Senate passed National Pensions Scheme (Occupational Pensions) Act 1998.

In companies where there are Bermudian staff, all workers will have a pension scheme -- additional to the Government provision.

Starting in 2000, and phased in over five years, employees and employers will eventually pay a minimum of five percent each of the salaried income to a pension fund.

The funds will be managed and invested, via strict controls from a Pensions Commission, and enable workers to have a reliable income when they retire.

The legislation stipulates that the fund will be held separately from company assets and that they will be portable.

After noting the trend that the work force was shrinking and the elderly was growing, UBP Senator Allan Marshall said retirees needed more income than the Contributory Pension Scheme provided.

Currently retirees receive $796 in benefits.

"Sixty to seventy percent of one's salary should be enough,'' he said.

Sen. Terry Lister (PLP) said the new scheme was a "long time in coming''.

And he expressed concern for long term residents who were told on Monday by Government that they will be allowed to stay in Bermuda. "It is not fair to have people stay but not include them in the pension scheme,'' he explained.

"Not all people on work permits are making a lot of money.'' Sen. Lister also said that a provision allowing employers to sit on the advisory boards that administers pensions was flawed.

"Employers should not be part of the administration.'' But he voiced his pleasure that Bermudians will be educated on the importance of pensions, "so people will understand that they have to plan for tomorrow''.

Senators heard the new pension legislation should ensure all companies protect funds saved by their employees.

They stressed the importance of monies contributed by workers and their bosses being separate from other company funds.

Senate Leader E. T. (Bob) Richards said he had heard of some companies making pension funds part of their balance sheet -- not ensuring that the pension money was kept entirely separate.

He said: "The assets of a pension fund have to be separate from a company's assets.

"It is not a good thing for them to be part of a balance sheet. I am sure some of these companies are honourable but it is excellent that this act requires funds to be segregated.'' Sen. Yvette Swan (UBP)said she was concerned that she hoped that firms that were already combining the two put their house in order with the new legislation.

Earlier Sen. Terry Lister expressed concerns over people that moved jobs before the two year "vesting'' period was up, and subsequently lost the contributions that had been made.

Sen. Lister said people who didn't stay in a job as long as two years would lose out.

And he said people who started work at 18 also lost out valuable pension saving time, since the scheme didn't start until age 23.

Sen. Walwyn Hughes (Ind) said the act was not for the faint-hearted and the new pensions commissions would have a heavy responsibility in interpreting the legislation.

Sen. Jeanette Cannonier (Ind) said it was a step in the right direction, adding she was sure there would be many changes to the legislation over the years.

The act was a "most fabulous thing for Bermuda'', said Sen. Angelita Fox. She added: "There is nothing wrong with amendments. It is a living document.'' Sen. Milton Scott (PLP) raised concerns on benefits for survivors, who lost out when their partner died before the pension was due to be collected. He claimed those spouses would lose out.

He said there was also a need to look at hotel workers' pensions and the Public Service Superannuation Act with regard to the new pension act.

And, he added there were also police, fire and prison workers who retired early but could not collect their pensions for another seven or eight years.

In addition, he said he was concerned about non-Bermudians not being part of the scheme.

But E. T. (Bob) Richards said non-Bermudians were not being discriminated against and could join the scheme if they wanted to, but were not forced to.

He said the emergence of the private pension, alongside the Government contributory scheme, would ensure people were provided for in their retirement.

Senate President Alf Oughton said there would be a great need for education of both the workers and the employers, who would both have additional responsibilities with the new legislation.

In committee senators went through the Act clause by clause, with opposition Sen. Terry Lister calling for several amendments to be made.

He argued that non-Bermudians would be discriminated against and that hotel workers should be allowed to have their tips included as part of their salary in order to get a better pensions deal.

And he also described some of the words in the Act as "wooly'', urging certain phrases to be changed.

But when it came to a vote Government senators closed ranks and none of the amendments passed.

Sen Allan Marshall