Hospital employees are angry over changes to their retirement plans which mean early retirees will no longer get health cover paid by the Bermuda Hospitals Board.

The Royal Gazette understands the changes were introduced last week and will affect more than 1,200 staff.

The switch means staff with sufficient years under their belt to retire at 55 can no longer get 50 percent health insurance coverage but must wait until the standard retirement age of 65 to get this help.

If they leave early they get no cover unless they pay for it themselves.

One hospital source said it particularly affected people with existing health problems who were thinking of retiring early but were unlikely to get health cover.

Bermuda Public Services Union general secretary Ed Ball said the union had never agreed to changes.

He said: “The BPSU have never had formal discussions on the matter. We look forward to meeting with the board in order to do so.”

Hospital staff are already angry at changes to their pensions and alleged rake-offs from their $40 million retirement fund which is now being investigated by the Pensions Commission.

Pension Commission head Peter Sousa said: “It is still under review. We have a number of meetings planned. We don't want to rush to any conclusion.”

Last last year it was revealed retired hospital workers were forced to take jobs in their senior years because of shortfalls in their fund.

However, Mr. Sousa said the Commission had no jurisdiction over changes to the health cover for retiring hospital workers.

But the Commission is probing claims that $800,000 of commission fees, performance fees and management fees were being charged by third parties while funds grew so slowing that members were left shortchanged.

Last night Bermuda Hospitals Board human resources director Scott Pearman said the change in retirement policy was for the betterment of all of its staff and he denied anyone would lose out.

He said: “The Bermuda Hospitals Board's official retirement age is 65 years and employees who retire at that age are offered the opportunity to continue on the health insurance scheme with 50 percent of the contributions paid by the Board.

"The new Board policy maintains this benefit. Employers are not required to carry employees on their health insurance plan once the employee retires or leaves the service of the employer."

He said historically the Board did not have an early retirement programme that extended automatic paid health insurance benefits.

“The new policy guarantees employees who retire between the age of 55 and the Board's official retirement age of 65 the right to self-fund their participation in the Bermuda Hospitals Board's private insurance plan.”

He said the unions were advised through the Joint Consultative Committee meeting process of the impending changes.

“There is no reduction in guaranteed benefits, as long-serving staff members now have a policy that stipulates the benefits they can expect from the Board upon their retirement. Previously there was no formal documentation of health insurance benefits for retiring employees”.

But he added: “As we are at the end of our current pension contract, we are preparing a request for proposal for pension services provided to the BHB. We will inform our staff of any updates in due course.”