Good afternoon,
It has been several weeks since the Government passed legislation on March 24th to provide unemployment benefits to those impacted by COVID-19 related job losses. In a very short time leading up to (and during) the Shelter in Place Order, we architected and implemented a new system from scratch, and collected an unprecedented number of applications from individuals and employers.
Unfortunately, necessary details -- required to ensure entitled individuals only were receiving benefits in accordance with the regulations -- were either missing or inaccurate in a large number of applications, resulting in many failed payments and ultimately in delays in receiving badly needed benefits.
Over the last couple of weeks, much of this has been cleaned up, and significant improvements to the system have been implemented. Resolving a lot of the initial challenges has not been an easy task, and the team deserves a lot of credit for answering the call and working hard to deliver benefits to a large number of people.
This week we are paying benefits to over 7,000 applicants, totaling approximately $7 million. Including this week, the program will have paid an aggregate of approximately $22 million in benefits.
I am happy to report that over 500 individuals that were receiving benefits have returned to work and informed the Government. I want to remind everyone, both employees and employers, that you must report the date are returning to work immediately to the Department of Workforce Development. You may do so by emailing your information to unemploymentbenefit@gov.bm.
COVID- 19 Economic Advisory Committee
To navigate appropriately through this crisis, we will require the input and advice from all stakeholders in the community.
As mentioned in my Ministerial Statement on Friday 8th May, I have established a COVID-19 Economic Advisory Committee.
The Committee includes key stakeholders in the Bermuda economy and community.
I can confirm that the terms of reference have been drafted and the first meeting will be held next. At this meeting, the terms of reference will be reviewed by the Committee and ratified.
The role of the Committee is to provide insight and expert advice on how to protect jobs and stimulate economic activity during the economic crisis stemming from the COVID-19 pandemic. The objective of the Committee is to assess and recommend prioritized impactful strategies for the short, medium- and long-term economic recovery from the crisis.
More specifically, the Committee shall:
- Solicit and obtain information and ideas from a broad cross-section of the community and all sectors of the Bermuda economy about the functioning of the economy and potential recovery initiatives;
- Provide prioritized recommendations on the design, implementation and evaluation of policies to promote growth, create jobs and improve the long-term prosperity of Bermuda;
- Provide analysis and information for the operations, regulations and healthy functioning of the economy;
- Engage, direct and liaise with subcommittees as needed for the development and implementation of approved recommendations;
- Review, assess and propose changes to Government and Government corporate bodies, and agencies; and
- Assist with other items as the Minister of Finance may request.
I will chair of the Committee, and it’s membership will include 10 other individuals. The Committee will include representatives of all key sectors of the Bermuda economy. The Committee will also invite other participants to present or provide information.
To ensure full participation in the process and increase efficiency, the Committee may also establish various subcommittees as it deems appropriate to arrive at the best outcome for the country.
These sub-committees may include business owners, industry associations, key individual stakeholders and public officers. Sub-committees are anticipated to have an industry focus and may include tourism and hospitality; technology and infrastructure; financial services; retail and services; social services and healthcare; development and construction.
The sub-committees will present their observations, findings, initiatives, action plans and recommendations to the Economic Advisory Committee for review and consultation.
I look forward to starting the work that is necessary to identify and eventually implement the measures to enable sustainable economic growth and mitigate the social impacts of the pandemic.
Financial Hardship Withdrawal
I am pleased to confirm that today the Senate passed the legislation amending the National Pension Scheme (Occupational Pensions) Act 1998 to permit a person under the age of 65 who participates in a private, defined contribution pension plan or local retirement product, to voluntarily withdraw up to $12,000. This legislation will now be sent to the Governor for his signature.
Once the legislation has been brought into operation, a member or a former member of a pension plan or local retirement product under the age of 65 will be able to apply to their administrator for a one-time refund of up to $12,000. If their application is approved, their plan administrator will have up to 20 working days to make the payment.
The Senate also passed regulations to allow members and former members of a pension plan or local retirement account to receive a refund of up to 25 percent of their account balance, provided they had attained normal retirement age (65) and had retired.
The Pension Commission will be providing specific guidance to the plan administrators to make the entire process as efficient and timely as possible.
Thank you.