Good afternoon.
I am pleased to provide an update on three specific areas: the unemployment benefits; the Economic Advisory Committee; and the National Pension Scheme.
Unemployment Benefits
This week, I authorized unemployment benefit payments to 7,780 people, for a total of $9,210,000. We will now have paid benefits to over 9,000 people for a total cost of approximately $32 million. We expect further payments to continue on a bi-weekly schedule, which means another payment in two weeks on Friday, June 12.
As mentioned earlier, we continue to make progress to resolve problem applications, and this week we paid 640 applicants for the first time.
Last week I advised that over 1,400 people had notified the Department of Workforce Development of their planned return to work. This number continues to grow as Bermuda enters its second week of Phase Two, and over 2,600 individuals who were previously receiving benefits, have now returned to work – up by more than 1,200 from last week.
I want to reiterate that all individuals and companies have a responsibility to notify the Government of your return to work to confirm your eligibility period. Please visit www.bermudajobboard.bm, follow the link at the top for COVID-19 Unemployment Application, then the link at the top for the Back to Work form.
For those that have already done so, we thank you for the act of responsible citizenship.
The COVID-19 Economic Advisory Committee
The economic Advisory Committee held its second meeting yesterday, and the committee provided initial feedback and comments on the impact of COVID-19 on all sectors of the economy.
The committee explored proposed ideas that we have received to date from some of these sectors. In addition, the committee has now received submissions from other entities and individuals, including submissions made on the government forum website, and as agreed to include these as part of our assessments.
The Committee will be now be reviewing other possible ‘quick win’ ideas which could benefit the community in the short term.
National Pension Scheme
The public would be aware that the Government recently amended the National Pension Scheme (Occupational Pensions) Act 1998 to permit eligible members of private occupational pension plans, and local retirement products as appropriate:
(a) to make a voluntary withdrawal of up to $12,000, or
(b) take 25% of their pension account balances.
I am pleased to advise that starting on Monday June 1st, persons will be to make application for their funds.
With respect to the $12,000 withdrawal, applicants must be under the normal retirement age of 65 and not already retired. This is a one-time withdrawal, and applications are to be made to the applicant’s private pension plan administrators.
There are no fees associated with making this application and applicants should contact their administrators via phone or by email.
This option has been put in place as part of a COVID-19 economic relief programme to assist persons negatively affected by this pandemic. Therefore, persons will have until 30 June 2021 to make an application to request a withdrawal.
The Pension Commission has already provided guidance to the plan administrators to assist them with reviewing, processing and approving applications in order to make the process as efficient as possible.
Persons eligible for the 25% withdrawal should be 65, retired, no longer working and have not converted their pension account balance into an annuity.
Applications are to be made to the Pension Commission. The Commission stands ready to assist retirees in answering any questions they may have and applicants can contact them at 295-8672 for further information.
There are no fees associated with making the application, and there is no time limit for retirees to make an application under this option.
Thank you, and I wish everyone a happy Bermuda Day. Please stay safe.