Seniors will receive an increase in their pensions of up to $66 per month from September after the House of Assembly approved changes during last night’s sitting.

The Contributory Pensions (Amendment of Benefits) Order will raise pensions by 4.1 per cent, in line with the rate of inflation in the past year.

The basic contributory pension will rise from $1,107 to $1,152 per month and the maximum pension will increase from $1,610 to $1,673 per month.

The increase will come into effect in September.

David Burt, the Premier and Minister of Fniance, said the amendment was part of the Government’s commitment to increase pensions by the rate of inflation every year.

“We recognise the hardship that too many of our seniors now endure due to the rising cost of living and we are committed to doing what we can to support them so they can live the dignified lives they deserve,” Mr Burt said.

“It is important to know it is not just the seniors who benefit from an increase in pension but also those persons who are disabled and receive disability benefits under the Contributory Pensions Act.”

Mr Burt said that a number seniors did not receive an occupational pension and were reliant on the social insurance benefit as their sole source of income.

He said that reforms of the pension system to move it from a fixed-rate contribution to one based on per cent of income would be brought to the House in the next Parliamentary session.

Mr Burt added: “It has been regularly discussed that the contributory pension fund and the public service superannuation fund pensions are underfunded and, if there are no changes made, will, like many pension funds around the world, run into difficulty if reforms are not urgently undertaken.

“This means that for many Bermudians, unless the Government acts, there will not be the space for benefits in the future.

“What is important to note is that this government is taking action.”

He said the reform work was intended to sustainably address the deficit and ensure future benefits for the public.

“Once that work is finalised, increases to pension contribution levels will form one part of the reforms to ensure this fund is sustainable,” Mr Burt added.

“Yes, I know that it is hard to hear that there will be increases but the fact is that if there is no action taken, then there will be no sustainable pensions and that is not something that this government will allow.”

Jason Hayward, the Minister of Economy and Labour, said the increase was another example of the Government’s ongoing commitment to the island’s seniors.

However, Scott Pearman, the Shadow Minister of Legal and Home Affairs, said the state of the island’s pension system was worrying.

“The fact that there will be monies coming into that fund doesn’t erase that shortfall,” Mr Pearman said. “The question is will the monies come in cover the shortfall, and the answer is no.”

He welcomed “much needed” reforms of the pension system and urged a bipartisan approach.

Mr Pearman said: “That reform is not going to be welcomed because you have to find that shortfall somewhere.”

Craig Cannonier, the Shadow Minister of Works and Engineering and Tourism, said the pension system has been strained by the island’s “dwindling population” and more work must be done to solve that issue.

“The whole of Bermuda know this,” he said. “They are feeling it. We need to come to a solution to this here.”

Mr Burt responded that the Government would make the decisions necessary to protect seniors today and in the future.

He said the record of the OBA and the PLP showed a different approach taken by the two parties while in office.

“One pension increase by the party opposite in 55 months and today this government will be delivering its fifth ensuring that our senior’s pensions will keep up with the rate of inflation.” he said.

“That is what the electorate voted on us to deliver in 2017 and that is what we will continue to deliver.”