Some NHT refunds delayed but Trust says normal
Caribbean Money Daily
In a year of record refunds, being the highest estimate in seven years, the National Housing Trust (NHT) has encountered delayed repayments for some contributors.
Delays, the Trust indicates were either to employer actions or applicant misinformation, principally.
Refundable contributions have been increasing year by year. In 2023 the total refundable was J$149.069 billion and for each year prior, ranged from $136.808 billion in 2022 down to $91.251 billion in 2017.
The NHT Contribution is currently set at two per cent of gross salary for employees and is paid over by employers who also contribute to the Trust three per cent of each employee’s gross salary, making a total of five per cent due for each pay period.
One contributor said on August 19 that it was only after many months of “ backing and forthing” that he finally got his refund.
The businessman said, “Apparently there seems to have been some major "system glitch" with the refunds system and as a result they have failed to provide refunds for hundreds (more likely thousands) of people who have applied since January.
He added, “They have no apparent fix in sight, have not said anything publicly but try to treat it as a case-by-case basis, pretending as if the affected cohort is small.”
The Trust in comment replied “the National Housing Trust, NHT did not experience any glitch that delayed the refund of contributions in
2024. The NHT is also not aware of any undue delays in the disbursement of contributions due for refund, beyond what may be classified as some general set of factors that impact the speed at which applications are processed.”
These the NHT said include, “Employers’ Annual Return for the particular year being unreconciled due to a number of factors
such as inaccurate/insufficient payment of contributions, non-submission or incomplete Annual Return and employee’s data being missing from annual return (e.g., incomplete or inaccurate NIS & TRN information).”
The Trust also pointed to data errors by customers which include incorrect NIS numbers submitted on the application or
the incorrect banking information provided, to include incorrect bank account number and type of account (savings vs chequing account).
Others include instances where the name on an application does not correspond with the name in the NHT database or the name for the bank
account submitted. There were instances where customers applied for the incorrect year or for years already refunded, which also contributed to delays in the processing of applications for refund.
For pensioners challenges included outstanding documents in the case of section 22 (total refund of contributions) including retirement letters, proof of age and deceased claim documents such as consent forms
The NHT said that it successfully refunded approximately 167,000 applications for contributions refund for the period January to July 2024.
It was noted, “The refunded amount was almost $8 billion dollars. This is
approximately 14,000 applications more when compared to the same period for 2023.
Contributions actually refunded fall significantly below the total refundable, perhaps because the refunds of mortgage holders are absorbed as NHT payments, employers contributions are nonrefundable and perhaps also because of the level of applications.
In 2023 total contributions refunded were $8.256 billion in and in 2022 $6.704 billion
in 2021 refunds were $6.457 billion, in 2020 $6.486 billion, in 2019 $ 6.175 billion , in 2018 $5.514 billion and in 2017 $ 5.268 billion.
In 2024 the Trust promised to refund contributions up to the year 2016. Contributors are entitled to the refund in the 8th year after the contribution was made.
Those who contributed to the NHT in 2016 would have been entitled as of January 1, 2024, and were invited to apply.
In fiscal 2022-2023 the NHT made an accumulated profit of $164.427 billion compared to $158.656 billion in the year prior.
Total expenditure on housing was $45.948 billion in 2023 down from $46.514 billion in 2022 and $48.069 billion in 2021.
Return on assets reported last year (2023) was 5.6 per cent, down from 6.4 per cent in fiscal 2022.
At year end March 2023, total assets held by the Trust were valued at $348.170 billion, an improvement over $328.317 billion reported at fiscal yearend 2022.
Contributors who become mortgagors will have the amount for refund applied to their mortgage principal. The remainder of those who claim are paid cash.
-Caribbean Money Dailyr
Delays, the Trust indicates were either to employer actions or applicant misinformation, principally.
Refundable contributions have been increasing year by year. In 2023 the total refundable was J$149.069 billion and for each year prior, ranged from $136.808 billion in 2022 down to $91.251 billion in 2017.
The NHT Contribution is currently set at two per cent of gross salary for employees and is paid over by employers who also contribute to the Trust three per cent of each employee’s gross salary, making a total of five per cent due for each pay period.
One contributor said on August 19 that it was only after many months of “ backing and forthing” that he finally got his refund.
The businessman said, “Apparently there seems to have been some major "system glitch" with the refunds system and as a result they have failed to provide refunds for hundreds (more likely thousands) of people who have applied since January.
He added, “They have no apparent fix in sight, have not said anything publicly but try to treat it as a case-by-case basis, pretending as if the affected cohort is small.”
The Trust in comment replied “the National Housing Trust, NHT did not experience any glitch that delayed the refund of contributions in
2024. The NHT is also not aware of any undue delays in the disbursement of contributions due for refund, beyond what may be classified as some general set of factors that impact the speed at which applications are processed.”
These the NHT said include, “Employers’ Annual Return for the particular year being unreconciled due to a number of factors
such as inaccurate/insufficient payment of contributions, non-submission or incomplete Annual Return and employee’s data being missing from annual return (e.g., incomplete or inaccurate NIS & TRN information).”
The Trust also pointed to data errors by customers which include incorrect NIS numbers submitted on the application or
the incorrect banking information provided, to include incorrect bank account number and type of account (savings vs chequing account).
Others include instances where the name on an application does not correspond with the name in the NHT database or the name for the bank
account submitted. There were instances where customers applied for the incorrect year or for years already refunded, which also contributed to delays in the processing of applications for refund.
For pensioners challenges included outstanding documents in the case of section 22 (total refund of contributions) including retirement letters, proof of age and deceased claim documents such as consent forms
The NHT said that it successfully refunded approximately 167,000 applications for contributions refund for the period January to July 2024.
It was noted, “The refunded amount was almost $8 billion dollars. This is
approximately 14,000 applications more when compared to the same period for 2023.
Contributions actually refunded fall significantly below the total refundable, perhaps because the refunds of mortgage holders are absorbed as NHT payments, employers contributions are nonrefundable and perhaps also because of the level of applications.
In 2023 total contributions refunded were $8.256 billion in and in 2022 $6.704 billion
in 2021 refunds were $6.457 billion, in 2020 $6.486 billion, in 2019 $ 6.175 billion , in 2018 $5.514 billion and in 2017 $ 5.268 billion.
In 2024 the Trust promised to refund contributions up to the year 2016. Contributors are entitled to the refund in the 8th year after the contribution was made.
Those who contributed to the NHT in 2016 would have been entitled as of January 1, 2024, and were invited to apply.
In fiscal 2022-2023 the NHT made an accumulated profit of $164.427 billion compared to $158.656 billion in the year prior.
Total expenditure on housing was $45.948 billion in 2023 down from $46.514 billion in 2022 and $48.069 billion in 2021.
Return on assets reported last year (2023) was 5.6 per cent, down from 6.4 per cent in fiscal 2022.
At year end March 2023, total assets held by the Trust were valued at $348.170 billion, an improvement over $328.317 billion reported at fiscal yearend 2022.
Contributors who become mortgagors will have the amount for refund applied to their mortgage principal. The remainder of those who claim are paid cash.
-Caribbean Money Dailyr
.JPG)
Comments
Post a Comment