Premier and Finance Minister Paula Cox pledged a thorough review on pensions and health care after labelling them the hottest issues facing the Island.

Ms Cox yesterday acknowledged the future difficulties facing many seniors as MPs passed draft orders increasing pensions for retired civil servants, MPs and senators by four percent with no rise for retired non-public sector workers.

“If you were to flag the hottest issues going forward as policy makers, the two hottest issues I see are pension arrangements and health care,” Ms Cox told the House of Assembly.

“Those two are the biggest issues for my Government to deal with. A thorough review is certainly one the Government embraces and wants to move on.”

Louise Jackson, the United Bermuda Party’s spokeswoman for seniors, had raised concerns the average elderly person off the street would now fall further behind as they won’t be covered by the Pensions (Increase) Order or Pensions (Public Service Superannuation Act 1981) (Increase) Order.

The average benefit for retired civil servants and public sector workers, which is tied to cost of living increases, will now go up $705 to $18,352 a year, while for retired MPs and Ministers it will go up $1,379 to $35,857 a year.

However, non-public sector workers’ pensions are not tied to cost of living, meaning they stick at $8,095 a year.

“It’s not a happy thing when Joe Blow Public sees retired parliamentarians and civil servants will be getting an increase and they are not,” said Mrs Jackson. “It does beg the question of whether this should be realigned.”

Ms Cox also said MPs are not as well paid as many people think and that many rely on their pensions when they retire.

“We have to be careful not to fuel the thought that Ministers and MPs are getting off scot free. Many times they are undervalued,” she said.

Shadow Finance Minister Bob Richards backed the order but said retired public sector workers and MPs are lucky their employer takes all the risk with their pensions, unlike people who don’t work for Government.