SSB Seeks Public Feedback on Seven Proposed Reforms

The Belize Social Security Board (SSB) is seeking feedback on seven proposed reforms as it continues its second round of nationwide public consultations. A consultation session in Belize City on October 14th presented the proposals to stakeholders, with further sessions scheduled in other communities through November. Workers, employers, pensioners, and other interested persons are invited to comment on changes to contributions, pension calculations, pension increases, and fund safeguards.
The board says reform is needed because benefit costs, particularly pensions, are rising faster than contributions. Its presentation projects that total expenditure will exceed total income in 2035. People are living longer, the pensioner population is growing, and the working population is not increasing at the same pace. Meanwhile, inflation continues to reduce the purchasing power of existing pensions. SSB presents the seven measures as an interconnected package intended to balance adequate benefits with the system’s ability to meet its long-term financial obligations. The proposals remain under consultation and have not been approved.

The discussions follow 19 nationwide consultations, including one in San Pedro, held between February and May. More than 1,000 people attended those sessions, and feedback supported moving away from fixed wage bands while retaining different contribution shares for lower- and higher-income earners.
The first proposed reform would calculate contributions using actual earnings, raise the weekly contribution floor from $55 to $130, and gradually increase the ceiling from $520 to $800. The overall contribution rate would remain at 10%, with revised employee and employer shares.
The second proposal would set the qualifying age for the non-contributory pension at 65 for both men and women, lowering the qualifying age for men from 67. The third would increase the maximum contributory pension replacement rate from 60% to 65%, rewarding longer contribution records. The fourth would calculate pensions using the best seven years of earnings instead of three.

The fifth proposal would adjust existing pensioners’ pensions based on their retirement year. The sixth would review cost-of-living increases every three years, cap increases at 2% and make them subject to affordability. The seventh would establish financial triggers to allow corrective measures when the fund faces specified pressures.

Explaining the financial concern, SSB Chief Executive Officer Jerome Palma told Love FM, “Benefit costs are growing faster than contributions.” He added, “Total expenditure is projected to exceed total income in 2035, meaning that’s our period of equilibrium.”
On the proposed ceiling increase, Palma stressed that implementation would be gradual. “So, the proposal is not a jump from 520 to 800 in one year. We want to phase it in over a few years.”
Under the proposed timetable, the weekly contribution ceiling would increase to $600 in 2028, $700 in 2029, and $800 in 2030. Some contributors and employers would pay more, while others could see reductions as payments reflect actual earnings rather than fixed wage bands. Higher insured earnings could also improve benefits.
Future pension adjustments would depend on the fund’s financial position and would not be guaranteed automatically. Public feedback will inform the board’s consideration of the package as consultations continue through November.