Seniors Pensions To Rise By 3%
Seniors will get a 3% pension increase starting in August, however employees will not have to contribute more until one year later, from August 2012.
Premier and Minister of Finance Paula Cox tabled the Contributory Pensions (Amendment of Contributions and Benefits) Order 2011, in the House of Assembly yesterday [July 1] morning.
Premier Cox said, “I am pleased to have tabled this Order as this is yet another indication of Government’s commitment to enhance the quality of life of our senior citizens.”
“The 2011 increase in benefits would normally be accompanied by a corresponding increase in contributions by an actuarially recommended rate of a combined $3.34 (5.5%) per week for employees and employers.”
“However, due to the continuing economic climate it would be counter-productive to increase the contributions at this time therefore the proposed 5.5% increase in contributions will not come into force until August 2012,” said the Premier.
Premier Cox noted that as at 31 March 2011, the Contributory Pension Fund had total assets of over $1.43 billion, representing approximately 12 times the annual value of benefits to be paid in the 2011/2012 fiscal year.
A spokesperson said, “Considering the relatively strong position of the Fund, it is anticipated that the Fund can withstand the one year delay in contribution increases.”
“However recognising the long-term challenges of the Fund, due to an aging population, it is essential that Government closely monitor the performance of the Fund; social and fiscal responsibility must be struck in order to maintain the long term viability of the Fund.”
In conclusion Premier Cox said, “For our seniors, the over 43 percent increase in pension benefits put through by this administration since its time in Government is above the underlying trend rate of inflation. Therefore seniors’ pensions will be in good shape for many years to come and will be able to be shielded from the effects of inflation by periodic adjustments in line with the movement in the Consumer Price Index.”
The previous increases were as follows:
- August 2000 when pensions were increased by 3%;
- August 2002 when pensions were increased by 3%;
- August 2003 when pensions were increased by 3%;
- August 2004 when pensions were increased by 9%;
- August 2005 when pensions were increased by 3.5%;
- August 2006 when pensions were increased by 4.0%;
- August 2007 when pensions were increased by 4.5%;
- August 2008 when pensions were increased by 5.0%;
- August 2009 when pensions were increased by 5.0%.
Thank You Bermuda Government…..Proud to be a Bermudian…!
Yoh Takbir, they jsut robbed peter to pay paul.
Look at the other cut backs. So they throw a few dollars towards Seniors.
You don’t get it do you.
The Seniors VOTE is a large one. Delaying contributions from employers until after the Election is wise one. Good one!
If anyone knows anything about pensions it’s not important how many times the assets can cover the benefits today it’s if they can cover them in the future. This what we call over or under funded. Currently the plan is underfunded meaning the value of assets today is below the present value of future liabilities or required future payments. Thus we at present can not afford to fund all the people who are estimated to retire in the future. Increasing the benefit without contributions makes this worse. Being 35 I have written off my govt pension. Either It’s not going to happen or it will be tiny!
You must be new to the Island. This has nothing to do with pensions or doing te right thing. There is an upcoming election, and the need to buy votes. Being underfunded means nothing, just another debt that will arise in the near future.
As Inspector Jaque Clooso vud say……
“Fact”…….
Yah….an in de vurds of Hercule Poirot….”FACK”!
Well done!
This government has consistently addressed the needs of seniors in this community. They have given steady increases for their entire 13 yrs so far in an attempt to bring the pensions to a respectable level. If the PLP govt had chosen not to increase pensions then seniors would be in an even worse state than they are now.
Premier Cox ,we thought it was bad under former Premier Brown..lady what the hell are you doing for the seniors ? in a nut shell you are screwing us, and getting away with it !!! shame on you…. oh by the way thanks for the small increase….and exactly how much money are you going to pay consultant Webb for her services ?
The larger question is, consultant to whom?
Are you not aware. The Seniors have had enough. The Seniors vote in large numbers. The PLP needs their Vote. Webb obviously is trying to slither her way back in. I hope she does it before Burch tries to Slither his way back in, because i think Webb would make a better Premier.
I Cannot stand the Government they make me SICK!!!! ;/
Everything is turned into a political football. The previous Government didn’t do shxx for seniors, this is why Government is trying to change this situation.The UBP didn’t have a social agenda, they were just interested making money for themselves. Gibbons Company, HWP and the list goes on. You complainers get your facts right.
Sorry Spikes But all the Governments Are Mog!! UBP PLP AND OBA is gonna be mog too!! if you look back into your history, the powers that be always take the whole loaf of bread for themselves and give the people the crumbs!!!
FACT!!!
And the people are so used to getting crumbs that when they the government decideds to give the people a peice of crust out of the whole damn loaf they think they are getting a whole lot!! smh* shameful!!!
FACT!!!
So now when we deceide to speak up about it we are complainers and blamers!! Well hell yes!!! because The Government takes Money out of each and every hard working persons paycheck EVERY DAMN WEEK!!! and they are not using or distrubuting the founds Correctly!!
FACT!!!
So with that said I CAN NOT STAND THE GOVERNMENT THEY MAKE ME SICK!!!! YES I AM SHOUTING!!!!! ;/