Social insurance payments to be made on sliding scale based on earnings: Throne Speech
Social insurance payments will be made according to a sliding scale based on what a person earns, according to yesterday’s Throne Speech.
No details of how the changes would impact individual contributors were stated, and the One Bermuda Alliance said it was “not prepared to confirm its position” on the overhaul.
The Throne Speech read: “The state of the Island’s pension funds must be sensitively and prudently addressed.
“Unfunded liabilities must be confronted, and social insurance contributions made progressive.
“For too long Bermuda has been an international outlier and our social insurance system must be made to conform to ideals of equity.
“Therefore, the Government will introduce amendments to the Contributory Pensions Act 1970 to make provision for a sliding scale in contributions, based on salary earned and not a uniform contribution irrespective of income.
Cole Simons, the One Bermuda Alliance leader, said his party did not have a view on the proposed social insurance changes.
When asked if he thought the planned reforms were progressive, or could prove detrimental to people who pay-in less, Mr Simons told a press conference: “We take the view that it is worth examining, and so we as a parliamentary group are going to caucus on that issue.
“We are not going to say yes or no. We believe it is something that is worth further examining and at this point we are not prepared to confirm our position on that.”