Pension payments in Bermuda are set t rise by 2.75 per cent boost with the upcoming increase back dated nearly one year.
Bermuda Premier David Burt, who made the announcement in the House of Assembly, says the pension increase will “fully covers the overall rate of inflation, but also allows for some recognition of the specific impact on seniors on limited incomes due to the increase in food prices”.
LONG TERM EFFECT ON FUND
The pensions increase is retroactive to August 16, 2021. The retroactive payout would cost pensions funds $4.4 million “in the short term”.
However, the benefits hike would have “a small negative impact” on the fund in the long term, according to the Government’s actuary. The increase would take basic contributory pensions from $1,077.14 per month to $1,106.75 and the maximum contributory pension from $1,564.18 to $1,607.19 per month.
This increase will mean that seniors will receive between an extra $355 to $516 each year. The 10,000 residents receiving social insurance benefits will also receive a lump-sum payment of up to $473.11.