Contributory Pensions Temporary Amendment Act

What this bill does

This bill allows workers, employers, and self-employed people in Bermuda to temporarily stop paying their mandatory pension contributions from July 1, 2020 to June 30, 2021. It was designed as emergency relief during the COVID-19 pandemic to help people and businesses keep more money in their pockets during financial hardship.

If passed (voted YES)

• Workers can choose to stop paying into the government pension system for one year by notifying their employer in writing
• Employers can suspend their portion of pension contributions with employee agreement, providing immediate cost savings for businesses
• Self-employed people can pause their pension payments by notifying the Department of Social Insurance, freeing up cash flow
• People who suspend payments can voluntarily make up the missing contributions later if they choose

If rejected (voted NO)

• All workers, employers, and self-employed people must continue making their regular pension contributions as required by law
• No temporary financial relief from pension payments during the economic difficulties caused by the pandemic
• Businesses and individuals cannot reduce their mandatory contribution expenses during this period

Who it affects

This affects all working Bermudians - employees, employers, and self-employed people who normally pay into the government pension system. It particularly benefits those facing financial hardship during COVID-19 who need to preserve cash flow.