Seniors can expect a 1.74 per cent increase in their pensions starting in September after MPs voted to align benefits with Bermuda’s rate of inflation.

The Contributory Pensions (Amendment of Contributions and Benefits) Order 2026 was discussed and approved in the House of Assembly yesterday.

David Burt said the increase in benefits was based on how much Bermuda’s cost of living has risen from September 2024 to August 2025, and would have a “small negative impact” on the Contributory Pension Fund.

Workers and employers will need to contribute an additional 4.25 per cent towards the CPF weekly starting next month to allow for this increase, which pensioners will see from September 15.

Mr Burt, the Premier and Minister of Finance, said the CPF contained $2.36 billion in net assets as of March 31 and the fund is expected to remain sustainable until 2042.

He noted that the Progressive Labour Party increased benefits for pensioners eight times since returning to power in 2017, while the One Bermuda Alliance only boosted pensions once between 2012 and 2017.

Mr Burt said: “It’s important that this government continue its record of striking the right balance between social and fiscal responsibility — the right balance, in our eyes, is to keep faith with the seniors in this country, ensuring that we increase their pensions every year by at least the rate of inflation.”

Douglas De Couto, the Shadow Minister of Finance, said the proposed rise in pensions does not reflect the increase in healthcare and insurance costs in Bermuda and questioned how the Government planned to get more working people to pay into the CPF and other funds.

Dwayne Robinson, the Shadow Minister of Home and Community Affairs, said the One Bermuda Alliance supported the proposed increases, but also wanted “governance for today and for future generations”.

He questioned: “If we continue to govern the way we’re going, what’s going to be left for my son? What’s going to be left for our children in this chamber if we do not continue to put emphasis on sustainability and longevity?”