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`Means test' suggested or pensioners

That is the view of Opposition Senate Leader Sen. Alex Scott.Sen. Scott voiced fears this week that pension funds could dry up as more and more people draw on them.

That is the view of Opposition Senate Leader Sen. Alex Scott.

Sen. Scott voiced fears this week that pension funds could dry up as more and more people draw on them.

And pensions might have to be directed to the most hard-up Bermudians, he said.

This would be done through "means testing'' -- or checking people's financial positions.

But some Senators doubted whether means testing was a good idea.

Sen. Joe Johnson (Ind) said people who had looked after their finances wisely could lose out while those who had been irresponsible would benefit.

The issue of means testing was raised in the Senate on Wednesday during consideration of proposed pension increases. These were later approved unopposed.

Sen. Wendell Hollis (UBP), who introduced the proposals, maintained pensions had stayed ahead of inflation.

In real terms, pensioners were better off than in the past.

Sen. Hollis said means testing was not a bad proposal, although he cast doubt on how practical it was.

Pension levels were based on "actuarial advice'' from statistical experts.

"Unfortunately I do not believe a means test fits hand in glove with actuarial-based pensions,'' he said.

Sen. Scott, however, said there were advantages to means testing.

"There is validity in the notion that there is a means test to discern the wealth of those who receive benefit,'' he said.

This would mean some may forego their benefits if they were not reliant on them.