chief Gerald Simons. He fears the legislation will be a cash drain on the BEC.

Raymond Hainey reports.

Plans for a national pension scheme could drive small or vulnerable firms out of business, Bermuda Employers Council's president warned yesterday.

And Gerald Simons called on members of the Bermuda Employers' Council to start a paper blitz directed at Finance Minister Eugene Cox in a bid to force changes to the new pensions law, due to come into force next year.

Mr. Simons said: "We're talking about people getting out of business here.

"And a number of them have written to the Minister already expressing their concerns, especially supermarkets, hotels, restaurants and cleaning firms.'' Mr. Simons said scores of worried employers had already registered protests -- although he added that he was not aware of a Ministerial response as yet.

A draft letter sent to BEC members said: "It is our opinion that the Act was hastily introduced and has the appearance of trying to be all-encompassing, which has resulted in it being excessive, overwhelming and rigid.

"While we do not wish to hinder the introduction of the Act we would urge you to seriously consider making these amendments which will ease the cost and administrative burden for our organisation.'' The BEC draft letter said employers "strongly opposed'' the inclusion of overtime payments, commission and bonuses in pension calculations.

Other concerns include: The lack of an exemption period for small firms employing three or fewer people -- which employers fear could overburden many smaller employers; The requirement for anyone who works at least 720 hours in the first year in a job to have a pension scheme. Employers said many firms employ a lot of part-timers and that only a primary employer should have to cough up; The rule that pensions be started for workers aged 23 and over after two years in post. Employers want a 25-year-old starting point and a minimum of five years' full-time employment and; The vesting period of two years for the employers' contribution to be extended to five years.

Fears over pension plan legislation Mr. Simons, a former United Bermuda Party Government Minister, added: "What is interesting is that a number of firms which have expressed concerns are those who provide pensions and who are known for providing good employee benefits.

"What we have there is a company with the freedom to construct its benefits for the benefit of the company and the employees.'' And he pointed out that companies may already have perks like stock options and profit-sharing in place to benefit their workers.

But Mr. Simons said: "That's the top end companies -- the bottom end and smaller companies simply can't afford addition benefits.'' Mr. Simons added that there was a precedent for a grace period for small firms in the 1970s health insurance legislation, which allowed breathing space for little companies employing three or four people before they had to sign up.

BEC executive director Malcolm Dixon added in a separate letter to group members a lobby paper in January had succeeded in pushing the pension D-day back from July 1 this year to January 1, 2000.

And he said employers had raised concerns at a Pension Forum organised by the Ministry of Finance in May -- but that unanswered questions had still not been answered.

Mr. Dixon added: "Nor has there been any indication on whether Government is willing to make any amendment to the Act.'' Mr. Cox could not be contacted for comment last night.

Fears over pension plan legislation Mr. Simons, a former United Bermuda Party Government Minister, added: "What is interesting is that a number of firms which have expressed concerns are those who provide pensions and who are known for providing good employee benefits.

"What we have there is a company with the freedom to construct its benefits for the benefit of the company and the employees.'' And he pointed out that companies may already have perks like stock options and profit-sharing in place to benefit their workers.

But Mr. Simons said: "That's the top end companies -- the bottom end and smaller companies simply can't afford addition benefits.'' Mr. Simons added that there was a precedent for a grace period for small firms in the 1970s health insurance legislation, which allowed breathing space for little companies employing three or four people before they had to sign up.

BEC executive director Malcolm Dixon added in a separate letter to group members a lobby paper in January had succeeded in pushing the pension D-day back from July 1 this year to January 1, 2000.

And he said employers had raised concerns at a Pension Forum organised by the Ministry of Finance in May -- but that unanswered questions had still not been answered.

Mr. Dixon added: "Nor has there been any indication on whether Government is willing to make any amendment to the Act.'' Mr. Cox could not be contacted for comment last night.

Gerald Simons