A bill to allow public sector employees to work past the current retirement age was passed by Parliament yesterday with all-party support.

The Public Service Superannuation Amendment Act 2007 will permit Police, Prison and Fire officers to work on until they are 60 rather than face mandatory retirement at 55 while civil servants, previously restricted to leaving at 65, can carry on until they are 70.

Finance Minister Paula Cox who introduced the bill said action was needed as Bermuda faced a workforce which will decline by 21 percent by 2045, from 40,428 to 31,950, because of falling projected birth rates.

Meanwhile the number of seniors is set to increase by 140 percent from 7,728 to 18,506.

She said the projected ratio of workers to retired people will decline from 5-1 to 2-1.

To help address the ageing crisis, which is a worldwide phenomena, she said Government will allow civil servants to work until they are 70 if the head of the Civil Service agrees.

And the law will be amended to allow people who have retired from the civil service to rejoin without losing their monthly pensions claims.

Ms Cox said: “This may encourage some seniors to remain in the workforce and continue to contribute their accumulated wisdom and experience in Bermuda’s quest for a sustainable development.”

She said both the Police and Prisons department had suffered recruitment problems making it all the more problematic when experienced and valuable staff were forced out at 55. Those officers too can now remain while still getting their pensions — subject to a review of health, conduct and performance. The act will also be amended to allow temporary, part-time and casual government employees, not currently eligible for the public service superannuation fund, to now participate.

Ms. Cox said some Government employees were leaving before the eight-year vesting period and then immediately being re-hired. To discourage this there will now be a three-month wait before refunds are made.

The act also brings good news for dependants of those on a government pension.

*Childless widows and widowers will now get 60 percent of the pension — up from 50 percent

*Children of the deceased can get pension money up to the age of 25 — up from a cap at 21 — if they are in full-time attendance at a recognised school, college or university.

*If the deceased leaves children but no widow the children will be entitled to 60 percent of the deceased’s pension — up from 50 percent — in equal shares.

*If the deceased is survived by only one child that child shall get 40 percent of that parent’s pension — up from 25 percent.

Currently there are no provisions for when a childless, unmarried contributor dies after becoming eligible for the pension. Now a pensioner who dies without drawing five year’s of the pension can have designated that money to be paid to a beneficiary for the rest of that five years.

Opposition Finance spokeswoman Pat Gordon-Pamplin welcomed the bill and said it was evidence Government had listened to something the United Bermuda Party had been calling for over many years as she lamenting the way those over 65 were put out to pasture despite having good years left in them.

Government MP Glenn Blakeney said Bermuda’s alarming decline in birthrates made the Bill extremely important while UBP health spokesperson Louise Jackson also welcomed the bill.

She said: “There are many people aged 65 who can’t afford to retire, many people don’t have that choice. This comes as a wonderful thing for people who are no longer forced to retire at 65 and go home and stagnate.”

She said there were a lot of myths about older workers — that they were less productive and wanted to slow down.

And she welcomed the fact that older people would not be forced to choose between surviving on a pension or working on and losing their pension entitlement for that period.

“I am very concerned about the amount of seniors who are flooding our financial assistance department. I am hoping they will not have to go to financial assistance.”

Labour and Immigration Minister Derrick Burgess said he rejoiced in older people who were natural trainers of younger people and often had great work ethics and enthusiasm.

He said the bill should be a guideline for the private sector not to get rid of productive workers just because they were up in years.

Mr. Burgess noted that two UK reports had called for rises in the retirement age while the fact people were living longer was causing substantial shortfalls in pension funds.

Opposition shadow minister of justice, John Barritt asked why the ages 60 for Police, Prison and Fire officers and 70 for other civil servants had been chosen. He urged Government to try and eradicate ageism, which he said is rarely discussed on the Island.

Government back bencher Walter Lister said he applauded the move because valuable employees have been lost in the past due to the old law, especially at the hospital.

Former Education Minister Terry Lister said the law would benefit the schools of Bermuda because experienced teachers who want to continue working would now be able to.

The Bill was passed unanimously.

Extending the retirement age