10% Pension Increase For Public Sector Retirees
The Government introduced legislation to “provide a 10% increase in pensions for public sector retirees” and said that “payments will begin in October 2026 and will include retroactive amounts back to April 2026.”
A Government spokesperson said, “On Friday, the Government introduced the Pensions [Increase] Amendment Act 2026 to provide a 10% increase in pensions for public sector retirees, effective from 1 April 2026. Public sector pensions have been frozen since 2014, and this increase is another promise made to retirees that the Government is delivering on.”
Premier and Minister of Finance David Burt said, “This increase recognises the service of public sector retirees and delivers additional financial support, while also reflecting our responsibility to ensure the long-term sustainability of the pension fund.”
The spokesperson said, “Payments will begin in October 2026 and will include retroactive amounts back to April 2026, ensuring there is no loss to retirees because of the implementation timeline. The increase was made possible because the Public Service Superannuation Fund [PSSF] has been stabilised through the Public Service Superannuation [Stabilisation] Amendment Act 2025, which placed public sector pensions on a stable financial footing.”
But not for all retirees? Why?
Here we go again. The government especially this government has increased the payouts from the pension fund and even promised retroactive pay yet they have failed to say that the fund will go bust in the relatively near future. This is basic math, if you continue to insist on increasing the output without any additional income the fund will run out. However they have already approached the public sector workers and said that the plan they have to compensate for this is to have the workers pay more into the fund and work for longer. Perhaps until 70 years old before receiving the benefits. This may sound good on the surface to some but I remind you that each individual worker’s contribution is kept as a separate record and that plus the government’s identical contribution and interest payments over the years is what the individual worker is supposed to be receiving their benefits from. However the public sector has the worst benefits payouts policy. In the end it matters not what you contribute but what your final salary is and far too often the recipients receive a pension higher than what their pension account can afford and the funds are drawn from the “pot” that the younger generation is pouring into. The sad reality is in less than three decades the “pot” will have been drained completely leaving everyone who will retire at that point without any benefits to have after contributing for a lifetime. So I do not support this ploy to gain seniors’ support ahead of a change of leadership in the PLP. I see the bigger picture and question what about the children of the future generations? This current elected government will not be in power when the money runs out and they have no real plan to deal with that reality. They are literally signing a check with their mouth that the funds cannot sustain!!!
“The increase was made possible because the Public Service Superannuation Fund [PSSF] has been stabilised through the Public Service Superannuation [Stabilisation] Amendment Act 2025, which placed public sector pensions on a stable financial footing”
What kind of mathematical magic made that possible?
As long ago as the early 1990s government actuaries reported that the superannuation fund was unsustainable. By the late 1990s the government actuaries reported that the superannuation fund had over $1 BILLION in unfunded liabilities.
Whilst the PLP Government will not reveal Bermuda’s true financial position, what we do know is that our current account is nearly $4 BILLION in debt and more than 25 years after the government actuaries reported that the superannuation fund had over $1 BILLION in unfunded liabilities, we have more than $4 billion in unfunded pension liabilities in addition to our current account debt.
It is notable that neither the PLP Government spokesperson nor the Premier and Minister of Finance David Burt suggested how much this 10% increase will cost the taxpayer or where the money will come from. I can only conclude that the PLP Government will borrow more money to fund this increase in pension payments.
Oh, and a 10% increase is more than 3 times the current rate of retail price inflation in Bermuda according to Premier and Minister of Finance David Burt.
“It is notable that neither the PLP Government spokesperson nor the Premier and Minister of Finance David Burt suggested how much this 10% increase will cost the taxpayer or where the money will come from. I can only conclude that the PLP Government will borrow more money to fund this increase in pension payments.”
The budget clearly indicated a surplus for last year and projected one for next year. Clearly these funds will be used to uplift the seniors. The OBA and its supporters hate the idea that public service workers who in the most recent history, are majority black Bermudians, will actually be helped by their government. And of course, there must be the accusation of mismanagement.
But I bet those OBA supporters who actually do receive the money, won’t be turning it back!
At least one group is getting a raise more inline with inflation. Any surprises at who it is and who will be paying for it?
Election coming up shortly. They need more than a tea party for CS retirees to assure who they will vote for.