Concerns were expressed in the Senate over extra contributions people will have to make to get increased pension pay-outs.

The Senate yesterday approved plans by the Government to give retired public employees better pensions ? with many getting a 6.5 percent rise.

Government employees, former Ministers, Members of the Legislature, retired civil servants, teachers, Police officers and prison officers are all covered by the scheme.

However, the increases mean the Public Service Superannuation Fund (PSSF) will have to pay out an additional $2 million in pensions every year.

The Government plans to recoup the money by upping contributions.

Independent Senator Walwyn Hughes said the increased contributions could hit people in the pocket.

He said: ?The worrying part of this particular pension scheme is that it is un-funded.

?Somebody?s got to provide contributions into the scheme to pay for those pension increases. That?s becoming more and more of a burden for those who are paying.

?It?s out of whack. A large part of people?s salaries will have to go into their contribution to make it work.?

Sen. Kim Swan, of the United Bermuda Party, said: ?There are any number of persons who will in the future receive payments which are far greater than those currently being paid now.

?Certainly for the taxpayer it?s a very huge increase that has to be taken into consideration.?

Under the scheme, pensioners whose pensions began on or before June 30, 2004, will be awarded a 6.5 percent increase.

Those whose pensions began between July 1 and December 31, 2004, will get a six percent increase. For pensioners whose pensions began between January 1 and June 30, 2005, the rise will be 4.5 percent.

Pensioners whose pensions began between July 1 and December 31 last year will get a 3.5 percent increase, while those whose pensions began in the first six months of this year will be awarded a one percent increase.

From April 2006, PSSF contribution rates had been increased from five percent to six percent for regular members and 6.5 percent for uniformed officers. PSSF contribution rates will increase to seven percent in 2007, and eight percent in 2008, for regular members, while the PSSF contributions for uniformed officers will be increased to eight percent in 2007 and 9.5 percent in 2008.

Un-funded liabilities of the PSSF have arisen for a combination of reasons dating back to 1982, when the fund was first established, the House of Assembly has previously been told by Finance Minister Paula Cox.

However, the assets of the fund are currently said to be performing relatively well. In September, they stood at $388 million - roughly nine times more than the annual projected benefit pay-out of some $41 million in pensions and allowances for this fiscal year.

Yesterday, the Government?s draft order of the pensions increase, and the draft order of the pensions (public service superannuation act) were read to the Senate by Sen. Kim Wilson. It was approved with no objections.