The Government will table legislation this parliamentary session to bring about a major overhaul of public sector pensions, the Premier has confirmed.

In a statement this evening, David Burt said that the reforms were necessary to ensure that the public pension pot was “sustainable”.

He explained: ”With people living longer, the Public Service Superannuation Fund is facing challenges unforeseen when it was established over 40 years ago at a time of lower life expectancy.

“Ensuring that our public pensions are sustainable is not just a financial necessity, it is a commitment to the people who serve the people of Bermuda every day that the pension they earned will be there when they retire.”

A Ministry of Finance spokeswoman said that the reforms are planned to be phased in over the next ten years, including gradually increasing the retirement age, raising contribution levels and adjusting the reference wage.

The spokeswoman described the measures as “essential to protect the PSSF from depletion and ensure that public officers can rely on their benefits for years to come”.

The Government hosted a webinar for public officers to outline the proposed legislative changes to the pension system last Friday.

Mr Burt said: “Friday’s presentation allowed us to share with public officers a change to the proposals made following similar sessions in 2024.

“At that time, though public officers understood the need to make changes to ensure pensions are sustainable, concern was raised about the impact increased contributions would have on take-home pay.

“We confirmed to public officers that those concerns were recognised and factored into the historic pay agreement with unions.

“In addition to cost of living and historical pay adjustments, the Government is funding the increased employee contributions, so that public officers will not see their take-home pay reduced.”

Legislation reflecting the proposed changes is expected to be tabled in the House of Assembly this legislative session, prior to the implementation of changes, which is planned to begin on October 1 this year.