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Anger over delay to pensions increase payout

Anger is growing among seniors over the delayed payout of this year's pensions increase - despite the Ministry of Finance's repeated claims that the interruption was down to the July General Election.

The Royal Gazette reported last week that a three percent increase had been promised to seniors earlier this year and was supposed to take effect from August. However, a Government spokesman said because Parliament was prorogued on June 10 for the July 24 General Election, Government was unable to table the legislation. The increase will now not kick in until December.

Opposition Leader Grant Gibbons said it was an "absolute disgrace" that the legislation had not passed before the Election.

However, a Finance Ministry spokesman pointed out that, because the Contributory Pensions Act was not technically part of the budget legislation, Parliamentarians do not usually get around to dealing with pensions increases until after the budget legislation has been dealt with - usually at the end of the summer session in July.

With the Election called for July, he said, there were "a number of pieces of legislation that could not be dealt with", including the pensions increase.

Pensions are usually only increased every other year, he added. But this year the Government decided to increase them two years in a row.

One 68-year-old St. George's woman said it was a good thing she did not spend her money until it was in her hand, saying: "I'm on a very limited budget because my pension is not a full pension. We were told that we were getting an increase in August and when my cheque arrived and it didn't reflect the increase, I called the appropriate office and was advised that they were aware of it and it would be reflected in September's cheque.

"And then September came and it wasn't," the woman, who did not want to be named, said. "And when I called again I was told it would have to go back to Parliament.

"So now I would like to know if we are ever going to get it and if so if it will be retroactive as of August?"

A 70-year-old Pembroke woman, who also did not wish to be named, said if the increase did not go through in December it would be "a real let-down", while a 73-year-old Smith's man said: "There's a sense of great frustration about it.

"I can think of many seniors where the state pension is the biggest part of their income. This is producing hardship."

It was not the seniors fault there had been a General Election and a hurricane, he pointed out. Age Concern director Claudette Fleming said her organisation had been advised the affair was a matter for the legislators to consider. She recommended seniors go to their MPs and make their voices heard once Parliament reconvenes on October 31.

And a statement from Age Concern urged Government to substantially increase the pension further to make it more realistic to the cost of living in Bermuda.

It said: "One of the key issues for seniors today is the inadequate level of Government pension payments to seniors, many of whom do not have company pensions and rely heavily on the Government pension to try and make ends meet.

"It is with dismay that Age Concern Bermuda has learned that the three percent increase will not be paid until the middle of December and will not be made retroactive to August."

And she said Age Concern was appealing to legislators to make the increase retroactive.

But, even if the increase does get passed, a Ministry spokesman could not say whether the back payments would be made at all. "If they were to be considered there would need to be further amendments to the Contributory Pensions Act because the Act does not provide for retroactive payments to be made," he explained.

"One factor which greatly complicates the idea of retroactive payment is where the money comes from. The pension is a contributory pension, meaning that if back payments are made they will have to come from retroactive contributions by employers etc. These kind of contributions are not typically retroactive," said the Ministry spokesman.

However, the 73-year-old Smith's man said: "I think it is something that both parties would recognise as eminently correct that there should be a back payment.

"That's about four months in arrears."

"I just feel so lost," said the St. George's senior citizen. "Really I'm not angry, I'm just lost. For me personally it is a good thing that I wait until I have the money in my hand - the bird in the hand - before I spend it.

"All this is very personal. Because we've had the hurricane now I cannot shop on Wednesdays to get my five percent discount because there's no bus service and the ferry time is too long. A taxi is out of the question it is too expensive."

The Pembroke resident added: "I thought it was very disturbing because we were looking for that pension. I think it should have been in August. Lots of seniors were planning on it. I hadn't because I think I'm well seasoned by now. There's always a time when they will say we cannot give it to you this time, we will have to wait another two or three months. So I didn't want to be caught off guard."