Pension contributions to rise for civil servants
The amount deducted from civil servant salaries for their pension pot will rise from April 1 under new legislation tabled in the House of Assembly on Friday.
The five percent contribution currently taken out of salaries will rise by one percent each year for the next three years as the Government works to cover a deficit in the Public Service Superannuation Fund (PSSF).
The fund is currently paying out more each year than it takes in.
In the case of Police officers below the rank of Superintendent, fire officers below the rank of Divisional Officer and prison officers below the rank of Deputy Commissioner their contribution will be 6.5 percent of their salary from April 1 rising to 9.5 percent from April 2008.
The purpose of the PSFF is to provide pensions for retired employees of the Government of Bermuda as well as the employees of various quangos.
It was announced earlier this month that around 1,800 civil servants will receive a new inflation-busting pay deal which was negotiated by the Bermuda Public Service Union.
Workers will get a 4.5 percent rise in the first year of the three-year deal, four percent in the second, with the third year to be decided nearer the time.
