unwelcome shock.

But a national pension plan proposed by Finance Minister the Hon. David Saul has support from the Chamber of Commerce.

And Dr. Saul, who spoke about pensions in a breakfast speech this week, feels everyone will come on board once the scheme is fully explained.

The Throne Speech promised a discussion paper on pensions would be brought to Parliament in the current session, "aimed at providing for the widest possible input on an issue of tremendous significance to every Bermudian''.

Legislation will be brought forward in the next session, Dr. Saul told The Royal Gazette.

Dr. Saul has said that the Government pension, which pays about $700 a month, is only intended to supplement private plans. But half of Bermuda's 32,000 workers are not covered by a private pension scheme. And half of the 16,000 workers who do have pensions are enrolled in plans where the funds are not properly protected.

The Finance Minister favours a plan similar to the health insurance scheme.

Employers and employees would each make contributions. And while large companies would need trustees to separately manage their pension funds, small employers and self-employed people like taxi drivers could make use of a Government scheme, similar to the Health Insurance Plan.

Pensions would be staggered in over time, with combined contributions likely starting at one percent of salary and gradually increasing to five percent.

And when employees move from one job to another, they can take their pension contributions with them.

A Pension Commissioner would vet new plans, and there would likely be a "grandfather clause'' to allow existing plans to continue.

Most owners and managers of small businesses interviewed by The Royal Gazette this week said they are opposed to the increased cost of mandatory pensions.

"It would destroy some small businesses, because our profit margins are very slim in the past five years,'' said Mr. Ken Constable, who owns two King Midas Jewelry Ltd. stores in Hamilton and St. George's, but recently closed two others.

"I think it should be left up to the individual businesses,'' Mr. Constable said. "They're the ones that know whether they can afford it.'' Mrs. Marcia Adderley of Flatts Mens Wear and Gift Shop said she wants to study Dr. Saul's proposal. But her initial reaction was not positive.

"It's just another burden,'' she said. Bermuda's retail business is "not like it used to be. You have to really struggle to keep your head above water.'' And at The Bee's Knees gift shop on Front Street, manager Mr. William Frith, Jr. said mandatory pensions would be an unwelcome "added cost''.

High turnover in the retail industry would complicate matters, he said. "It's just another cost, like the hospital levy, and the insurance, and everything else,'' Mr. Frith said. "Quite frankly, we already have a deduction for (Government) pensions.

"If Government is incapable of maintaining a pension plan, then why should the businesses? It's the businesses in this Country that are paying all the costs anyway.'' Pension shock Continmued from Page 1 Not all small businesses oppose the plan. Mr. Raymond White, owner of the Theatre Cafe in Hamilton, said many restaurants, his included, already take part in a pension plan through the Bermuda Industrial Union.

"The average person reaches the age of 55 or 65 long before they realise it's coming so quickly,'' Mr. White said. "This would be a sort of forced savings plan.'' Mr. Robert Rego, president of the Chamber, said his organisation is concerned about extra costs for businesses, especially small ones. However, "it's very important that people have something other than the Government pension,'' he said.

"Something does have to be done. The benefits obviously will be derived by our children when they retire.'' Mr. Rego estimated that less than half of the Chamber's 650 members have their own pension plans.