Video: Premier Burt On Social Insurance Reform

August 20, 2018

A receptionist who makes $40,000 a year paying the exact same amount to the social insurance system as the CEO who makes $40,000 a month is “unfair,” Premier David Burt said, explaining that they plan to bring the system “into line with other systems in the world, where they pay on a percentage of their income.”

Premier Burt, who also serves as Minister of Finance, recently sat down with Bernews for a live interview on a wide range of topics, with social insurance reform one of the matters discussed.

Premier - Social Insurance TC

Following the 4.2% increase in social insurance contributions which was effective on August 1, 2018, the combined rate per week for both employer and employee is $71.84, or $35.92 each.

In addressing tax reform, the Premier told Bernews, “We want to make it meaningful so that more money can go into the pockets of those people who need it the most.

“That’s the reason we talk about social insurance reform, which I think was very interesting that the Opposition decided to attack what our plans would be. What we are doing with our social insurance system in Bermuda is bringing into line with every other system in the world, where they pay on a percentage of the income of which they receive.

“Bermuda is the only country where the receptionist who makes $40,000 a year pays the exact same amount to the social insurance system as the CEO who makes $40,000 a month. It is unfair, and we are going to fix the unfairness that is inside of the Bermuda economy.”

Video excerpt showing the Premier discussing social insurance reform:

The video above was extracted from the full interview, in which Premier Burt discussed a wide range of topics including the Government’s finances, employment numbers, a living wage, sex offender registry, Grand Atlantic, the Shelly Bay proposal and more.

The extract on retirement age and pension reform is here, we will post additional excerpts from the interview, and to watch the full 36-minute live interview replay, please click here. and if you want to listen ‘on the go’, you can also access an audio-only version of the full interview in the podcast section of the Bernews app.

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Comments (17)

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  1. Truthertz says:

    Ever since the PLP came to power my pay check has seen higher and higher Governmental related deductions. And they have only been in power for a year!

    • Robin Hood says:

      I am soooooo thankful that I am retiring this year! Good luck with these morons who want to over tax! I bought a mansion in DR and am retiring there! Will get my pension before 2049 too! Ha Ha!

  2. Joe Bloggs says:

    “Bermuda is the only country where the receptionist who makes $40,000 a year pays the exact same amount to the social insurance system as the CEO who makes $40,000 a month.”

    I’m not sure that is true, but if you are going to make the CEO pay more, will he or she get more at retirement? Right now, both pay the same but both also receive the same benefit at the end of the day.

    If Social Insurance contributions are going to demand that people pay in according to their income but receive the same benefit on retirement then call it income tax, not Social Insurance reform.

  3. Creating more taxes for them to spend.

  4. aceboy says:

    Nice comparison Mr. Burt. What you also fail to mention is that the CEO takes nothing out of the Social Insurance “pot”. It is essentially a donation.

    Heading towards income tax like a freight train. You will only hurt your own people

    • gustav says:

      mainly expats are getting such an monthly salary .
      all expats have to pay the social insurance.
      all expats don’t get anything out of the system.
      actually it is a social donation.
      but go ahead and increase taxes , duties etc , just don’t complain of the outcome , slightly lateron.

      btw who was it , who assured to make the living costs in Bermuda lower.

      • Portia says:

        No, it’s not actually a donation, depending on how long the expat has worked in Bermuda, they will be entitled to a monthly Government pension when they reach 65, even if they aren’t living in Bermuda when they retire. If they have not worked here long enough to qualify for an old age pension, then they are entitled to get back ALL of the social insurance contributions they made into the pot while they were working here, so it’s not a donation.

        • aceboy says:

          But very few actually bother to jump through the hoops necessary to get this pension.

  5. Hmmmm says:

    So what would be the benefit for the person making $40,000.00 per year, vs the person making $40,000.00 per month?

    If the benefits do not reflect the contributions, this is nothing more than an additional tax.

    Right now, the benefit reflects the contributions, no matter what your salary level.

    • lalala says:

      Exactly, if your going to force people to pay at different rates hen the payout will need to be at corresponding rates..

      Another plp ploy to chase away exempt companies!!

  6. In all fairness I have to say…stop y’nonsense.

  7. What says:

    He don’t even know how social Insurance works!!

  8. Me says:

    Thank goodness the media made the premier aware of the pension problem he has been so busy getting himself a bitcoin and remember he wanted to take the pension funds and use it to fund government projects ,beyond believable

  9. Kim Smith says:

    If someone pays into social insurance according to what their remuneration is (which is not the way it is done now), then whoever pays in more would be entitled to collect more at payout. Currently, everyone pays IN the same amount and so they receive the same amount at payout. I cannot understand what is unfair.

    • Toodle-oo says:

      ‘unfair’ is another PLP code word that is intended to have specific suggested (but most of the time fake) implications to keep their support base angry.
      2 Bermudas !

  10. kevin says:

    Burt has no intention of creating a scheme by which your compensation will reflect your contribution … way baby he wants the payouts to remain the same but charge more to those who make more……. what a joke this guy and his circus are, they are just flying by the seats of their pants and hoping nobody notices that all they have done is increase your taxes
    We could get a group of kindergarden toddlers who would be more useful

    I didn’t vote for these clowns

  11. No more says:

    I’m no longer paying tax. I give up and refuse to pay into social insurance anymore this year. So far no problems refusing to pay it and no repercussions. The government will waste it and when I retire in forty years it’ll be lost anyway bankrupt so why should I. The day they come after you for it just leave Bermuda. This needs to be rebranded as income tax. They are taking too much the cost of living here is too high to pay for thfor previous mistakes of the ppl putting us in debt so I refuse flat out to pay. Sue me Burt. Not getting a penny.