Public Service Superannuation (PSSF Stabilisation) Amendment Act 2025

What this bill does

This bill makes major changes to Bermuda's public service pension system to prevent it from running out of money. It gradually increases how much government employees pay into their pensions, raises retirement ages across different job categories, and changes how pension benefits are calculated.

If passed (voted YES)

• Government employees will pay higher pension contributions starting October 2025, increasing from current rates to as much as 11.5% of salary by 2027
• Retirement ages will gradually increase - regular civil servants from 60 to 65 years old, teachers from 65 to 70 years old, and police/fire/prison officers will see smaller increases
• Pension calculations will be based on longer salary averaging periods (eventually 10 years instead of current shorter periods), which typically reduces benefit amounts

If rejected (voted NO)

• Current pension contribution rates stay the same, meaning employees keep more of their paychecks
• Existing retirement ages remain unchanged, allowing people to retire earlier than proposed
• The pension fund continues operating under current rules, but may face financial difficulties requiring government bailouts

Who it affects

This directly impacts all current and future Bermuda government employees including teachers, police officers, firefighters, prison officers, civil servants, and Bermuda Regiment staff. It also affects taxpayers who may have to cover pension shortfalls if the fund becomes unstable.