Allowing hard-up tenants facing “imminent” eviction to tap into their pensions to pay off rent arrears is a “sensible” plan, according to Premier Paula Cox.The Finance Minister told the House of Assembly the current economic crisis was continuing to place financial stress and strain on the shoulders of the long-term unemployed and was “very often unbearable”.She said the National Pension Scheme (Financial Hardship) Amendment Regulations 2011 struck “the right balance between allowing plan members access to their private sector pension funds under extreme hardship conditions while at the same time providing some protection in ensuring that plan members receive a decent pension when retiring”.But Shadow Finance Minister Bob Richards said the measure, though necessary, was a stark indicator of the dire state of the economy.“If anybody had any doubt of the trouble this country is in, this is an example of that,” he told MPs on Friday.Ms Cox said the Island’s mandatory occupational pension scheme, which began in 2000, had an estimated 25,980 members as at June 30.Citing statistics provided by the Pension Commission, she said there were:l2,930 defined contribution plans and 20 defined benefit plans;labout $1.7 billion of assets in employer plans as at December 31, 2010;labout $239.3 million of assets in domestic individual prescribed retirement products as at December 31, 2010;l593 self-employed plans;lsix approved third-party plan administrators; andl11 financial institution pension plans registered, containing approximately 95 percent of all plan members.Ms Cox said since the law was amended last August, scheme members had been able to apply to access their plans for medical expenses, mortgage arrears and school fees.She said 154 applications had been received and 88 of them were successful, with more than $770,000 dished out from the scheme.The Pension Commission gives approval for such withdrawals and pays the money directly to the third party and not the member.“It is pleasing to see that these regulations have assisted persons in their time of need,” she said. “We have now had about a year of monitoring.“Based on the need, the Government has responded by amending the National Pension Scheme (Financial Hardship) Regulations with an additional criterion of hardship.“The amendment, once passed, will allow persons to make a request to access their private pension plans where they have significant rental arrears that place them at risk of eviction.”Ms Cox said approaches had been made to the Ministry of Finance and the Pension Commission from those seeking relief through access to their private sector pension plan.She said the Pension Commission researched the idea and discovered other jurisdictions, including the US and Canada, allowed hardship withdrawals.“It must be recognised that Bermuda is one of the few jurisdictions in which the provision of occupational pension plans is mandatory,” the Finance Minister said.“Therefore, when persons currently unemployed re-enter the workforce they will have the opportunity to replenish their retirement benefit. It should also be noted that persons can make voluntary contributions to their pension plans.“Honourable members are reminded that these Financial Hardship Regulations provide various checks and balances to ensure plan members do not abuse this proposal or apply to withdraw the majority of their pension benefit accrual.”Ms Cox said the maximum amount that could be refunded was 20 percent of the account balance on the application date and people could only make two withdrawals in a lifetime.The Premier added: “This year the Ministry will conduct a review to determine whether public and private pensions are set at appropriate levels.”The regulations were approved after a lengthy debate by MPs.One Bermuda Alliance MP Mr Richards said no one could object to the amendment.“We have to recognise that there are people out there that are hurting,” he said. “While we have a duty to provide for long-term needs, clearly immediate needs, in so far as individuals are concerned, are considerably more pressing.”But he said it was unfortunate MPs were once again having to approve such exceptions and a telling statement about the country’s finances.“We were here last year talking about the same thing and making a different set of exceptions. Now, much to a lot of our astonishment, we are here again making an exception for something else. It’s another aspect of the same problem.”He said Bermuda’s poor economy was impacting ordinary folk and making life very difficult for them.“People can’t meet their obligations, whether the obligation is an obligation of mortgage or to educate your child. Now we have an obligation of people just trying to pay their rent.“I just hope in another six months, or another 12 months, we don’t come back here for something else. If we do, it means our economy has gotten worse.”Mr Richards said Government needed to consider the reasons why it was needing to make such changes to the law and accept that it wasn’t because of some “evil world outside of the borders of Bermuda”.Those in charge of the country didn’t want to take any blame, he added, but the facts were clear. “One can’t get too excited. The reason why we are here is not a good reason.”Youth, Families and Sports Minister Glenn Blakeney said the Government was well aware of the challenges it faced and was constantly looking for solutions.“We don’t have all the answers but when we do come with some answers we hear the criticism,” he said. “It’s just a futile exercise and it’s so contradictory when they do this.”He added: “This Government is working. Do we get it right every single time? No. But we continue working. We don’t have a magic wand that we can wave.”United Bermuda Party MP Charlie Swan said the legislation could not be disagreed with and was a “sensitive response” to an issue that would quickly address people’s needs.He mentioned a $100 fee for those applying to access their pensions and suggested this should be waived.Government backbencher Marc Bean said he was pleased with the legislation because a constituent of his was in the exact circumstances where he needed to access his pension to pay his rent.He said while it was “wise and prudent” to put away $100 to pay for next year’s groceries it was “even more wise and prudent” to be able to access $20 of that to feed one’s belly now.“That’s the impact of the regulations,” said Mr Bean. “When it rains, it just doesn’t rain on one person.”He said Mr Richards made it sound like it was Government’s fault that people were in need and Government was now trying to take credit for offering the solution.“I consider that to be deceptive,” he said. Mr Bean added that the “so-called fiscally conservative Opposition” needed to explain whether it thought Government should be providing all jobs for citizens.“We are coming up with some talk as if we are all communists,” he said. “Are we communists or are we not? If we are not communists, then it certainly can’t be the Government’s complete fault.”He said the PLP Government had “certainly” made some mistakes over the past 12 years but people shouldn’t fall for the Opposition’s “politricks”.Mr Bean, his voice rising, said Opposition members couldn’t even relate to what it might mean for pensioners to get a three percent increase this year, another measure approved in the House on Friday, or to need to tap into a pension to pay rent.“Who feels it, knows it,” he said. “When you are poor and suffering, I don’t care if it’s the ‘boom boom’ of the economy, you are still going to be poor and suffering.”He said people were living in tents in 2004, when Bermuda was said to be prosperous. “A man may live 80 years in this world and never know ‘sufferation’,” added Mr Bean.Opposition Whip Shawn Crockwell said Mr Bean often “got up on his soapbox” to talk about how MPs on the opposite side of the House didn’t understand hardship.“He has not walked in my shoes,” said the OBA MP. “We need to not make this personal.”He said a characterisation of the Opposition as “uncaring and non-compassionate” by PLP MPs was made repeatedly in the House and was wrong.Mr Crockwell said: “There is a difference between supporting these regulations and commending them.”His party supported the necessity of the regulations, he said, but couldn’t commend them because of the reason they were needed: poor fiscal management by Government.Health Minister Zane DeSilva said: “We’re not ashamed to bring in this change. We know people are in need. Some people are struggling and need to be fed today.“We’re in difficult times and we are a sensitive and caring Government.”Shadow Public Works and Housing Minister Mark Pettingill said the Government needed to be accountable for its “transgressions and the error of its ways”.The OBA MP said: “Please don’t stick your chest up in the air and bang it like Tarzan as if you’re doing something wonderful.“You’re only doing this out of necessity because of the mess you’ve contributed to.“It’s grossly offensive to hear the same words being repeated. I keep hearing the same words being spouted; it’s the world economy.“Nonsense, it’s not the world economy. Let’s get real about this wonderful thing you are doing for our people, you’ve contributed to having our people in this situation.”Mr Pettingill said any “sensible” Government would have prepared for the future rather than “just rushing in after we’ve done nothing”.He said: “The fact of the matter is that we are passing this legislation because the Government overspent when it was warned not to and because Government borrowed too much money.“Don’t you dare say it’s the world economy and try to shift responsibility with a glossy paint job.”But Ms Cox said she was fed up of “listening to poppycock” as she accused the Opposition party of “getting on their high horse”. She said the Opposition should cast its minds back to previous Auditor General books.Ms Cox said: “It’s easy to be preachy and pompous, but let’s have a reality check here. The Opposition is acting with arrogance, like they have clean hands.“If we are going to focus on issues of wastage, then we only need talk about the records.“So don’t start talking as if you are holier than thou. If you want to start throwing stones, you need to make sure you don’t have any windows.”Ms Cox said Government had not said everything was down to the economic downturn but it was “certainly a contribution”.She added: “This Government realises we have to be sensitive to the needs of people. You have to use the tools at your disposal and use them in a dynamic fashion.”