICA


ThecostofInvalidityPensionsdecreasedby9.9%,from$1.349Min2015to$1.215Min2016,whilethenumberofpensionersremainedthesameaslastyear,i.e155.

ThecostofSurvivorsPensionsincreasedby3.6%,from$3.241M in 2015 to $3.359M in 2016. The number of

persons in receipt of Survivors pension went from 1,005 in2015to1,002in2016,decreasingby0.3%.

The following table and chart depict the number ofpensions inpayment andgrantspaid,bybenefit type,overthelastfiveyears.

Table 14: Summary of Long Term Benefits (2012 – 2016)

Long Term Benefits

Year

Pensions Grants Age Invalidity Survivors Age Invalidity Survivors Funeral

2012 4,435 159 864 146 4 4 222 2013 4,578 149 877 178 0 8 269 2014 4,695 150 921 109 1 6 247 2015 4,805 155 1,005 124 6 12 284 2016 4965 155 1,002 112 2 15 302


TheInstitutioncontinuedtohonouritsobligationsunderthe CARICOM Agreement on Social Security (CASS).During the year 2016, an amount of $119,223.33 waspaid out to 46 persons in respect of both Age andSurvivorspensions.

Thetablebelowshowsthenumberofclaimsinpaymentbycategory(BenefitType):

CLAIMS UNDER tHE CARICOM AGREEMENt ON SOCIAL SECURItY

BENEFIT TYPE NEW CLAIMS PENSIONS IN PAYMENT

2016 2016 2015

Age Pension 4 41 38

Survivors Pension 0 5 5

4 46 43

SOCIAL SECURITY

DSS

DOMINICA


ThetablebelowgivesanindicationoftheSisterCARICOMCountrieswhereclaimantshadalsobeencovered:

Inadditiontotheabove,therehavebeen8claimants—paidbyDSS—whohadalsocontributedtoatleasttwootherCARICOMSocialSecuritysystemsvis:

St.Lucia&Barbados 2Antigua&Monserrat 1Antigua&Trinidad 1Jamaica&St.Lucia 1Barbados&St.Kitts 1Grenada&Trinidad 1Guyana,Montserrat,St.Kitts,St.Lucia 1

Thus,itcantrulybesaidthattheCARICOMAgreementonSocialSecurity(CASS)continuestofulfilitsintendedpurpose since some of the beneficiaries, despite theirparticipationinthelabourforceofanumberofCARICOMcountries, would otherwise not have had entitlement to apensionhad itnotbeen for theexistenceof thesaidCASS.

EMPLOYMENT INJURY BENEFITS

The downward trend in the number of Injury Benefitawards continued, as we saw the number of awardsdroppingfrom94in2015to77in2016,adecreaseby18.1%.Mostoftheinjurycaseswerefromthe“Wholesale and Retail”, “Electricity, Gas and Water” and “Hotels and Restaurants”sectors.ThenumberofDisablementpensions in payment also decreased—from 26 in 2015 to 25in2016whilethenumberofDeathpensionssimilarlydecreased from 10 to 9. This represented a 3.8%decrease in Disablement pensions and a decrease of10.0%inthenumberofDeathpensionsrespectively.

BENEFIT TYPE COUNTRY NO OF CLAIMANTS

Age Pension: An�gua 19

Barbados 5

St. Lucia 4

St. Ki�s 3

St. Vincent 3

Trinidad & Tobago 3

Bahamas 2

Grenada 1

Guyana 1

Jamaica 1

BENEFIT TYPE COUNTRY NO OF CLAIMANTS

Survivors Pension An�gua 3

St. Ki�s 2

St. Vincent 2


Table 15: Injury Benefit by Economic Activity (2016, 2015)

ShORT TERM BENEFITS

ThenumberofSicknessBenefitawardstookasignificantturn upwards, such increase being attributed to yetanother epidemic—the Zika virus. Awards during 2016increasedby19.0%,from7,887in2015to9,389in2016.Similarly,theexpenditureforSicknessbenefitincreasedby8.6%,from4.720Min2015to5.125Mduringtheyearunderreview.

On the other hand, there were decreases in theexpenditure on Maternity Allowances and Maternity Grantswhichwereawardedin2016.ThecostofMaternityAllowancedecreasedby2.6%from$0.939Min2015to$0.915Min2016,whileMaternityGrantexpenditurewentfrom$0.134Mto$0.121M,adecreaseof9.7%.

2016 2015 Economic Ac�vity Males Females Totals Males Females Totals

Agric., Hun�ng & Forestry 2 0 2 1 0 1 Fishing 0 0 0 0 0 0 Mining & Quarrying 4 0 4 1 0 1 Manufacturing 2 0 2 5 0 5 Electricity, Gas & Water 10 0 10 3 0 3 Construc�on 8 0 8 12 0 12 Wholesale & Retail 13 0 13 12 5 17 Hotels & Restaurants 10 4 14 11 5 16 Transport, Storage & Comm. 5 0 5 4 2 6 Financial Intermedia�on 0 0 0 0 0 0 Real Estate, Rent & Business 1 0 1 2 0 2 Public Admin. & Defence 3 3 6 10 11 21 Educa�on 5 0 5 0 0 0 Health & Social Work 0 0 0 0 2 2 Other Comm., Social & Personal Services Act. 6 1 7 3 5 8 Private Households 0 0 0 0 0 0 Total 69 8 77 64 30 94

SOCIAL SECURITY

DSS

DOMINICA


Table 16 below summarizes the number of awardsundertheShortTermandEmploymentInjurybranchesfor the last five years and Table 17 summarises the

benefitawardsandexpenditure forallbenefit types for2015and2016.

Table 16: Short Term and Employment Injury Benefits (2012 – 2016)

Table 17: Benefit Expenditure (2016, 2015)

Short Term Benefits Employment Injury Benefits

Year Sickness Maternity Injury

Benefit Medical

Expenses Disablement Death

Pension Allowance Grant Pension Grant 2012 7,295 321 286 134 5 33 0 14 2013 7,882 352 324 144 5 29 0 13 2014 9,709 241 240 135 11 30 0 12 2015 7,887 307 266 94 3 26 0 10 2016 9,389 296 238 77 1 25 0 9

2016 2015

Grants Allowances/

Pensions Total Grants Allowances/

Pensions Total

Benefit No Value ($M) No

Value ($M)

Amount ($M) No

Value ($M) No

Value ($M)

Amount ($M)

Sickness 9,389 5.125 5.125 7,887 4.720 4.720 Maternity 238 0.121 296 0.915 1.035 266 0.134 307 0.939 1.073 Short Term 238 0.121 9,685 6.039 6.160 266 0.134 8,194 5.658 5.792 Injury 77 0.078 0.078 94 0.087 0.087 Disablement 1 0.005 25 0.192 0.196 0 0.000 26 0.188 0.188 Death 9 0.044 0.044 10 0.056 0.056 Medical Exp. 1 0.001 0.001 3 0.001 0.001 Employment Injury 2 0.006 111 0.314 0.319 3 0.001 130 0.330 0.331 Age 112 0.164 4,965 46.009 46.173 124 0.207 4,805 41.744 41.952 Invalidity 2 0.000* 155 1.215 1.215 6 0.005 155 1.349 1.354 Survivors 15 0.004 1,002 3.359 3.364 12 0.003 1,005 3.241 3.243 Funeral 302 0.659 0.659 284 0.609 0.609 Refund of NPF 0.005 0.009 Long Term 431 0.828 6,122 50.583 51.416 426 0.824 5,965 46.334 47.166 Redundancy 0.202 0.001 Totals 671 0.954 15,918 56.935 58.097 695 0.958 14,289 52.323 53.290


2016,the40thyearoftheestablishmentoftheInstitution,saweffortscontinueattheheighteningoftheInstitution’spublicappeal. Whilesomeactivitieswereundertakenin commemoration of this milestone anniversary, it was donewith due regard for the need to contain costs—particularlyintheaftermathofTropicalStormErika.

DELINQUENCY

Byyearend2016,therewereonrecord,812delinquentemployers with a debt balance of $6.610M—i.e. an

increase of 4.0% over year end 2015 but an 11.5%reductionfromthe2014balance.Whencomparedwiththe2015position, themovement in thedebt levelwas$0.256M.Newdebtsdeterminedamountedto$1.185Mwhiletheamountofdebtsettledwas$1.022M.

ItisenvisagedthatthestrategicplacementofCommunityCompliance Officers will, in the future, assist both inminimising thegrowth indelinquencyand in improvingthelevelofcollectionsfromdelinquentemployers.

REPORt ON ADMINIStRAtION

SOCIAL SECURITY

DSS

DOMINICA


LEGAL MATTERS

For the year under review, there were many taskscompetingfortime;however,therecoveryofoutstandingcontributionswasthemostdominantactivityoccupyingthe attention of the Legal Unit, as much time andeffortwerespent in thecourts inpursuitofdelinquentemployers.

As with previous years, most court matters were heard and dealt with in the Magistrates’ Courts, both in thecivil and criminal jurisdictions. Of the one hundredandeighty-five (185)matters scheduled tobeheard intheMagistrates’Courts,seventy (70)weresuccessfullydisposedof,whileunavoidableadjournmentsaccountedforthebalance.

Amongthetotalmattersdealtwith,were76newmatterswhichwerefiledduringthecourseof2016.AsummaryofthenewmattersfiledisillustratedinTable 1,below:

Itisnoteworthythat,althoughatotalofonehundredandthirty-four(134)“lettersbeforeaction”wereissued,onlythirty-eight(38))ofthose,thusfar,haveresultedincourtaction.

A comparison with the previous 4 years reveals a downward trend in thenumberof newmatters filed intheMagistrates’Courts.ThisisillustratedbelowinTable 2.Thismaybeattributabletoanenhancedcompliancefunction.

In addition to the summary matters filed, as outlinedabove, five (5) newHighCourt civil suits, all related todebt recovery,were filed, and judgmentwas obtainedinall.

The Legal Unit is committed to working closely withall departments to ensure that the Institution remains sustainableandthatwecontinuetooperateonfirmlegalfooting.

TABLE 1: NEW MATTERS FILED IN MAGISTRATES’ COURTS IN 2016

SUMMONS (CIVIL) 27

COMPLAINTS (CRIMINAL) 11

JUDGMENT DEBTOR SUMMONS 21

COMMITAL WARRANTS 17

TOTAL 76

TABLE 2

COMPARISON OF NEW PROCEEDINGS FILED IN THE MAGISTRATES’ COURTS 2012 – 2016

YEAR SUMMONS (CIVIL) COMPLAINTS (CRIMINAL) TOTAL 2012 95 14 109 2013 63 9 72 2014 51 10 61 2015 43 5 48 2016 27 11 38


hUMAN RESOURCES

Duringtheyear,thenumberofstaffmembersremainedstable at 48 and we continued to serve the needs ofourvariousstakeholdersefficiently.Wealsoutilizedtheservices of two interns from the National EmploymentProgramme (NEP) to assist in areas where additionalhandswererequired.

Selected members of Staff and the Board wereexposed to training opportunities aimed at developingcapacityandkeepingabreastwithemergingtrendsanddevelopmentsintherespectiveareasofSocialSecurity.

The following were among the training areas in whichDSSofficersparticipated:

• InvestmentSymposium• OECSValidationWorkshopontheFree MovementofPersonsRegime

• CARICOMAgreementonSocialSecurity• ECHMBMortgageUnderwritingProgramme• CARICOMHeadsofSocialSecurity• HumanResourceManagementConference• ISSAWorkshoponServiceQuality• AtlanticConnectionEconomicandFinancial Conference• Inter-AmericanConferenceonSocialSecurity Economic&FinancialConference• AnnualRegionalLawConference• WorldSocialSecurityForum

DSS continues to be an employer of choice—withnegative staff turnover. The Board and Managementare appreciative of their loyalty and contribution to thedevelopmentoftheInstitutionand,therefore,recognizeand celebrate their service. Consequently, during theyear we recognized the following employeeswho hadattained milestone anniversaries:

MILESTONES

HONOUREES

25 Years Florann David—Compliance Officer Jason Toulon—Compliance Officer

20 Years Ronald Toulon—Compliance Officer

10 Years

Blaize Jones—Administrator Benefits Cleveland Hill—Customer Service Representa�ve JoAnn Lancelot—Chief Financial Officer (Ag.) Kamasha Lloyd—Administra�ve Assistant, Director’s Office Naarah Joseph—Customer Service Representa�ve

SOCIAL SECURITY

DSS

DOMINICA


CORPORATE SOCIAL RESPONSIBILITY

Asaresponsiblecorporatecitizen,theDominicaSocialSecurity made financial contributions to the followingorganizations/Institutions:

• TheEducationTrustFund• CALLSatPortsmouth• GrottoHomefortheHomeless• DominicaInfirmary• MahautSeniorCitizensHome• HouseofHopeatDelices• St.Jerome’sMinistryatGrandBay• DominicaAssociationofPersonswithDisabilities• NorthernDistrictHomefortheAged• CancerPatients/DominicaCancerSociety• Chances

The above-named institutions/organizations—whosework complements the efforts of the Dominica SocialSecurity in catering to the needs of our stakeholders,especiallythemorevulnerable—havebeenbeneficiariesof our support on an annual basis, aswe continue todevote some funds fromour administrationbudget fordonationstowardscharitablecauses.

In addition, we sponsored prizes for graduations andprize-giving ceremonies for a number of educationalinstitutions—thus celebrating the accomplishments oftheyoungerones.

Wealso took theopportunityof theobservanceof the40th anniversary of the Institution to honour a retired employee, Miss Janet Joseph, who served from the earliestyearsoftheInstitutionandhadgivenexemplaryserviceduringhertenure.

LOOKING AhEAD

Itisourdesiretocontinueeffortsateducatingthepublicon the role and functions of the Dominica Social Security asthiswillassisttheInstitutioninfulfillingitsmandateandmakeiteasiertoachieveincreasedcompliance.

Compliance surveillance will be brought closer to therespective areas, as we seek to engage an increased

numberofCommunityComplianceOfficerswhoresideinkeycollectionareasonthe Island. Thiswill facilitateclosermonitoringofemploymentactivitiesandredoundinimprovedcontributioncollections.

Activities aimed at covering a greater proportion ofthe population will continue as our education efforts will target youngpeople at theSchool level aswell aspersonsinnon-formaleducationprogrammes.

We will continue to strive for prompt implementation of the recommendations emanating from the ActuarialReviewwhichareaimedatensuringthesustainabilityoftheFund.Surely,wemustdoallinourpowertoensureits existence for thebenefit of successive generations.In that regard, we will continue to solicit the supportof thegeneral public inmaking any changes thatmayberecommendedasandwhentheir implementation iscontemplated.

All employees of the Institution will be expected tocontinuetoserveourvariousstakeholdersefficientlyasweexecutetheInstitution’smandateandbringameasureofsocialprotectiontoallinsuredandtheirdependants.

ACKNOWLEDGEMENTS

As we close the year in which we observed the 40thanniversaryoftheInstitution,wecontinuetobepleasedwith theaccomplishmentof the Institution inbeing themajorpillarofDominica’sSocialProtectionSystemand,forourpensions—whichconstitutethemajorsourceoftheretirementincomeofourpensioners.

We say thank you to the Government of Dominica, inparticular, the Honourable PrimeMinister andMinisterof Finance, under whose portfolio the Dominica Social Security falls for supporting the Institution during theyearand forenactingnecessary legislation ina timelymanner.

The collaborative stance of the Financial Secretarycontinuestobeagreatsourceofsupportwhichservesto facilitate theworkof the Institution—and for this,wearetrulygrateful.TotheChairmanandMembersoftheBoard,forgiving


Current staff members of the DSS

directiontomanagement’seffortsandtherebyassistingusinfulfillingourmandatewithefficiency,wesaythankyou. We also acknowledge the contribution of theChairman andmembers of the Investment Committeeforassistingusinnavigatingtheinvestmentclimateand,by so doing, contributing to the maintenance of ourinvestmentincome.

To the many employers who continue to honour their obligations toSocial Security, you aremaking amajorcontribution to thesocialprotectionof youremployeesbothduringtheirworkingyearsand,especially,thereafterintheirtwilightyears—wecommendyouforrecognizingtheneedtodoso.

For thosewho have bought into themission of SocialSecurity and, thereby, making their contributions asself-employed persons and/or voluntary contributors,

we applaud your recognition of the importance ofcontributinginordertosecureyourfuture.

We recognize the members of the Student LoansCommitteeforyourcontributionintheadministrationoftheFacilitywhichenablesourstudentstoaccesstertiaryeducationandultimatelyenhancingthe Island’shumanresources.

To the members of staff of the Institution, for yourdemonstrated commitment and loyalty to the mission of SocialSecurity,weextendourcommendations!

Finally, to all those who have, over the years, played a partinchartingthedevelopmentoftheDSS—effectivelyplacingitinapositiontokeepthepromisetoitsinsuredandtocontinuedeliveringonthispromisetosuccessivegenerationsofDominicans,wethankyou,mostsincerely,foryourcontribution.

SOCIAL SECURITY

DSS

DOMINICA



The tables below indicate the persons who have ledthe Institution over the 40 years of its existence in the

LEADERSHIP tHROUGH tHE YEARScapacities of Executive Director, Chairperson and Minister.WethankthemallfortheirstewardshipoftheInstitution:

DIRECTORS PERIOD NAMES 1976 - 1987 Frederick T. Joslyn

1987 - 1992 Arthur C.B. Wa�y 1993 - 1994 St. Bernard J. Sebas�an 1995 Cecilia S. Mar�n (Ac�ng) 1995 - 2000 Hudson Savarin 2000 - 2001 Janice Jean-Jacques Thomas (Ac�ng) 2001 - 2005 Steven B. Mayers 2005 - 2006 Janice Jean-Jacques Thomas (Ac�ng) 2006 - Present Janice Jean-Jacques Thomas

CHAIRPERSONS PERIOD NAMES 1976 -1978 Bryson Louis

1979 - March 1985 Vans LeBlanc May 1985 - 1993 Clement Carty January - August 1994 Ambrose Sylvester August - December 1994 Sylvia Bertrand 1995 - 1997 Henzie Wilson 1998 - 1999 Francis Emmanuel 2000 - 2004 Lambert Lewis 2005 - May 2007 Valda F. Henry May - December 2007 Ker�st Augustus 2008 - 2010 Hubert (Mickey) Joseph 2011 - Present Anthony Joseph

MINISTERS

PERIOD NAMES & MINISTRIES

Feb. ’76 - Sep. 76 Isaiah Thomas, Minister for Home Affairs & Social Security Sep. ,76—Jun. 79 Ferdinand Parillon, Minister for Home Affairs & Housing Jul.’79 – Jul.’80 Eustace H. Francis, Minister for Home Affairs & Housing 1980 - 1985 Brian G.K. Alleyne, Minister for Home Affairs 1986 - 1989 Brian G.K. Alleyne, A�orney General & Legal Affairs 1990 - 1994 Allan Guye, Minister for Health & Social Security 1995 - 2000 Doreen Paul, Minister for Health & Social Security 2000 John Toussaint, Minister for Health & Social Security 2001 – 2005 Herbert Sabaroche, Minister for Health & Social Security 2005 – 2007 John Fabien, Minister for Health & Social Security 2007 - Present Roosevelt Skerrit, Prime Minister & Minister for Finance

SOCIAL SECURITY

DSS

DOMINICA


MATERNITY GRANT

When the programme began in 1976,Maternity Grantwasestablishedat$25perconfinement.Overtheyears,

it has increased to the extent that, after 40 years, the grant is $500 per child. The table below reflects theimprovementsinthisbenefit:

BENEFIt IMPROVEMENtS tHROUGH tHE YEARS

FUNERAL GRANT

At the commencement of the programme in 1976,FuneralGrantwasestablishedat$100andwaspayableonthedeathofaninsuredperson.Overthe40years,

theamountpayableasFuneralGranthasincreasedby2,500%.Thechangesinthisbenefit,overtheyears,aredetailedinthetablehereunder:

YEAR GRANT PAYABLE YEAR GRANT PAYABLE 1976 $25 per confinement 1996 With the introduc�on of

User Fees, the en�re $500 became payable to

the Insured who was expected to pay the

applicable User Fees. 1983 $50 per confinement 2003 $500 per child, where

there are mul�ple births 1995 $500 per confinement, with

$250 paid directly to the Insured Person and $250 being

paid into the Consolidated Fund

YEAR AMOUNT OF GRANT YEAR AMOUNT OF GRANT 1976 $100 2010 $2,200 in respect of the death of an

insured; $1848 on the death of an uninsured spouse and $924 on the death of a dependent child

1983 $200 1989 $800 1991 $1200 1995 $1800

Provision for Funeral Grant in respect of the death of

an uninsured spouse $1500 and a dependent child

$750.

2013 Increased by $200 every three years. Grant became $2400 on death of insured; $2016 on death of an uninsured spouse and $1008 on the death of a dependent child

2007 $2000 on death of insured; $1680 in respect of

uninsured spouse and $840 in respect of the death of a

dependent child

2016 Increased by $200. Grant payable on the death of insured became $2600; $2184 on the death of an uninsured spouse and $1092 on the death of a dependent child.


ThechartbelowpresentsingraphicalformthegrowthintheFuneralGrantovertheyears:

MINIMUM PENSION

Commencing in 1989, aminimum pensionwas set at$25.00perweek.Hence,anyonewho,aftercomputationof theiragepension,wouldhavequalified foraweekly

pensionatanamountlessthantheestablishedminimum,wouldhavehadtheirpensionautomaticallybroughtuptotheminimum.Overtheyears,theminimumpensionhasincreasedasdepictedinthetablebelow:

YEAR

AMOUNT OF MINIMUM PENSION

2007 Minimum Pension raised from $25.00 to $35.00 per week. March 2010 Infla�onary Increase of 4.06% applied to all pensions in payment as at

December 2008, including the minimum pension; with a provision for the triennial increase of such pensions by the average rate of infla�on of the preceding 3 years. Hence new minimum of $36.40 per week.

March 2013 Triennial infla�onary increase of 1.5% applied to all pensions in payment as at December 2011, including the minimum pension. Hence, new minimum of $36.90 per week.

March 2016 All pensions that were in payment at December 2014 were increased by 1.0% and the minimum pension was set at $50.00 per week.

September 2016

Minimum pension was further increased to $75.00 per week in keeping with Government’s decision to raise the non-contributory pension payable to persons over the age of 70 to $300.00 per month.

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CONTRIBUTION CEILING

Similarly, over the years, the insurable ceiling (i.e. themaximum earnings on which contributions are paid

andon thebasisofwhichbenefitsarecalculated)hasalsobeenincreased.Thetablehereundershowssuchincreasesovertheyears.

The Dominica Social Security can be regarded as agoodCorporateCitizenthroughthevariousdonationsitcontinues tomake,aswellas the investment initiativesthatithasundertakenwithintheDominicansociety,overtheyears.

DONATIONS

For the past several years, the DSS has enabled theEducation Trust Fund to continue to carry out its mandateofassistingunderprivilegedchildrentoaccesssecondary education, through the annual donationsit has beenmaking to the said Education Trust Fund.Additionally,theHomesfortheAgedatRoseau,MahautandPortsmouth;theGrottoHomefortheHomeless,theDominicaAssociationofPersonswithDisabilities(DAPD)and CALLS of Portsmouth are regular recipients ofcontributionsfromtheDSSonanannualbasis.Further,fundshavealsobeenbudgetedannuallytoassistpersonswho required criticalmedical care overseas, usually intheFrenchTerritoriesofGuadeloupeand/orMartinique.

Additionally, over the years, donations—in the form of equipment and supplies—have been made to thePrincessMargaretHospitalwhilefundshavealsobeenallocated as annual contributions to the National HIV/AIDS Prevention Programme and, more recently, tothe Dominica Cancer Society for further assistance to personssufferingfromvarioustypesofcancer.

DSS AS A CORPORAtE CItIZEN

INvESTMENTS GEARED AT SOCIO-ECONOMIC DEvELOPMENT

The DSS has contributed significantly to the socio-economic development of Dominica through itsinvestmentswiththeGovernmentofDominica,FinancialinstitutionsandStatutoryBodiesontheisland.

hOUSINGFunds have been invested in the Agricultural Industrialand Development (AID) Bank, the former Roseau, St.Alphonsus andPortsmouthCooperativeCreditUnionsforprovidinghousingloanstocustomersandmembers.Amounts have also been invested in the GovernmentHousingLoansBoardandtheDominicaBuilding&LoansAssociationforonlendingtopublicservants/officersandmembersrespectively.

The Louisville Housing Scheme was also constructedwith funds loaned by the Dominica Social Security tothe Waterfront and Allied Workers Union (WAWU)—channeled through the Agricultural Industrial andDevelopment(AID)Bank.

Funds from the DSS, in the form of long-term fixeddeposits,werealsousedinthesettingupoftheNationalMortgage&FinancingCompanywhose initialmandatewasthefinancingofmortgages.

YEAR ANNUAL INSURABLE CEILING

YEAR ANNUAL INSURABLE CEILING

1976 $12,000 1991 $36,000 1983 $24,000 1994 $48,000 1989 $30,000 1995 $60,000

2008 $72,000


CROSS-SECtION OF PERSONS WHO SERVED At

tHE DOMINICA SOCIAL SECURItY IN 2016

STUDENT LOANThe Dominica Social Security has also impacted upon the Human Resource base of the country by makingfunding available for nationals to pursue training invarious fields. In 1990, for example,DSS introducedastudentloansprogrammewherepersonsdesirousofpursuing educational programmes in approved fieldswereprovidedwiththefundstodoso.Theprogrammecontinued until 1993 when it was felt that there were financial institutions inDominicawho, given the natureof their business, were better placed to handle suchprogrammes.Inthatregard,newamountswereplacedwith the former Roseau Cooperative Credit Union(RCCU)andadditionalamountswiththeAIDBank—forthepurposeofon-lendingtostudents.

However, in an effort to grow theLoan segment of itsInvestment Portfolio, the Institution, again in 2014,launched a re-engineered Student Loan Facility whichnowoffersstudent loans topersonswishingtopursuestudies at the tertiary level—whether on-line, locally, regionally and internationally. Funds are available forstudy at accredited Institutions at a competitive interest rateandonrepaymenttermsthatarequitefavourable.

OThER LOANSThe DSS has also provided funds, in the form of loans, for financingof somemajorprojects inDominica. Forinstance, the new Maternity and Paediatric wings ofthe Princess Margaret Hospital (PMH) were financedwith funds from the DSS. DSS funds also went intofinancingcapitalprojectsattheDeepWaterHarbouratWoodbridgeBay, theconstructionof thenewRoseau,theSt.AlphonsusandPortsmouthCreditUnionBuildingsandrenovationtotheNationalDevelopmentFoundationofDominicaBuilding. Fundswerealso invested in theSalisburyWaterProjectundertakenbyDOWASCO. Inthemorerecentpast,fundsweremadeavailabletotheGovernment of Dominica for construction of the newCalibishieandLaPlainePoliceStations.

SOCIAL SECURITY

DSS

DOMINICA


PHOtOS OF PERSONS WHO HAVE SERVED At tHE DOMINICA SOCIAL SECURItY OVER tHE YEARS

SOCIAL SECURITY

DSS

DOMINICA


SOME OF tHE COMMUNItY PROJECtS UNDERtAKEN BY tHE DOMINICA SOCIAL SECURItY OVER tHE YEARS


SOCIAL SECURITY

DSS

DOMINICA

TABLE OF CONTENTS PAGE

Auditors’ Report F1

Statement of Financial Position F2

Consolidated Income and Expenditure Account F3

Statement of Income, Expenditure and Reserve:

Long-term Benefit Branch F4

Short-term Benefit Branch F5

Employment Injury Benefit Branch F6

Redundancy Fund F7

Statement of Changes in Reserves F8

Statement of Cash Flows F9

Notes to the Financial Statements F10 - F22

DOMINICA SOCIAL SECURITY BOARDFINANCIAL STATEMENTS

FOR ThE YEAR ENDED DECEMBER 31, 2016

“40YearsofDedicatedServiceandStability…CommittedtoSecuringFutureGenerations” F1

To The Dominica Social Security Board

We have audited the financial statements of Dominica Social Security Board set out on pages 2 to 21 for the year ended December 31, 2016.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of Dominica Social Security Board as at December 31, 2016 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards and comply with the Social Security Act, Chapter 31:01 of the Revised Laws of the Commonwealth of Dominica (1990 Edition).

Roseau, DominicaJune 14, 2017

KPB CHARTERED ACCOUNTANTS Pedro Investments Building, Independence Street, P.O. Box 202, Roseau, Commonwealth of Dominica Tel. 448 2511/2 Fax 448 5201E-mail: [email protected] website: www.kpbcharteredaccountants.comPartners: Marvlyn Estrado, Orlando Allan RichardsAssociate: Kieron Pinard-Byrne

AUDITORS’ REPORT

F2 DominicaSocialSecurity,FinancialStatements:YearEndingDecember31,2016

DOMINICA SOCIAL SECURITY BOARD Statement of Financial Position As At December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Notes 2016 EC$

2015 EC$

ASSETS

Cash and cash resources 3(d) 113,287,312

120,404,262 Accounts receivable (net of Provision) 3(e) 18,088,875

18,421,041

Prepayment

607,912

420,302 Inventory

145,074

263,831

Electricity deposit

10,000

10,000 Originated loans and advances 7 51,947,145

55,128,178

Investment Securities: held to maturity 5 129,824,098

124,390,298 Investment Securities: available -for-sale 6(a) 26,178,300

25,899,120

Investment properties 4 43,174,975

35,361,968 Property and equipment 8 7,995,403

3,741,377

TOTAL ASSETS

391,259,094

384,040,377 LIABILITIES Accounts Payable and Accrued Expenses

9

2,333,652

2,688,948 TOTAL LIABILITIES 2,333,652 2,688,948 RESERVES Long-term Benefit Reserve 335,253,547 312,020,794 Short-term Benefit Reserve 11,241,763 21,141,669 Employment Injury Benefit Reserve 6,314,292 16,949,414 Redundancy Fund 11,748,272 11,139,223 Fair value reserve -available-for-sale investments 6(b) 5,467,481 5,467,481 Revaluation surplus 12 18,900,087 14,632,848 TOTAL RESERVES 388,925,442 381,351,429 TOTAL LIABILITIES AND RESERVES 391,259,094 384,040,377 The accompanying notes form an integral part of these financial statements.

THESE FINANCIAL STATEMENTS WERE APPROVED BY THE DIRECTORS ON JUNE 14, 2017 AND SIGNED ON BEHALF OF THE BOARD BY: Anthony Joseph Janice Jean-Jacques Thomas Chairman Director

SOCIAL SECURITY

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DOMINICA


DOMINICA SOCIAL SECURITY BOARD Consolidated Income and Expenditure Account For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Notes

2016 EC$

2015 EC$

Income Contributions 53,472,246 51,712,568 Other 10 15,809,688 16,931,263 69,281,934 68,643,831 Expenses Benefits Payments 58,093,628 53,290,479 Administrative and general expenses 5,707,614 5,920,355 Impairment on investments and receivables 5 2,150,000 2,000,000 65,951,242 61,210,834 NET INCOME FOR THE YEAR 3,330,692 7,432,997 TRANSFER TO RESERVE AND REDUNDANCY FUND

Long-term Benefit Reserve

(1,767,247) 1,896,220 Short-term Benefit Reserve

2,100,094 2,421,434

Employment Injury Benefit Reserve

2,364,878 2,347,423 Redundancy Fund

632,967 767,920

3,330,692 7,432,997

Net income for the year is arrived at after charging:

Depreciation

398,273 320,264 Audit fees

35,000 35,000

The accompanying notes form an integral part of these financial statements.


DOMINICA SOCIAL SECURITY BOARD Long-term Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Notes 2016 EC$

2015 EC$

Income

Contributions

42,827,698

41,207,802 Other

13,763,238

14,943,069

56,590,936

56,150,871

Expenses

Benefit payments

51,422,580

47,166,379 Administrative and general expenses

5,067,418

5,327,465

Impairment on investments and receivables

1,868,185

1,760,807

58,358,183

54,254,651 NET INCOME FOR THE YEAR - transferred to Long-term Benefit Reserve

(1,767,247)

1,896,220 LONG-TERM BENEFIT RESERVE: Balance at beginning of the year

312,020,794

310,124,574

Net income for the year (1,767,247) 1,896,220 12th actuarial recommended adjustment 13 25,000,000 - Balance at December 31, 2016 335,253,547 312,020,794

The accompanying notes form an integral part of these financial statements.

SOCIAL SECURITY

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DOMINICA


DOMINICA SOCIAL SECURITY BOARD Short-Term Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Notes 2016 EC$

2015 EC$

Income

Contributions

7,639,167

7,559,721 Other

1,090,830

1,081,802

8,729,997

8,641,523 Expenditure

Benefits payments

6,159,959

5,792,220 Administrative and general expenses

343,359

321,582


126,585

106,287 6,629,903

6,220,089

NET INCOME FOR THE YEAR - transferred to Short-term Benefit Reserve

2,100,094

2,421,434 SHORT-TERM BENEFIT RESERVE Balance at beginning of the year 21,141,669 18,720,235 Net income for the year 2,100,094 2,421,434 12th actuarial recommended adjustment 13 (12,000,000) - Balance at December 31, 2016 11,241,763 21,141,669 The accompanying notes form an integral part of these financial statements.


DOMINICA SOCIAL SECURITY BOARD Employment Injury Benefit Branch Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Notes 2016 EC$

2015 EC$

Income

Contributions

2,142,429

2,126,265 Other

908,158

885,922

3,050,587

3,012,187 Expenses

Benefits payments

308,966

331,018 Administrative and general expenses

275,263

250,840


101,430

82,906 685,709

664,764

NET INCOME FOR THE YEAR - transferred to Employment Injury Benefit Reserve

2,364,878

2,347,423 EMPLOYMENT INJURY BENEFIT RESERVE: Balance at beginning of the year 16,949,414 14,601,991 Net income for the year 2,364,878 2,347,423 12th actuarial recommended adjustment 13 (13,000,000) - Balance at December 31, 2016 6,314,292 16,949,414 The accompanying notes form an integral part of these financial statements.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Redundancy Fund Statement of Income, Expenditure and Reserve For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Note 2016

EC$

2015 EC$

Income Contributions 862,952 818,780 Other 47,462 20,470 910,414 839,250 Expenses Benefits payments 202,123 860 Administrative and general expenses 21,574 20,470 Impairment on investments and receivables 53,750 50,000 277,447 71,330 NET INCOME FOR THE YEAR - transferred to Redundancy Reserve

632,967

767,920

REDUNDANCY RESERVE: Balance at beginning of the year 11,139,223 10,434,218 Adjustment for redundancy receivable 14 (23,918) (62,915) Net income for the year 632,967 767,920 Balance at December 31, 2016 11,748,272 11,139,223 The accompanying notes form an integral part of these financial statements.


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SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Statement of Cash Flows For the Year Ended December 31, 2016 (Expressed in Eastern Caribbean Dollars)

Note

2016 EC$

2015 EC$

CASH FLOW FROM OPERATING ACTIVITIES Contributions receipts 53,472,246 51,712,568 Other income 509,277 574,044 Administrative expenses (5,309,341) (5,600,091) Benefit payments (58,093,628) (53,290,479) Impairment loss in investment (2,150,000) (2,000,000) Operating profits before changes in operating assets (11,571,446) (8,603,958) Short term funds and debtors 263,313 547,394 Accounts payable and accrued expenses (355,296) 354,030 Net cash used in operating activities (11,663,429) (7,702,534) CASH FLOW FROM INVESTING ACTIVITIES Interest received 13,506,510 14,546,187 Dividend received 1,296,641 1,458,588 Rent 497,260 352,444 Staff mortgage and staff student loans (2,143,555) (1,534,299) Loans to Statutory Bodies 7,036,190 (4,323,645) Pool of secondary mortgages - 3,849,203 Student loans (395,773) (413,563) Private bodies loans (1,315,829) - Acquisition of shares (279,180) - Purchase of equipment (385,060) (243,843) Recovery of redundancy receivable (net) (23,918) (62,915) Investment properties (7,813,007) - Acquisition of bonds (5,433,800) (4,767,594) Net cash from investing activities 4,546,479 8,860,563 Net increase in cash and cash equivalents (7,116,950) 1,158,029 Cash resources - beginning of year 120,404,262 119,246,233 Cash resources - end of year 3(d) 113,287,312 120,404,262 The accompanying notes form an integral part of these financial statements.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 1. Incorporation

The Dominica Social Security Board is a body corporate established by the Social Security Act chapter 31:01 of the Revised Laws of the Commonwealth of Dominica (1990 Edition) to administer the Social Security Fund with the objectives of providing various insurance and retirement benefits to persons insured under the Act.

2. Adoption of Revised International Financial Reporting Standards

The Dominica Social Security Board has adopted the revised standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) of the IASB that are relevant to its operations. The adoption of these revised standards and interpretations has resulted in changes to the organization’s accounting policies in the following areas:

Financial Instruments: Disclosure and Presentation (IAS 32) Financial Instruments: Recognition and Measurement (IAS 39)

IAS 32, Financial Instruments: Disclosure and Presentation

The impact of this standard has been to expand the disclosures provided in these financial statements in relation to the financial assets of the Fund.

IAS 39, Financial Instruments: Recognition and Measurement

IAS 39 requires that financial assets be valued at fair market value such that the carrying amount of the asset is reduced through the use of provision. Subsequent recoveries are credited to the particular provision in the Statement of Income and Expenditure.

The Dominica Social Security Financial Regulations does not allow for the write off of amounts receivable on the basis that all sums due to the Board shall be recoverable . Thus, an impairment reserve had been set up to adjust for additional impairment losses or recoveries of amounts previously deemed uncollectible.

The Dominica Social Security Board discontinued the treatment of impairment losses or recoveries as described in the preceding paragraph and accordingly allocated the impairment balance to the Reserves by way of a prior period adjustment.

Impairment losses are now being treated as directed by IAS 39. The new IFRS9 Financial Instruments will replace the older standard IAS39 in January 2018.

SOCIAL SECURITY

DSS

DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 3. Summary of Significant Accounting Policies The principal accounting policies applied in the preparation of these financial

statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

a. Basis of Accounting

These financial statements are prepared in accordance with International Financial Reporting Standards on the basis of the historical cost convention and the Social Security (Financial and Accounting) Regulations in force.

The preparation of financial statements in conformity with International Financial Reporting Standards requires management to use accounting estimates and to exercise its judgment in the process of applying the organization s accounting policies.

b. Actuarial Review

Triennial actuarial reviews are performed to assist the Board in assessing the financial condition of the fund and the adequacy or otherwise of contributions to support benefits.

c. Property and Equipment

Land and building which comprise the Funds offices are shown at fair value based on a valuation by an independent valuer in June 2017. Increases in carrying amount arising from the revaluation of land and buildings are reflected in revaluation surplus in reserves. Land is not depreciated.

All other depreciable assets are recorded at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly related to the acquisition of the items. Depreciation is calculated on a straight line basis so as to write off their costs over their estimated useful lives as follows:

Buildings 40 years Furniture & Fittings 5 - 10 years Computer equipment/systems 3 - 10 years Computer software 3 - 10 years Motor vehicles 5 years

The assets residual value and useful lives are reviewed and adjusted if appropriate at each balance sheet date. Gains or losses arising from the disposal or retirement of an item are determined as the difference between the sales proceeds and the carrying amount of the asset and are recognized in the Statement of Income and Expenditure.

All repairs and maintenance are charged to the statement of income and expenditure during the financial period in which they are incurred.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 3. Summary of Significant Accounting Policies cont’d

d. Cash and Cash Resources Cash and cash resources are carried on the balance sheet at cost. For the purpose of the cash flow statement, cash and cash resources comprise cash on hand and at bank and deposits held on call with banks and/or insurance companies. 2016

EC$ 2015 EC$

Cash on hand and at bank 5,853,484 4,560,434 Fixed deposits ( note 5(i) ) 107,433,828 115,843,828 113,287,312 120,404,262

e.

Accounts Receivable

A provision for non-collectable receivables is established when there is objective evidence that the institution will not be able to collect all amounts due according to the original terms of the receivable.

The amount of such provision is recognized in the statement of income and expenditure and represents the amount in respect of which the institution may not be able to enforce collection, legally. Thus, the provision made in respect of the current and previous years are reflected hereunder:

2016 EC$

2015 EC$

Contribution: Government 1,415,002 1,356,175

Contribution: Non-Government 9,122,573 8,995,888 Interest and investment income 10,838,770 11,353,965 Dominica Unit Trust Corporation 1,834,208 1,834,208 Staff vehicle loans and advances 1,244,708 1,247,191

24,455,261 24,787,427 Provision for impairment on

contributions

(1,567,280)

(1,567,280) Provision for impairment on EFPA’s (2,770,972) (2,770,972) Provision for impairment on DUTC (193,926) (193,926) Provision for impairment on DUTC (1,834,208) (1,834,208) (6,366,386) (6,366,386) Total (net of provisions) 18,088,875 18,421,041

SOCIAL SECURITY

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DOMINICA


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 3. Summary of Significant Accounting Policies cont’d f. Financial Assets The fund classifies its financial assets into the following categories: Originated loans and advances

Held to maturity investments Available for sale financial investments Management determines the classification of such investments at initial recognition and their designation is reevaluated at every subsequent reporting date.

Originated Loans and Advances Originated loans and advances are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market. They arise when the fund advances cash to borrowers with no intention of trading the receivable.

Held-to-Maturity Investments Held-to-Maturity investments are non-derivative financial assets with fixed or

determinable payments and fixed maturities that management has the positive intent and ability to hold to maturity. Should management decide to sell other than an insignificant amount of such Held-to-Maturity investments, the entire category would be tainted and therefore, be classified as ‘Available for Sale’.

Available for Sale Investments Available for Sale Investments are those intended to be held for an indefinite

period of time, which may be sold in response to liquidity needs and/or changes in interest rates, exchange rates or equity prices.

The purchase and sale of financial assets ‘held-to-maturity’ and ‘available for sale’ are recognized on the trade date, i.e. the date on which the organization commits to purchase or sell the asset.

Financial Assets are initially recognized at fair value plus transaction cost. Such assets are unrecognized when rights to receive cash flows from them have expired or when the organization has substantially transferred all risks and rewards of ownership.

‘Available-for-Sale’ assets are subsequently carried at fair value while Originated Loans and Advances and held-to-maturity investments are carried at their amortized cost using the effective interest rate method.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 3. Summary of Significant Accounting Policies cont’d

f. Financial Assets cont’d

Gains and losses arising from changes in fair value of ‘available for sale’ financial assets are included in the statement of income and expenditure in the period in which they arise.

The fair values of instruments quoted in active markets are based on current bid prices. If the market for the financial asset is not active, the organization establishes fair value by using available valuation techniques including the use of arms length transactions, discounted cash flows and other valuation techniques commonly used by market participants.

g. Impairment of Financial Assets

At each balance sheet date, the organization assesses whether there is objective evidence that a financial asset or group of financial assets is impaired.

A financial asset or group of financial assets is impaired if there is objective evidence that the loss has occurred after the initial recognition of the asset and has an impact on the ability of management to reliably estimate future cash flows from the financial asset or group of assets. The organization assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant. Impairment loss is recognized if there is objective evidence that impairment loss on held-to maturity investments carried at amortized cost has been incurred or that the organization will not be able to collect all amounts due according to the original contractual terms of the loans. The amount of the loss is measured as the difference between the carrying amount of the asset and the recoverable amount, being the present value of the estimated future cash flows discounted at the original effective rate of the financial asset. The carrying amount of the asset is reduced through the use of the provision for loan impairment with subsequent recoveries being credited to such provision in the statement of income and expenditure.

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DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016

3. Summary of Significant Accounting Policies cont’d

g. Impairment of Financial Assets cont’d The methodology and assumptions used for estimating future cash flows are reviewed regularly by the organization in order to reduce any differences between loss estimates and actual loss experience.

At each balance sheet date, the organization assesses whether there is objective evidence financial assets carried at fair value is impaired. Where there is a significant or prolonged decline in the fair value of the security below its cost, management determines whether the assets are impaired.

In that regard, management determined that investments in DUTC, of principal and interest on fixed deposits with British American Insurance Company and CLICO as well as amounts receivable from private sector delinquent employers are impaired, hence the provisioning in relation thereto.

h. Investment in Real Estate

Investment properties consists primarily of lands previously received in exchange for past due contributions and buildings being held for long-term rental yield and/or capital appreciation. Such properties are being treated as long term investments. Some of the lands have been revalued (see Note 12) with others carried at cost.

Land and buildings are being leased for periods of between 3 and 15 years with an option to renew for further periods not exceeding the original term of the respective lease, at the expiration of each lease term.

4. Investment Properties

2016 EC$

2015 EC$

Land 31,834,902 31,523,275 Land and buildings 11,015,040 3,513,660 Land (with construction plans) 325,033 325,033

43,174,975 35,361,968


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 5. Investment Securities - Held to Maturity (Cash & Non cash)

2016 EC$

2015 EC$

(i) Cash Fixed Deposits British American Insurance Company

5,000,000

5,000,000

Less: provision for impairment (5,000,000) (5,000,000) Colonial Life Insurance Company 9,000,000 9,000,000 Less: provision for impairment (9,000,000) (6,850,000)

NBD Mortgage Receipts Call Account

43,645,165

48,639,838

British American Insurance Company - Anguilla

1,500,000

1,500,000

Less provision for impairment (1,500,000) (1,500,000) National Mortgage & Financing Co. 3,000,000 3,000,000 NBD-DOMLEC Commercial Paper 15,567,099 16,998,834

NBD Fixed Deposit 45,000,000 45,000,000 Fixed Deposit re Lease 221,564 55,156

Total Investment Held-to-Maturity - Cash 107,433,828 115,843,828

(ii) Non Cash

Notes and Bonds Government of Dominica Bonds 104,882,202 104,882,202

Government of St. Lucia 10,433,800 5,000,000 Government of Barbados 2,552,996 2,552,996

117,868,998 112,435,198

Treasury Bills - Government of Dominica

11,955,100

11,955,100

Total Notes, Bond and Treasury Bills 129,824,098 124,390,298

Total Investment Held to Maturity-non Cash

129,824,098

124,390,298

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5. Investment Securities cont’d Consequent upon Government’s debt restructuring exercise, the interest rate on

existing government Bonds has been reduced to 3.5% while the tenure of such bonds is now 30 years. New Government bonds interest rate is 6.99% and 7% for 5 years. The effective interest rates and terms on investments held to maturity varies as follows:.

Fixed Deposits: between 4% and 9.5% with maximum maturities of 3 years. Notes & Bonds: between 3.5% for 30 years, 6.99% for 5 years and 7.5% for 8 years Treasury Bills: 6.5% with maturities of 90 days.

As at December 31, 2016, the investments with certain regional insurance companies were as follows:

Colonial Life Insurance Company Limited (CLICO) EC$9,000,000. Of this amount EC$2,000,000 matured on July 18, 2009, $3,000,000 matured on November 16, 2010. The other investment matured on April 28, 2011. During the year, CLICO met none of their obligations in respect of interest on principal due. A provision of $10,199,113 representing $9,000,000 of the investment and $1,199,113 interest receivable has been made in these financial statements. During the prior years CLICO Judicial Manager indicated that plans to restructure the company were being considered. Notwithstanding they failed to meet their obligations.

British American Insurance Company Limited (BAICO) - Dominica Branch EC$5,000,000: The maturity date for those investments was March 23, 2010. Past due interest receivables of EC$1,068,750 as at December 31, 2009 has been provided for in full. A provision of $5,370,764 has been made representing $5,000,000 the principal amount of the investment and $370,764 of interest receivable.

BAICO - Anguilla Branch EC$1,500,000: The maturity date for that investment was November 11, 2009. Past due interest receivable was EC$132,346 as at December 31. 2009. Both the principal amount and interest receivable (EC$1,632,346) were provided for in full.

BAICO is under Judicial Management. The Dominica Social Security Board has received no indication of intention to settle amounts due from the Judicial Manager.

Investment EC$

Provision

EC$

Interest Receivable

EC$

Provision

EC$

CLICO 9,000,000 9,000,000 1,199,113 1,199,113 BAICO 5,000,000 5,000,000 1,439,514 1,439,514 BAICO Anguilla 1,500,000 1,500,000 132,346 132,346 15,500,000 15,500,000 2,770,973 2,770,973



6(a) Investment Securities: available-for-sale

2016 EC$

2015 EC$

Local AID Bank Ordinary Shares 5,000,000 5,000,000 NBD Ordinary Shares 2,282,030 2,002,850 DOMLEC Ordinary Shares (listed) see note 6(b) 8,542,215 8,542,215 DUTC Equity 1,000,000 1,000,000 Less provision for diminution of DUTC shares (825,000) (825,000) DUTC Growth Units 550,197 550,197 Less provision for diminution of DUTC Units (305,582) (305,582) Marpin 2K4 ordinary shares 4,358,420 4,358,420

20,602,280 20,323,100

Overseas ECHMB Shares 2,326,040 2,326,040 ECSE Shares 150,000 150,000 Anguilla National Bank Shares 100,000 100,000

Bank of St Vincent Shares 2,999,980 2,999,980 5,576,020 5,576,020

26,178,300 25,899,120

6(b) Fair Value Reserve - available - for - sale investments

2016 EC$

2015 EC$

At beginning of year 5,467,481 5,259,134 Fair value adjustments

-

208,347

At end of year

5,467,481

5,467,481

Equity in DOMLEC was previously shown at cost. As required by International Financial Reporting Standards, these ordinary shares are now shown at their fair value of $4.10 per share for 31/12/16, which are the prices quoted on the Eastern Caribbean Securities Exchange.

The resulting revaluation reserve is shown retrospectively on restating the equity in DOMLEC at the market value at the balance sheet date.


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2016 EC$

2015 EC$

Statutory Bodies 41,393,219 48,429,409 Student 2,347,709 1,951,936 Private Bodies 1,665,829 350,000 Staff 6,540,388 4,396,833

51,947,145 55,128,178

Some student loans represent funds disbursed to students, through the National Bank of Dominica, between 1990 and 1993 under the Dominica Social Security Student Loans Programme. A new programme commenced in 2014 managed by the scheme.

Loans are at interest rates ranging from 5% to 8% per annum with principal repayable over a 4 to 20 years period.

8. Property and Equipment

Land EC$

Building

EC$

Furniture & Fixtures

EC$

Computer Equipment

EC$

Motor Vehicles

EC$

Total EC$

Cost Balance at January 1, 2015 681,410 6,060,314 1,137,415 2,449,723 208,000 10,536,862 Additions - 10 2,949 45,303 95,591 - 243,843 Disposals - - - -- (58,000) (58,000) Balance on December 31, 2015

681,410

6,163,263

1,182,718

2,545,314 150,000

10,722,705

Additions - 132,585 93,025 159,450

- 385,060

Revaluation 2,500,603 (2,070,648) - -

-

- 429,955 Balance on December 31, 2016 3,182,013 4,225,200 1,275,743 2,704,764 150,000 11,537,720

Accumulated Depreciation Balance at January 1, 2014 - 3,424,612 801,841 2,345,548 147,063 6,719,064 Depreciation expense - 201,016 38,869 61,629 18,750 320,264 Disposals - - - - (58,000) (58,000) Balance on December 31, 2015 - 3,625,628 840,710 2,407,177 107,813 6,981,328 Depreciation expense - 211,656 70,612 97,255 18,750 398,273 Eliminated on revaluation - (3,837,284) - - - (3,837,284) Balance on December 31, 2016 - - 911,322 2,504,432 126,563 3,542,317 Net Book Value December 31, 2015 681,410 2,537,635 303,038 177,387 42,187 3,741,377 December 31, 2016 3,182,013 4,225,200 364,421 200,332 23,473 7,995,403


7.

Originated Loans and Advances


9. Accounts Payable and Accrued Expenses 2016

EC$ 2015

EC$ Provision for ex-gratia for staff in

employment as at 1998 and prior years

370,414

479,301 Provision for migration grant 23,037 23,037 Claims payable 1,026,326 1,030,052 Provision for gratuities 240,758 177,433 Other accrued charges 673,117 979,125

2,333,652 2,688,948

10. Other Income 2016 EC$

2015 EC$

Deposit interest 4,633,971 5,570,680 Treasury Bill interest 779,600 779,600 Bond interest 5,572,998 4,903,922 Loan interest 2,302,378 3,113,030 Dividend 1,296,641 1,458,588 Rent 497,260 352,444 Late fees 403,045 469,050 Interest on staff loans 238,413 192,013 Cash short/over 174 213 Others 85,208 91,723

15,809,688 16,931,263 11. Taxation The income of the Dominica Social Security is exempt from tax under Section 25, (1)

(Q) of the Income Tax Act Chapter 67:01 of the Revised Laws of the Commonwealth of Dominica (1990) edition. However, Value Added Taxation is included in service and supplies cost.

12. Revaluation Surplus The Scheme’s investment properties were revalued by Senior Property Valuer at the

Ministry of Lands - Property Valuation Unit, Mr Wilfred T. Dalrymple in 2014.

Land at Cotton Hill & Bell Hall Estates were valued at $14,272,305 on September 19, 2014 and land at Warner Estate at $17,250,970 on December 9, 2014. This resulting surplus made up as follows have been included in reserves on the statement of financial position.

Cotton Hill/Bell Hall Estate $ 11,661,648

Warner Estate 2,971,200

$ 14,632,848

The scheme’s office, land and building was revalued by Gaeton Seaman RICS, licensed surveyor and certified valuer in 2017 at a value of $6,826,000. The resulting surplus have been included in reserves on the statement of financial position.

DOMINICA SOCIAL SECURITY BOARDNotes to the Financial StatementsFor the Year Ended December 31, 2016

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DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 13. Reallocation of Reserves The Dominica Social Security Act makes provision for the fund to undergo an

Actuarial Review every three years. The 12th Actuarial Review revealed that both the short-term and employment Injury Benefit Branches were significantly over funded, and therefore recommended the transfer of reserves from both these branches to the long-term branch. It should be noted that the reallocation has no impact on the present funded position of the Dominica Social Security, but better allocates the contribution income to what obtains with the payment of benefits.

14. Derivatives and Financial Instruments Credit and Risk Factors The notes to the financial statements present the fair values of the balance sheet

financial instruments of the Dominica Social Security Board on the valuation methods and assumption indicated.

There were no derivative instruments as at the balance sheet date.

Under IFRS, fair values represent the amount at which the financial instrument could be bought, sold or exchanged in a current transaction, between willing parties, other than in liquidation. If available, the quoted market price in an active market is the best evidence of fair value and should be the basis for measurement. In the absence of quoted market price, an estimate may be obtained using the best available information.

Quoted market prices are not available for a significant portion of the Dominica Social Security financial instruments.

Fair values disclosed exclude the values of assets and liabilities that are not considered financial instruments but which add significant values to the Dominica Social Security.

Due to their short-term maturity, the carrying values of assets of certain balance sheet financial instruments are assumed to approximate their fair values. These include cash resources.

Notwithstanding, notes 3(a) & 3(e), certain accounts receivable are before the High Court for a determination. Although some measure of provisions has been made in the accounts as required by IFRS, nothing shall be construed as preventing the Board from recovering any sums due to the Fund by means of civil proceedings.

15. Redundancy Fund Provisions are made in the event that an employer is unable to pay redundancy

benefit then the Redundancy Fund advances the sums due to the employee and in return, pursue the employer with the aim to recover all sums due. Management decided that any redundancy receivables should be netted against the redundancy fund.


DOMINICA SOCIAL SECURITY BOARD Notes to the Financial Statements For the Year Ended December 31, 2016 16. Contingent Liabilities/Commitments

1. Legal

There are matters before the Courts for a determination wherein certain parties are claiming certain sums as general damages.

2. Other

There were no capital commitments at year end.

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NOTES

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