Government Webinar On Public Pension Reforms
The Government recently held a webinar for public officers to outline proposed reforms to the Public Sector Superannuation Fund [PSSF].
A Government spokesperson said, “The Government reaffirmed its commitment to protecting the retirement security of public officers by advancing critical reforms to the Public Sector Superannuation Fund [PSSF], which aim to ensure its long-term sustainability for current and future retirees.
“On Friday, July 4, the Government hosted a webinar for public officers to outline the proposed legislative changes to the pension system, continuing a process of open and ongoing dialogue that began in 2023. This session followed a series of in-person and virtual briefings with union leaders and public officers. This presentation was another opportunity to share information, answer questions, and inform public officers of the changes made to the proposals based on feedback from prior consultations.”
Premier David Burt, who addressed participants during Friday’s session, reaffirmed the Government’s commitment, stating, ”With people living longer, the Public Service Superannuation Fund [PSSF] is facing challenges unforeseen when it was established over 40 years ago at a time of lower life expectancy. Ensuring that our public pensions are sustainable is not just a financial necessity, it is a commitment to the people who serve the people of Bermuda every day that the pension they earned will be there when they retire.”
A Government spokesperson added, “Over the past 3 years, the Ministry of Finance has held multiple rounds of consultation with union leaders and key stakeholders. Their input has helped shape a balanced, fair, and phased approach to reform, ensuring that those close to retirement are protected while future retirees and employees will be able to benefit from a more sustainable system.”
The Premier continued, “Friday’s presentation allowed us to share with Public Officers a change to the proposals made following similar sessions in 2024. At that time, though public officers understood the need to make changes to ensure pensions are sustainable, concern was raised about the impact increased contributions would have on take-home pay. We confirmed to public officers that those concerns were recognised and factored into the historic pay agreement with unions. In addition to cost of living and historical pay adjustments, the Government is funding the increased employee contributions, so that public officers will not see their take-home pay reduced.”
A Government spokesperson added, “The reforms planned to be phased in over the next ten years, including gradually increasing the retirement age, raising contribution levels, and adjusting the reference wage, are essential to protect the PSSF from depletion and ensure that public officers can rely on their benefits for years to come.
“Legislation reflecting these proposed changes is expected to be tabled in the House of Assembly during this legislative session, prior to the implementation of changes, which is planned to begin on October 1, 2025.
“Any public officers with questions on the reforms are welcome to email ministeroffinance@gov.bm.”
“With people living longer, the Public Service Superannuation Fund [PSSF] is facing challenges unforeseen when it was established over 40 years ago at a time of lower life expectancy”
Dear Premier Burt, the Ministry of Finance announced 30 years ago that the PSSF was underfunded and was running a deficit. What has changed since then?