Concerns were again raised about the performance of the Government pension fund during a housekeeping measure to increase payouts in line with inflation yesterday.

The pension rises are backdated to July and are dependant on when an individual?s pension started with the rises ranging from one percent to seven percent.

Pensioners whose pensions began before June 30, 2002 get seven percent with rises diminishing for more those who retired more recently.

The rise affects retired politicians, policemen, teachers, prison officers as well as other former Government employees.

The measure had all-party support yesterday but Opposition leader Grant Gibbons expressed concern about the long-term health of the Government pension fund.

Announcing the changes Finance Minister Paula Cox said the increases will result in the Public Service Superannuation Fund paying out an additional $1.8 million in pensions a year.

Dr. Gibbons said inflation was going up appreciably with a 3.9 percent rise last month which is pressuring the pension funds.

He said the Auditor General had drawn attention to the fact that the Civil Service Superannuation Fund was out of balance and in 2002 benefits paid out had exceeded contributions by $11 million a year.

He said the fund had to be topped up by the general consolidated fund which had already written off $35 million but once again the pension fund was in debt to the consolidated fund for $22 million.

Dr. Gibbons has been calling for an actuary to take a closer look before the taxpayer had to again bail out the fund.

?It?s important to get the benefits and the contributions in some sort of balance.

?I am very concerned about the assets of the funds.?

He said in 2003 assets available for benefits stood at $213 million but a year before it had been $267 million.

And he said assets in 1998 were $235 million ? still higher than last year?s figure.

?There should be some real questions asked about the management of this fund in the last few years.?

Government backbencher Derrick Burgess said it was time to consider raising the retirement age to help address the shortfall in funds.

It would have other benefits too said Mr. Burgess.

?We have many people who have gone 65 who are brilliant. We should not be sending them home.

?We?ll be begging people at 65 to stay in the workforce because we don?t have replacements.?

He said the stock market was doing badly with younger workers in high risk schemes actually recording losses rather than seeing the steady growth typical of the Clinton years.

Mr. Burgess said laws should be made harsher for employers caught not paying into pension funds.

Replying to the speakers Ms Cox said there had been problems with the fund since its inception but it was under review from actuaries while other methods were also being looked at to increase its performance.