MPs passed the Government Employees (Health Insurance) Amendment Act 2008 with all-party support yesterday.

The Fund provides health insurance benefits for government employees, retired government employees subject to certain eligibility criteria, Ministers and Members of the Legislature, and their enrolled dependants.

Enrolment in the scheme is compulsory for all government employees and voluntary for Ministers and Members of the Legislature and retired government employees. However the amendment ended the compulsory enrolment in the Fund of people who have retired from the private sector and then gone to work for Government.

Finance Minister Paula Cox said: "Sometimes the retirees from the private sector seeking employment with Government already have full health insurance coverage in place as a post-retirement benefit from a previous employer and may wish to keep this insurance in force.

"Under the current legislative framework these persons must enrol in the GEHI Plan."

The amendment makes joining the scheme optional for retired private sector employees who come to work for Government in their retirement years and have existing health insurance under the Health Insurance Act 1970.

"They can elect to continue in force their existing health insurance and not join the Scheme."

The Act will also allow an unemployed spouse of a deceased retired government employee to continue to be enrolled in the plan even after remarriage.

Currently an unemployed spouse of a deceased retired government employee is allowed to remain on the plan but upon remarriage he or she loses his or her right to or continue to be enrolled in GEHI.

Ms Cox said: "Clearly Mr. Speaker this is immoral and will be addressed by amending Section 22 of the Act."

MPs also approved the Ministers and Members of the Legislature (Salaries and Pensions) Amendment Act 2008.

The Ministers and Members of the Legislature Pensions Fund (MMLPF) was set up in 1988 to provide retirement pensions for the Ministers, Members and Officers of the Legislature of Bermuda in accordance with the Act.

The amendment allows Government's contributions to remain in the fund when members leave before being eligible for a pension, thus increasing the net assets available for benefits.