A new inflation-busting pay deal has been rejected by around 1,800 civil servants after Government added a rider to increase pension contributions.

The deal, unveiled to Bermuda Public Service Union members at their HQ on Thursday, offers a rise of 4.5 percent in the first year and 4 percent in the second and the third year to be decided nearer the time.

One civil servant told that Government was expecting to rake in $800 million so its workers had expected a little more.

Although the rise is above inflation, now standing at 2.8 percent, it was turned down after Government wanted to start taking out one percent more in pension contributions from April 1.

Pension deductions would rise incrementally from the standard five percent to eight percent over the three years as Government scramble to cover a widening deficit which some observers say could see the fund go bust by 2016.

Part of the problem was too many people retiring at 55, said one source.

The fund is used by Police, Fire officers, teachers and Regiment staff as well as office workers.

No new pay talks have yet been scheduled after Government staff rejected the offer.

Thursday?s meeting led to Government issuing an apology to the public after workers emptied out of the airport cargo terminal forcing its closure.

A statement said: ?There was a BPSU meeting but management had required all departments within customs service to be properly staffed.

?One member per department was to attend the BPSU meeting and then return to pass the information on to colleagues.

?This was done in all other departments except the airport cargo terminal. The matter has been dealt with internally.?