Bermuda’s economy is wallowing in the fifth year of a devastating recession. Local workers, who are employed, will have serious concerns about the viability of their jobs in a still uncertain future.Workers made redundant may have had to use every resource at their disposal for financial survival, including pension hardship withdrawals. Their accumulated pensions may still represent a bright spot on the horizon of financial security.In the February 16, 2013 Royal Gazette article entitled: “Time to Check Your Pension”, we introduced the steps you need to take for the annual review of your Bermuda pension. We stress now that reviewing monthly is preferable because your final pension may represent the most important component of your financial plan at retirement due to its final accumulated value.I say ‘may’, because you must do your part to be sure that your pension is handled carefully, invested appropriately, and the amount you and your employer contributes is actually been deposited.Your monthly review uses simple math and is easy to do — even with your pension account online access.Take the beginning balance (ending balance from month before), add in your employer and employee contributions, then also add (or subtract) investment market increases (decreases) for the new month end balance.To calculate what your contribution and employer match should be, take five percent of your gross monthly pay — not the amount you take home.Do the amounts match?Frankly, the loss of even a few dollars due to investment market deterioration in a pension fund is intolerable, but sometimes understandable, if unrealised decline in values eventually reverse (more on that in the next article).However, an individual who discovers that an employer has taken money from hard-earned paychecks and failed to deposit these monies (held in trust) into his/her pension accounts receives a double whammy, the loss of the funds, and the lost investment appreciation opportunity.Regrettably, we have heard anecdotal evidence plus actual feedback recently that individuals who checked their pension statements have found that even though their employer has withheld the pension contributions from their wages, their individual pension accounts are not reflecting the cash transfers.Employees have shared confidentially, that they are absolutely cannot confront their employer about these discrepancies, fearing that they may lose their job — a scary thought in this job-scarce economy.Whether you are fearful or outraged about your pension deposit shortfall, or just need confirmation that your employer might have been simply late in paying, you do have recourse to have your personal pension matter investigated.Confidential, anonymous help is readily available from the offices of the Pension Commission.Contact their office at 295-8672, or visit them at Wessex House, 45 Reid Street, Hamilton HM 12.The Pension Commission, headed by CEO, Peter Sousa, whose mission statement is “to protect beneficiaries in Occupational Pension Schemes under the National Pension Scheme (Occupational Pensions) Act 1998” possesses powerful authority and many resources at their disposal in furtherance of their prime duty.The Pension Commission’s function is to:— administer the Pension Act and the regulations— vet applications for new pension plans— ensure compliance, by pension plans, with the regulations— monitor the administration, and funding— enforce the provisions of the Act and the regulations in respect of such administration and funding— verify the payment of pension benefits— promote public education on pension plans and their benefitsThe Commission reports to the Minister of Finance on regulations, laws and related matters. Most importantly, the Pension Commission is charged to investigate complaints relating to a pension plan and a pension fund.The Law is on your side where the Act has been contravened.Under the Act, offences, penalties, and orders for repayment, Item 67 the punitive measures are:(4) A person convicted of an offence under this Act is liable—(b) on conviction on indictment, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding five years, or to both such fine and imprisonment.Moreover, under 67(5), the convicted individual (company) may (will) be required to make restitution to the fund (individual) for any missing funds.Recent Bermuda legislation as an amendment has further strengthened the Pension Act (68(1) by holding officers, directors, and any other influential individual of a company personally responsible for compliance with the act.Previous to this amendment, a local company could file bankruptcy, dissolve and close the doors — leaving assorted, often large liabilities for benefits to the employees (and vendors) unpaid forever — left in the dirt, so to speak.Then, in a turnabout rather closely timed, a new company (with the same old owners) would be incorporated into being with no debts, no liens, and no liabilities. Presto, the new company can now apply for new loans, and new business without the credit drag of those pesky old liabilities owed, such as delinquent employee benefits. No more. Closing a company will not exonerate any individual person of influence in the company from personal legal and financial responsibility for employee trust liabilities.A conversation with Mr Sousa also revealed that the Pension Commission has (and is) prosecuting employers (found negligent) for non-payment of pension benefits, and “that the Commission has had a successful 100 percent conviction rate.”By the way, if your pension fund has been shorted, you had better check to see if your other employee benefits, such as medical insurance, are covered.If you don’t take care of monitoring your pension, who will?The Bermuda Pension Commission was established to help you, use them.Next up: what do you know about the investments in your pension?Martha Harris Myron JP CPA PFS CFP TEP is a Bermudian, and a cross border financial planning specialist / journalist. Her articles are published domestically and internationally and focus on the challenging financial environment for local and international residents and their families living and working in Bermuda, the premier international financial centre in the North Atlantic Quadrangle: Bermuda, United States / Canada, United Kingdom and Europe. Inquiries to martha.myron@gmail.com