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<\/p>\nCreated: Feb 20, 2026 04:01 PM (Updated: Feb 20, 2026 05:33 PM)<\/p>\n
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The pension pot for retirees in the public sector has been budgeted for a \u201cone-time 10 per cent increase\u201d to be passed by legislators this year.<\/p>\n
David Burt, the Premier, said in the Budget Statement for 2026-27 that the pensions boost would be made effective from April 1.<\/p>\n
He noted that public service pensions had been frozen since 2014, and that retiring workers \u201cshould not be left falling further behind\u201d as costs increase.<\/p>\n
He added: \u201cMany are living on fixed incomes, and when prices rise year after year, the pressure is real.\u201d<\/p>\n
Mr Burt said the Government was not yet in a position to give automatic cost-of-living adjustments until the Public Service Superannuation Fund was better placed.<\/p>\n
However, he acknowledged that the move had been made possible by the Public Service Superannuation Fund Amendment Act 2025, passed in September 2025<\/a>, which warded off a crash<\/a> in the pensions fund predicted for 2045.<\/p>\n Those reforms raised the minimum age for uniformed services to collect full pensions from age 50 to 55, and for most other civil servants from 60 to 65.<\/p>\n Contributions to the fund also increased, with the changes phased to take effect from 2027 to 2035.<\/p>\n Recipients of the Contributory Pension Fund may also have to wait longer for their pensions as Mr Burt said the retirement age of 65 will gradually have to increase.<\/p>\n The Budget also addressed the \u201crealities in front of us\u201d on the Contributory Pension Fund \u2014 which Mr Burt called \u201cthe social insurance safety net for every working Bermudian\u201d.<\/p>\n Citing the rise in \u201clongevities across societies\u201d, he told MPs there would have to be \u201ca gradual increase in the age that one receives social insurance benefits\u201d.<\/p>\n The Premier did not specify further \u2014 but said the collection of contributions also needed a review, telling the House of Assembly that \u201cthe cashier should not be paying the exact same a month as the owner of the supermarket\u201d.<\/p>\n Mr Burt said a fairer approach would be a move toward \u201ca percentage-based approach, with a suitable cap\u201d.<\/p>\n
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