pensions initiative in advance of pending new laws forcing the establishment of pension plans for all local businesses.

The move by Government could effectively create what could be a billion dollar market early in the new century. A second new pension scheme may be announced this week.

Bank officials said that their Compass Pension Trust (CPT) offers: the security of placing pension assets in a trust; an experienced in-house investment management team; a globally diversified pension portfolio for pension plan holders; qualified professional portfolio managers; employee education programmes; professional pension relationship managers to oversee the entire running of the account with each company; the ability to access the payroll to pension in one step; a dedicated service desk; and, superior administrative capabilities.

CPT vice president Bruce Pottle said: "The Bank of Bermuda is one of the largest administrators of pensions funds in the Far East and has been for over a decade. We have sophisticated systems that have been tested and proven in a very competitive environment.

"Essentially, it can make the management of a pension plan virtually hassle-free for the company. A company does not have to bank with us to use this plan, but if it does, the process is even simpler. We offer a payroll-to-pension plan in one easy step.'' He said the bank operates some 10,000 pension funds in the Far East, representing about $1.7 billion under management.

CPT assistant vice president and manager Karen Hendrickson, said, "The bank's investment managers and our pension fund and actuarial consultants have designed a comprehensive process for the construction of personalised pension portfolios.

"The ultimate objective of CPT is to provide our clients with the highest rate of return on their pension assets, consistent with their risk profile.

Our investment management professionals will seek to meet this objective through the use of industry recognised risk management techniques.

"The CPT will be investing in premier mutual funds according to each employees asset allocation, determined by their age, risk tolerance, investment goals and by the global market expectations of our experienced investment team.

"Each portfolio will include a wide range of premier mutual funds, including, but not limited to, the Bank of Bermuda's funds. Only the best performers will merit inclusion in CPT pension plan portfolios.

"But most importantly, our investment professionals will closely monitor the on-going performance and make adjustments where necessary. In addition, a regular formal review of each portfolio's performance will be done with comparisons to recognised relevant benchmarks.'' Pension contributions may rise to an estimated $120 million a year once all Bermuda workers are required to join a scheme.