For a business with an ageing work force, employees will have to pay out a great deal more if they want a reasonable pension return within the next ten years.

A company with a young work force can look at a longer term approach as investments can increase in value over decades into larger sums.

High or low risk investments are another factor which will have to be investigated carefully. High risk may give better return, but is by its nature more of a gamble.

For those who like things to be better safe than sorry, will go for low risk, low return investment.

Many schemes allow for a portfolio of investments which allow some high risk/high return and some low risk/low return to balance things out.

But if in doubt the best solution is to talk to many different pension providers to find the best pension for you or your employees.

Pension companies, such as Argus, BF&M, Colonial, Compass Pension Trust, Crown Life, Emerald Pension Services, Freisenburch Meyer, Osprey and Sun Life are working round the clock to get pensions up and running for the new year.

Independent financial advisors on the Island are also advising clients on what is best for their specific situation.

But there is some lee-way in the mad rush -- workers will have to put in 720 hours before the payments kick in.

But employers who have not got their plans in place yet could face steep fines if they fail to get their act together. The deadline for having registered with the Pension Commission is June 30, 2000. Those who ignore these deadlines could face fines of between $10,000 and $50,000, and even imprisonment.

The government has long realised that the state pension plan was vastly inadequate, offering a maximum of $797 a month when the average monthly household expenses in Bermuda are $3,500.

In a green paper in 1995 the viability of state pensions was closely looked at, bearing in mind a trend for a shrinking work force and an ageing population.

The paper recognised that the state pension was inadequate for pensioners to live on and this amount needed to be enhanced.

And as the new year comes into effect, so does a legislation making it law for employers to establish and maintain pension plans for the benefit of their employees.

BUSINESS BUC