Undue hardships to small business owners and shortened work hours for part-time employees are likely outcomes of the new pensions legislation in the view of Gerald Simons, President of the Bermuda Employers Council.

Mr. Simons expressed fear that Government may be moving too fast to make the new law compulsory by January 1, 2000.

He questioned whether the newly-formed Pensions Commission will be ready for the institution of occupational pensions for all businesses by January 1, 2000.

Mr. Simons admitted to members of the Hamilton Rotary Club yesterday, that he is nervous about the situation. He explained to the members at their weekly luncheon, that the pensions commission was just recently appointed.

"The Commission was appointed in May.'' he said, "It is now advertising for a Director and other key personnel and the regulations need to be in place by September.'' A delay of a few years for small business owners to comply was Mr. Simons' suggestion to alleviate the problem. He advised Government to take a similar approach to that adopted when the Hospital Insurance Act came into being.

"In 1971 when that Act came into force and required employers to establish health plans,'' said Mr. Simons, "that requirement applied only to those employers of three or more employees.

"Why not take a similar approach in the pension legislation?'' he asked. "At least in the first few years until the Pension Commission is fully established and staffed and the principle of universal compulsory pensions is more widely understood within the community? "No great harm will come to people who set up a pension plan a year or two after the year 2000.'' he continued.

"If these small employers and self-employed persons were initially excluded, the administrative burden on the Pensions Commission would be lessened considerably and the community at large would be happier.'' Mr. Simons revealed his concern that many small business people including fishermen, farmers and taxi drivers have not even contemplated the regulations.

"Now many businesses both large and small are hardly aware of the requirements of the new law.'' he said pointing out, "the law provides fines for people who do not comply with it.'' Mr. Simons also expressed concern that stipulations in the Act requiring mandatory pensions for all employees once they work at least 14 hours, will prove detrimental to workers.

"This requirement will result in significant increases in costs for these employers and the employees.'' he said.

"I foresee employers adjusting hours to ensure that they are outside the legal requirement and this will lead to lessened work hours for employees.'' he held.

"From the point of view of the part-time worker, we should recognise that many of them take on these jobs to educate their children, pay off mortgages and make ends meet.

"They certainly do not want another deduction particularly since they must contribute $21 a week to the Contributory Pension Fund.'' he pointed out.

Mr. Simons also noted the challenge for employers of the 14-hour stipulation.

"One retailer has estimated that requirements of the pension law will increase his pension costs by some 40 percent.'' he added.

"I am concerned about the effect of increased costs on our competitive position as a tourist resort.'' A personal concern of Mr. Simons is that the new law places too much of a financial strain on people earning $20,000 and less.

"For people earning $400 a week, the present $21 dollars represents over five percent of their pay.'' he said.

"Under this law, they will be required to pay another five percent to a private pension plan and I believe that could place them in hardship and difficulty.'' he noted.

A further criticism from the Employers Council is that the age to join should be increased from 23 to 25.

"I know of few 23 or 24-year-olds who are keenly interested in saving for retirement.'' Mr. Simons said. "Why not make the mandatory age 25?'' Making it clear that the Bermuda Employer's Council supports the law overall, Mr. Simons noted, "Occupational pensions are like motherhood and apple pie -- everybody supports them.''