Legislation requiring self-employed workers to enrol in a pension programme was passed with little debate in the House of Assembly on Friday night.

The legislation mandates that people between the ages of 23 and 56 working for themselves for more than 720 hours or earning more than $20,000 each year must enrol in scheme and report to Government.

The legislation proposed that the maximum required annual contribution be $5,000 -- a percentage based figure -- effectively setting a cap on pensionable salary at $50,000.

Shadow Finance Minister Grant Gibbons said that the regulations were unfair to "normal'' employees whose maximum pensionable salary is $200,000.

Finance Minister Eugene Cox said that additional contributions to the pension beyond the required annual minimum could be carried over into future years, but would not be available as cash when self-employment is terminated.

A second piece of legislation is set to outline the requirements of pension managers.

Dr. Gibbons wondered whether enough information was being put out to help prevent people making foolish decisions with their pension investments.

But the Minister said he was happy that seminars that had sprung up around the Island were showing employees how to craft their investments.

And he said those who complained five percent was too big a chunk to take out of wages should realise they get the money back when they retire.

Allan Marshall (UBP) said the Government should have put in a requirement that five percent of pension funds be invested in Bermudian companies on the local stock exchange.

He said it offered better investment returns than those abroad and would help boost the local economy.

He said: "The Government has no compunction in letting 100 percent of pension money going outside Bermuda to support economies in other countries.'' But the Development and Opportunity Minister Terry Lister said Government had looked at this but found it was a non-starter as there were few shares to be had from local companies.

He said: "Of the 22 Bermudian companies listed on the stock exchange only six traded in August.'' Mr. Lister said he knew from personal experience how difficult it was to buy shares locally and that if pension funds were required to do so they would kill the market.

He said there was nothing to stop pension funds investing locally but he hoped they wouldn't do so in a big way because lack of liquidity would cause problems.