MPs passed new legislation early this morning.

In a late-night session at the House of Assembly and a six hour debate on the issue, MPs passed the National Pensions Scheme (Occupational Pensions) Act 1998.

It will now be considered by the Senate.

In what is described as an historic act, it provides for every worker in companies where there are Bermudian staff to have a pension scheme -- additional to the Government provision.

Starting in 2000, and phased in over five years, employees and employers will eventually pay a minimum of five percent each of the salaried income to a pension fund.

That would then be managed and invested, via strict controls from a Pensions Commission, and enable workers to have a reliable income when they retire.

As a requirement the fund will be held separately from company assets and they will be portable.

Finance Minister Grant Gibbons said there was a need for people to look beyond the normal contributory pension and provide a safe income in their retirement.

And he said funds invested in insurance companies, for example, could earn high returns. In addition they could stimulate the economy as monies were invested in local shares. All existing pension schemes, whether they were registered or not, would have to comply with the act.

The legislation gained support from the PLP but there were fears from MPs Derrick Burgess and Ottiwell Simmons about non-Bermudians who would miss out on a pension if they were employed in companies where there were no Bermudian workers.

Mr. Simmons feared those workers would effectively have no pension rights.