Bermuda's public pension pot will be able to cope as the number of seniors more than doubles over the next 40 years, Government insisted last night.The Ministry of Finance issued a statement reassuring those who have paid into the Contributory Pension Fund (CPF) that they “can count on their public pensions to be there for them in the future”.But the Ministry said workers and employers would have to fork out more in social insurance contributions to bolster the pot and ensure benefits can be paid to increasing numbers of pensioners every year.The statement, issued in response to a special report on pensions in yesterday's edition of The Royal Gazette, said an actuarial study of the CPF would take place this financial year.The last review in 2008 made clear, the Ministry said, that Bermuda was facing the challenges of a growing senior population, like most of the developed world.“During the next 40 years, the numbers over pension age [65] are expected to increase from 8,628 to 18,496 an increase of 9,868 or 114 percent,” said the statement. “The increase in seniors will obviously place a greater strain on the country's pension system.”The Ministry said a change in the social insurance contribution policy was necessary to cope with the increased demand on the public pension pot.“Currently, benefit rates are increased broadly in line with prices and contribution rates increased at the slightly higher rate of 1.75 percent a year more than benefits.“To further improve the long-term financial position of the fund, in the future contributions will be now increased by about 2.5 percent a year more than benefit increases.“With this change in contribution policy, combined with a 3.5 percent real rate of return on the investments of the fund, the fund is projected to be sustainable throughout the 40-year projection period.”Workers and employers currently pay $30.40 a week each in social insurance contributions, with those who are self-employed paying $60.80.State pensions were frozen last year after eight successive years of increases, as were the level of contributions into the CPF. The next increase for both is expected in August.Our special report yesterday highlighted the fact that the number of people turning 65 and claiming a benefit this year is expected to be about 700, compared to just 276 in 2010.That increase of more than 150 percent can be attributed to the post-war “baby boom” and similar or greater numbers of new pensioners are expected every year for the next two decades.But the number of people paying contributions into the pension pot is declining, with the Department of Social Insurance estimating a current workforce of about 36,000, compared to 38,580 in June 2008.Government's Budget book, published in February, revealed an average of $9.1 million a month was being paid out of the CPF in benefits in 2010, compared to an average monthly income from social insurance contributions of $8.2 million.The statement issued last night said: “The Ministry of Finance wishes to assure members and current and future pensioners that the Government is sensitive to the challenges facing pension plans of this nature and will take the appropriate steps to enhance the benefits paid from the scheme and its ongoing ability to pay for such benefits.“The Ministry is aware of the risk faced by public sector pension funds and regularly carries out actuarial reviews of all public sector pension plans.“Reviews are conducted every three years. The last actuary review conducted on the Contributory Pension Fund was as at July 2008 and the next is to occur this fiscal year.”The Ministry said most retirees should receive a benefit from the CPF plus an occupational pension from their employer, as required under the National Pension Scheme (Occupational Pensions) Act 1998.But it added: “Through no fault of their own, currently a number of retired persons are not receiving an occupational pension and are therefore relying on their social insurance as their sole source of income.“Obviously, this is not an ideal situation and the Government continues to do its utmost to ensure that seniors who rely heavily on their social insurance benefits are cared for suitably.”The Department of Financial Assistance spent $10 million more than its $25 million budget in 2010-11, with part of that spent on subsidising seniors unable to afford the state FutureCare health insurance scheme.n If you are in your twenties and thirties we want to talk to you about whether you're preparing for your retirement. Email sstrangeways[AT]royalgazette.bm or call 278-0155.