An increase in pensions will come into effect a month earlier than planned, the Acting Junior Minister of Finance said yesterday.

Owen Darrell, speaking in place of Arianna Hodgson, said that the Contributory Pensions (Amendment of Benefits) Order would come into effect on August 16 instead of September.

Mr Darrell told the Senate that the amendments were “a reflection of the Government’s commitment to improving the quality of life for our senior citizens”.

The amendment, announced last week, will raise pensions by 4.1 per cent, in line with the rate of inflation over the past year.

The basic contributory pension will rise from $1,107 to $1,152 per month and the maximum pension will increase from $1,610 to $1,673 per month.

Contributory pensions include benefits for old age, widows and widowers and those with disabilities, while non-contributory pensions also exist for those with old age and disabilities.

Mr Darrell explained that, “through no fault of their own”, retirees were not receiving an occupational pension alongside their social insurance benefits.

This only provided half of the benefits retired workers were allotted, which, according to him, caused much of the population to “barely scrape by” with their funds.

Mr Darrell said: “The Government continues to do its utmost to ensure that senior who rely heavily on their social insurance benefits are cared for suitably.”

An overhaul of the contributions system was announced in last November’s Throne Speech.

The change also follows in the Progressive Labour Party’s platform to “put seniors first”.