Premier and Minister of Finance, the Hon. David Burt, JP, MP, commented on the promise made to seniors concerning pension increases.
He said, “After one pension increase for seniors in six years, this Government pledged to increase pension benefits for seniors every year by the rate of inflation. We are delivering on that promise. In December 2017, an increase of 1.7% was afforded to seniors which was back dated to August 2017.
“To maintain the long-term viability of the Social Insurance Plan, whenever benefits are increased, contributions are increased as well. However in 2017 the Ministry of Finance was sensitive to the fact that contribution rates had already been set by employers for the current fiscal year, therefore, the increase in contributions was delayed until August 2018.
“Government will keep our pledge to our seniors by ensuring their pension benefits keep up with the increase in Bermuda’s cost of living.
Premier Burt concluded, “Next year, in conjunction with our pledge to create a fairer tax system, Government will begin the process to change pension contributions from a flat rate to a more progressive system ensuring that our most vulnerable Bermudians will carry a lower share of the burden of sustaining our pension system.”