Senior citizens will get more money in their pockets after MPs yesterday voted to increase their pensions.

But the Opposition United Bermuda Party said the three percent increase was too little too late - and said Bermuda's pensions were among the lowest in the world.

MPs voted unanimously to increase the pensions and to backdate it to August.

Although the UBP supported the increase, its MPs claimed the three percent rise was below the current 3.8 percent rate of inflation - in effect making seniors worse off.

And the UBP said the increase should have been brought in by August, and that Government's claim that the General Election prevented them from introducing it earlier was not a valid excuse.

Finance Minister Eugene Cox said the three percent increase would be backdated to August and that the inflation rate over the year levelled out at three percent.

And he accused the Opposition of “talking nonsense” because Government statisticians analysed the inflation rate for the year when making calculations about a pension rise.

The average monthly pension rise will be $30, based on the average pension of $650, said UBP seniors' spokeswoman Louise Jackson.

So, even though the money will be backdated, the average lump sum paid will probably be $150.

“The World Bank has ranked Bermuda 120th in the world as to how we treat our seniors,” Mrs. Jackson said.

The pension increase did not occur as promised in August because the legislation could not be tabled before the General Election was and Parliament was dissolved, said Education Minister Paula Cox.

But Opposition Leader Dr. Grant Gibbons argued that the call for a July General Election was not a good enough excuse for the increased pension not to be passed.

He said when an increase was brought forward by the United Bermuda Party in 1998 the increase was passed before the election that occurred in November.