It is not too late to register for pensions. This is the message going out to businesses in Bermuda from the Pension Commission.

Even though the official start date for the new pension system on the Island was January 1, 2000, Government is offering leeway to companies who have not yet set up pensions.

"It is not too, late, there is still time,'' said a spokesperson for the Pension Commission yesterday.

"We would urge anyone who has not yet got a pension scheme to go to a pension provider right away and sort out their policy.'' At the first strike of the new Millennium the National Pension Scheme Amendment Act came into effect, which means that every Bermudian or spouse of Bermudian over the age of 23 who is in full-time employment will now by law have to have a personal pension plan.

There are fears that employers who have not got their plans in place yet could face steep fines if they fail to register on time.

But the official deadline for registering with the Pension Commission has not yet passed and is June 30, 2000.

Those who ignore these deadlines could face fines between $10,000 and $50,000, and even imprisonment.

Most plans at the moment are still with pension providers such as BF&M and Argus, who will forward the registrations to the commission.

The commission expects to begin processing claims in the next few weeks.

"Companies should not worry if the forms have been passed to the pension provider. Employees have to work 720 hours before the pensions begin, so there is still some time,'' said the spokesperson.

There are ten companies offering pension schemes on the Island, and all are working round the clock to process the forms.

These pension companies are Argus, BF&M, Colonial, Compass Pension Trust, Crown Life, Emerald Pension Services, Freisenburch Meyer, Osprey and Sun Life.

The Government has long realised that the state pension plan was vastly inadequate, offering a maximum of $797 a month when the average monthly household expenses in Bermuda are $3,500.

In a Green Paper in 1995 the viability of state pensions was closely looked at, bearing in mind a trend for a shrinking work force and an aging population.

The paper recognised that the state pension was inadequate for pensioners to live on and this amount needed to be enhanced.

And as the new year comes into effect, so does a legislation making it law for employers to establish and maintain pension plans for the benefit of their employees.