Police officers, firefighters and prison staff will be allowed to work until they are 60, under a new law approved by the Senate.

MPs in the House of Assembly passed the Public Service Superannuation Amendment Act 2007 two weeks ago, and on Wednesday, it gained cross-party support in the Senate.

The bill will allow those in the public sector to work later into their years, past the current retirement age of 55 for Police, fire and prison staff, and of 60 for other employees, such as teachers.

Civil servants will now be able to carry on until they are 70, with the prior approval of the head of the civil service.

The Public Service Superannuation Amendment Act was introduced by Finance Minister Paula Cox to address the falling birth rate and a growing older population.

The Island's 20-64-year-old workforce is set to fall by 21 percent by 2045, from 40,428 to 31,950. However, the number of seniors is projected to increase by 140 percent, from 7,728 to 18,506. This will result in a decline in the ratio of workers to retired people of 5-1 to 2-1.

To ease the ageing crisis — which is a global problem — the law will be amended to allow people who have retired from the civil service to rejoin without losing their monthly pensions claims.

In introducing the bill, the Government also pointed to recruitment problems in the Police and Prison Service, saying that losing experienced staff to retirement at 55 is only exacerbating this problem.

Officers will now be able to carry on working, subject to a review of health, conduct and performance.

The public service pension scheme will also be amended to allow temporary, part-time and casual Government employees to participate, through regular contributions.

Senator Kim Wilson said on Wednesday: "The Act seeks to make better pension provision for employees and to improve the administration of the fund.

"It will address what is clearly one of the most important demographic issues of the 21st century, and will allow those employees who want to continue in employment to remain in employment to the age of 70."

She said that the unions were willing to raise the level of contributions and that this would "place the fund on a more stable funding". The Bermuda Police Service and Prison Service were also "very supportive of the proposals".

Ms Wilson added: "The assets of the Superannuation Fund continue to perform relatively well, at $416 million — nine times more than the estimated annual projected pay-out."

Independent Senator Walwyn Hughes said the extended retirement age would allow public sector employees to pass on their knowledge and experience.

"I think it is a great step by this Government to try and address the issue of people living longer these days. It's an excellent plan," he said.

"It's also a good thing we are doing here by taking advantage of the wisdom and skills of more senior employees."

Senator David Burch added: "This certainly assists us tremendously, from a uniformed services point of view. This will go a long way in being able to provide us with some experience, knowledge and wisdom.

"We will look forward to encouraging numbers within the uniformed services and in helping us to get up to strength."

Senate President Alfred Oughton said: "This has been called for for some time now and the Government should be congratulated.

"It will be interesting to see the impact this has on the private sector because I'm certain there will be a trickle down from this."