2011-2017 Pension Commission Annual Report

Minister of Finance Curtis Dickinson tabled the Pension Commission Annual Report for the years 2011 to 2017 in the House of Assembly today [Nov 1].

Minister Dickinson said, “The National Pension Scheme [Occupational Pensions] Act 1998 [Act] provides for the establishment, administration and regulation of private occupational pension plans for Bermudians.

“The Pension Commission received a clean audit opinion on its financial statements for the years 2011 to 2017.

“The Pension Commission has advised that delays in the submission of annual financial statements between 2011 and 2017 were initially caused by resourcing issues at both the Office of the Auditor General and the Pension Commission.

“Notwithstanding the delay in tabling this annual report, as I mentioned previously all audits were successfully completed with clean opinions. I am also pleased to advise that the Commission’s 2018 audit has been completed and the Commission has received another clean opinion on its 2018 financial statements. The annual report for 2018 will be tabled in this Honourable House in 2020.”

The Minister’s full statement follows below:

Mr. Speaker, in accordance with section 64[1] of the National Pension Scheme [Occupational Pensions] Act 1998 [Act], I am pleased to table the Pension Commission Annual Report for the years 2011 to 2017.

Mr. Speaker, Honourable Members will be aware that the National Pension Scheme [Occupational Pensions] Act 1998 [Act] provides for the establishment, administration and regulation of private occupational pension plans for Bermudians.

Mr. Speaker, the Pension Commission received a clean audit opinion on its
financial statements for the years 2011 to 2017.

The Pension Commission has advised that delays in the submission of annual financial statements between 2011 and 2017 were initially caused by resourcing issues at both the Office of the Auditor General and the Pension
Commission.

Mr. Speaker, notwithstanding the delay in tabling this annual report, as I mentioned previously all audits were successfully completed with clean opinions. I am also pleased to advise that the Commission’s 2018 audit has been completed and the Commission has received another clean opinion on its 2018 financial statements. The annual report for 2018 will be tabled in this Honourable House in 2020.

Mr. Speaker, Honourable Members are advised that as at December 31, 2017, 3,096 employers and 22,006 employees/self-employed persons were participating in registered plans. In comparison, 2,996 employers and 23,722 employees/self-employed persons were in registered plans at the end of 2010. The Commission estimates that there was $2.36 billion held in employer pension plans and a further $656 million in domestic prescribed retirement products at the end of 2017 compared to $1.4 billion and $239 million, respectively, at the end of 2010.

Mr. Speaker, according to reports submitted to the Commission, there wereapproximately 731 delinquent employers/self-employed persons by the end of 2017. The Commission continues to work with employers committed to making the necessary back payments and to this end held 106 compliance meetings with such employers in 2017. The Commission continued to exercise its civil recovery powers under the Act by initiating legal proceedings against 20 employers and/or their directors and officers in 2017 compared to 3 in 2010.

Mr. Speaker, a few noteworthy achievements during the 2011 to 2017 period
were as follows:

• the Commission was invited to make presentations at the Canadian Investment Institute education program in Bermuda, the Rotary, the Chamber of Commerce, a Human Rights Commission panel, the Bermuda Human Resources Association, the Centre on Philanthropy, the BEDC, the Bermuda Health Council and local radio talk shows;

• the Commission approved $24.3 million in financial hardship withdrawals;

• the CEO of the Commission was elected to the executive of the Caribbean Association of Pension Supervisors, a regional supervisory and regulatory body for occupational pension plans;

• the Commission held its first two-day Trustee Training Programme for individual and corporate trustees of pension plans; and

• the Commission continued to provide assistance and expertise to a number of external entities such as the Spending and Government Efficiency Commission, Government’s Fiscal Responsibility Panel and the Pension and Benefits Working Group.

In closing I would like to acknowledge the tireless efforts and inarguable progress that the Pension Commission is making and extend my appreciation to the Board, management and staff of the Commission for their efforts during the 2011 to 2017 period.

Thank you, Mr. Speaker

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