change pensions for workers in Bermuda.

The amendments to the National Pension Scheme will mean that the advent of the year 2000 will not only bring in a new Millennium, but also a new law which will make it mandatory for Bermudians and spouses of Bermudians over 23 to have in place a pension plan for their retirement: From the self-employed to the huge conglomerates, each worker has to have an occupational pension plan from January 1, 2000.

Employers with existing policies will have 12 months in which to bring their plan in line with the act and the new regulations.

Businesses without pension plans will have only six months to have an approved scheme in place.

Those who are self-employed will now have to have a personal pension of their own which will see them into retirement.

The Bermuda Government has tabled the amendments to ensure that Islanders will have sufficient funds on which to retire. The current state pension is seen as inadequate.

The Government is passing the amendments in the hope that the Island will not have an underclass of senior citizens within the next 50 years.

New National Pension Scheme to be debated Non-Bermudians who are not spouses but resident on the Island are not affected by the law. However, many employers have been offering all their employees the same pension benefits as a matter of course.

The pension plans are personal, which means that they belong to the individual.

These plans will not be run by the government, but by private companies -- the Government is however passing legislation that will make it law that every worker is covered. One key feature of the act is that the pension schemes will now become the responsibility of the plan administrator, i.e. the pension plan provider. They will make sure that the employers make payments on time on behalf of their employees.

If an employer fails to do this, they will face strict penalties and could end up in court -- and even behind bars. In May this year the Pension Commission was set up to bring together the new legislation. From January 1, 2000 it will be the commission's job to implement the new laws and make sure they followed through.

The commission also has the task of informing the public about what the new legislation means.

Pension providers have been vying for business since the proposal was put on the table.

There are nine main providers of pension plans. Those on the Island offering pension plans are Argus, BF&M, Colonial, Compass Pension Trust, Crown Life, Emerald Pension Services, Freisenbruch Meyer, Osprey Investments and Sun Life.

Many of the companies have waived the set up fee in order to get business, or given reductions for businesses with less than five employees.

Annual management fees vary from 1 percent (Argus) to 2 percent (Compass Pension Trust), while others have a flat fee for the year. Most do not charge for moving pensions from providers. None of the companies charge termination fees.

Just two, Freisenbruch Meyer and one Osprey Investments plan will accept payment in US dollars only. The rest can either be in US or Bermudian dollars, but over half charge to convert contributions to US dollars.

Most larger companies already have their new plans in place, but some smaller companies and self-employed workers are believed still to be without cover.

Race for pensions: Each and every Bermudian and their spouse working on the Island will have to have a personal pension plan by January 1, 2000.

PENSIONS GOVERNMENT GVT