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New computers will beat pension fraud

rogue employers who still fail to pay their share.A new computer system in the Government pensions department would make it easier to track down those companies, both large and small, which continually didn't meet their contributions,

rogue employers who still fail to pay their share.

A new computer system in the Government pensions department would make it easier to track down those companies, both large and small, which continually didn't meet their contributions, it was claimed in the Senate yesterday.

But Opposition Senate Leader Milton Scott said it was time to introduce a better system of checking to reduce fraud. "They are stealing from employees,'' he said.

And he revealed that it wasn't just small businesses that were not stumping up.

"There are a lot of reputable companies who are not forwarding contributions,'' he said. "Computerisation would help if they are not paid.'' Sen. Walwyn Hughes (Ind) highlighted the fact that some people had taken the matter through the courts after discovering contributions had not been made, but said it was a lengthy process.

He was speaking as the Senate approved the draft order entitled the Contributory Pensions (Amendment of Contributions and Benefits) Order 1998.

The legislation allows for a three percent increase in pension contributions and benefits.

The Contributory Pension Fund -- which provides pensions for Bermudians over 65 and other benefits -- is currently worth over $500 million and has a yield of 12.2 percent. Around 7,500 people are in the fund.

Sen. Alan Marshall (UBP) said: "The fund is healthy when many countries are having severe funding difficulties with theirs.'' And Community Affairs Minister Yvette Swan said she hoped the three percent rise would reach the senior population.

Some companies, she said, set their own pension levels for retirees and she wanted to make sure that the extra was not lost in any amount they subsequently set.

Sen. Terry Lister (PLP) said a PLP Government would look at all pension payments.