Insurance

Social insurance contributions will be paid on a sliding scale depending on income: Speech from the Throne – The Royal Gazette

Updated: 05 Nov 2022 08:13

The summoning of Parliament. Pictured- The Speech from the Throne read by Tom Oppenheim, the Deputy Governor. (Photograph by Akil Simmons)

Social insurance payments will be made on a sliding scale based on what a person earns, according to yesterday’s Speech from the Throne.

No details on how the changes would impact individual contributors were given, and the One Bermuda Alliance said it was “not ready to confirm its position” on the overhaul.

The Speech from the Throne reads: “The state of Island pension funds must be handled with sensitivity and caution.

“Unfunded liabilities need to be confronted and social insurance contributions made progressive.

“For too long Bermuda has been an international exception and our social insurance system must be brought into line with ideals of fairness.

“Therefore, the government will introduce amendments to the Contributory Pensions Act 1970 to provide for a sliding scale of contributions, based on earned wages and not a flat contribution regardless of income.

Cole Simons, leader of the One Bermuda Alliance (Photograph by Blaire Simmons)

Cole Simons, the leader of the One Bermuda Alliance, said his party had no opinion on the proposed changes to social insurance.

Asked if he thought the planned reforms were progressive or could prove harmful to people who contribute less, Mr Simons told a press conference: ‘We think it’s worth the effort. to be considered, and so we, as a parliamentary group, are going to caucus on this issue.

“We’re not going to say yes or no. We believe this is something worth exploring further and at this stage we are not ready to confirm our position on this.