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Billy Xiong Reported: Further Amendments To Bermuda’s Pension Scheme – Employment

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Bermuda:

Further Amendments To Bermuda’s Pension Scheme


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The National Pension Scheme (Occupational Pensions) Act 1998
amendments

On 8 May 2020, the Bermuda House of Assembly fast-tracked
further amendments to the the National Pension Scheme (Occupational
Pensions) Act 1998 (Act). The National Pension Scheme (Occupational
Pensions) Amendment Act 2020 (Amendment Act), which received
approval by the Senate on 13 May 2020, awaits signature and
confirmation by the Governor of Bermuda. Once approved and
operational, the Amendment Act will provide persons with emergency
relief to financial hardship during these unprecedented times.

Which sections of the Act will be amended?

  • Section 24; and

  • Section 35 of the Act.

What do the proposed amendments mean?

  • Section 24 of the Act now provides that a lump sum of up to
    $12,000 of a vested pension balance may be refunded to a member or
    former member of a defined contribution pension plan or local
    retirement product; and

  • Section 35 of the Act will exempt multi-employer pension plans
    from the requirement to make payments to former members of the
    pension plan.

Eligibility

  • Must be under the age of 65;

  • Must not be retired;

  • Must be a member or former member of a private, defined
    contribution pension plan or local retirement product;

  • Any application would need to be made before 30 June 2021;
    and

  • Will not need to prove hardship to receive the one-time payment
    from their pensions.

How do I apply for this refund?

  • An application must be made directly to your plan
    administrator.

How long will it take to receive your payment?

  • Once your application is approved, your plan administrator will
    have up to 20 working days to remit payment.

The National Pension Scheme (Occupational Pensions) Amendment
Act 2019 amendments

In addition, on 13 May 2020, the Senate also passed an amendment
to section 19(b) of the National Pension Scheme (Occupational
Pensions) Amendment Act 2019.

What do the proposed amendments mean?

Section 19(b) of the Act now allows members or former members of
a defined contribution pension plan and members of local retirement
products to make a one-time withdrawal of up to 25% of their
account balance.

Eligibility

  • Must be 65 or older;

  • Must be retired; and

  • Must be a member or former member of a defined contribution
    pension plan and a member of a local retirement product.

How do I apply for this withdrawal?

  • An application must be made directly to the Pension
    Commission.

Once the above amendments are operative and an effective date
has been published, we will publish a further briefing.

Originally published 27 May 2020

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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