A 2.4 per cent increase in pension benefits for seniors has been approved in the Senate.

The increase will be reflected in October 15 payments, with pension deposits to include a retroactive adjustment dating back to August 16.

Arianna Hodgson, Junior Minister for Labour, Finance and Health, said the move was in line with the Government’s commitment to senior citizens.

Bringing to the Senate the Contributory Pensions (Amendment of Benefits) Order 2024, she said: “Currently, a number of retired persons are not receiving an occupational pension and therefore their social insurance benefit is their sole source of income. The situation could be better.”

Ms Hodgson said the maximum pension paid under the Contributory Pension Fund remained about 26 per cent of the median annual gross earnings for Bermudians.

She added: “The purpose of this order is to increase pensions and other benefits under the Contributory Pensions Act 1970 by 2.4 per cent as of August 16, 2024.

“This 2.4 per cent increase in benefits would have a minor negative impact on the CPF.”

The adjustment will raise the basic contributory pension from $1,152 per month to $1,180 per month, and the maximum pension from $1,673 to $1,713 per month.

Ms Hodgson said 14,708 people receive the benefits, with the increase fully covering inflation.

Douglas De Couto, the Shadow Minister of Finance and Economic Development, said the Opposition remained concerned about a lack of progress in pensions reform and questioned the timing of the implementation.

He said: “We would really like to know, does the Government have a date in mind to launch this reform?

“We would like to see the latest actuarial report so we can assess the details.

“The money will run out. It is hard to see if the promises can be met until we see the details. When will be get the actuarial report, when will public be consulted?”

John Wight, an independent senator, asked what the deficit in the fund was and what the increase would add to it.

Ms Hodgson said it was the Government’s intention to implement the changes before commencing a broader review of the Contributory Pension Fund.

She could not provide the CPF deficit, saying a review was ongoing.

Ms Hodgson said: “At this time, the Pension Reform Committee is progressing work and looking at the proposed changes to the existing pension framework for the public service superannuation fund.

“As part of that exercise we are having conversations with the union membership on the planned changes, which have been previously approved by Cabinet.

“It is important to note that the intention is to implement these changes before we commence the broader review of the Contributory Pension Fund. We don’t have all the answers that members would prefer to have, those details are forthcoming.”

She said that the 2023 actuary review was being completed.

She said most jurisdictions had similar systems in place and “this will bring Bermuda in line with a more equitable system”.