A person under 23 is not entitled to a pension by law. Some companies may, at their discretion pay a portion of a pension scheme. It may be worth investing in a private scheme.

*** Young Bermudian, over 23, full-time employed Those in their mid-20s stand to benefit most from the Government pension scheme. A Bermudian over 23 who is working will have to have a pension plan by law. This includes self-employed, but if the employee work less than 720 hours a year (14 hours a week) they are exempt. The pension plan will not start until 720 hours have been worked in the year 2000. The idea is that by 2004, the employee and the employer will both be contributing an equal sum of 5 percent of the employees wages until the age of 65. There is a clause that allows the person to retire at 55 and receive the pension, but, unless extra payments have been made the pension will be less.

But with 40-odd years of contribution payments behind the employee, he or she stands to get more on retirement. A plan, with good investment performance could see this group get back upwards of 70 percent of their wages on retirement, based on having contributed to the fund for 40 years.

If the employee switches jobs, the pension fund can be moved to another fund or left where it is and a second pension fund started.

The employee can only take your contributions out of a pension fund if they have worked for a company for fewer than two years, unless otherwise stated in the pension plan.

*** Bermudian/ spouse of Bermudian part-time employed If you work under 720 hours a year, which is an average of 14 hours a week, you are not obliged to have a pension by law. It may be worth considering taking out a pension privately. If you work over 14 hours a week, then you will get a pension.

*** Married Bermudian and spouse of Bermudian A Bermudian or the spouse of a Bermudian over 23 and working will have to have a pension plan by law. This includes self-employed, but if less than 720 hours are worked a year (14 hours a week) then the person is exempt. The pension plan will not start until the employee has worked 720 hours into the year 2000. By 2004, the employee and the employer will both be contributing an equal sum of 5 percent of the employee's wages. The employee can retire at 55 and receive a pension, but it will not be worth as much as the same person who works until 65, unless extra payments are made.

If the employee switches jobs the pension fund can be moved to another fund or left where it is and a second pension fund started.

If the pension holder dies the spouse will receive at least 60 percent of the pension, even if the surviving spouse remarries. A waiver can be signed which allows a lump sum payment, or a lifetime annuity. However if a person marries someone when he or she is already retired and receiving benefits, and that retired person dies, then the spouse will not get any of the benefits.

*** Expatriates A person working in Bermuda under a work permit does not have to have a pension by law. A pension from a previous job can be kept going or a private pension can be invested in. Many companies will be offering expatriates the same pensions offered to their Bermudian workers. But remember to check if payments can be taken away when your contract expires and if employers' contributions are included in this. The spouse of an expatriate who is not working is not entitled to a pension. It may be wise to look into options for a private pension, or continue payments on a scheme in a different country.

Depending on the pension scheme, upon death the spouse of the pension plan holder will receive, for example, between 50 percent and 70 percent of a pension.

*** Working Bermudians/spouses of Bermudians 55 plus The Government is most worried about this segment of the work force -- those who are 10 years from retirement and have not been contributing to any retirement plan. Without a pension they would have to subsist at retirement on monthly Government pension cheques, which today stand at a maximum of $797.

BUSINESS BUC