The lump sum a public sector retiree can withdraw from their pension is going to be subject to review; the Premier encourages retirees to consider the fact that people are living longer
Be careful about making a short-sighted decision with your pension.
This from Premier and Finance Minister David Burt, concerning the retirement funds for public sector workers.
Bermuda Broadcasting is aware of concerns among some retirement-age public sector workers, including teachers, that the lump sum withdrawal they can take out of their pension fund may change.
This would affect those retiring after the end of March 2027, as public sector pension reform begins a decade-long process to progressively raise retirement ages by 5 years, and increase contributions by 2%.
As of now, public sector retirees can opt to reduce their future pension by up to 75% and take out a lump sum, equal to “eleven and one-half times the amount of the annual reduction” (source: PUBLIC SERVICE SUPERANNUATION ACT 1981).
Responding to our questions today, the Premier confirmed that the calculation determining the lump sum is going to be subject to review, but the total pension due to a person will not change.
Gary Foster Skelton questioned whether there could be an exodus of some older public sector workers, due to concerns that they will not be able to take out as large a lump sum as they had previously expected.
Premier Burt said that Government is meeting with all concerned public officers to help them understand the changes, and he encouraged retirees to carefully consider the fact that people are living longer.
He also stressed that all of the reforms have been made to ensure the pension fund remains stable into the future.
WATCH the interview above.
