Controversial legislation enabling first-time home buyers to raid their pension funds for a down payment on a mortgage was steered through the House of Assembly yesterday — despite reservations from a number of government MPs.

The National Pension Scheme (Occupational Pensions) Amendment Act 2024, brought by junior finance minister Jache Adams, was backed by 17 government MPs when it came to a vote, with four opposition MPs against it along with two government MPs: Curtis Dickinson and Scott Simmons.

The Government’s Anthony Richardson gave it lukewarm support.

He said: “There needs to be lots of education around this matter. We have to be careful when extolling the benefits of homeownership. If you’re going to withdraw your pension, you do so with education and understanding.

“There are dangers ahead. It’s not a red light, it’s an amber light, which means proceed with caution. You can’t just do it willy-nilly.”

Deputy Speaker Derrick Burgess also admitted to some initial concerns, adding: “If you have to borrow for a down payment, you’re doing it wrong. You’re doing it wrong from the start. I don’t believe people should touch their pensions.”

Nevertheless, Mr Burgess backed the Bill when it came to the vote.

Government backbencher Christopher Famous recalled how previous generations had been able to buy “a piece of the rock” without having a high-paying job.

The Devonshire East MP acknowledged that times had changed, with would-be homeowners having to “borrow money at extortion rates to leave something for your children”.

For the Opposition, deputy leader Ben Smith accepted that there were instances, such as the Covid-19 crisis, when people had to dip into their pensions — but that those were exceptional circumstances.

He said: “We have to stop our people from getting on a plane and never coming back because they can’t afford to be here. Dipping into their future comes with a risk.”

David Burt, the Premier, described those comments as “depressing and condescending”.

He said: “They are transferring savings from one asset to another asset.

“Many people are living with their parents. In the name of progress, we are giving citizens the tools they need to aspire to have something that many people want to have — homeownership.

“Let’s dispense with those bogeymen words.”

One Bermuda Alliance MP Robert King referenced earlier comments by Mr Dickinson, stating: “If you have a broken leg, do you go to carpenter or an orthopaedic surgeon?

“We are being asked to ignore the advice of a professional with a high reputation.”

Craig Cannonier said he understood that the Government needed to find “creative ways” to help Bermudians get onto the property ladder.

However, the Shadow Minister for Public Works cautioned: “It’s difficult out there and I understand this creative idea, but we might not know when the next Covid is going to strike us.”

He added: “Are we going to bet on the future?”

Scott Simmons, for the Government, closed the debate by admitting that, when he first read the Bill, he “wasn’t too pleased”.

He said: “I would like to see stipulations in place for us to be able to work with the community. I feel we must enter into this delicately.

“This is a tool for those who need this assistance but we must also make them aware of the negative. Assist them going forward, but also let them know there’s a flip side to it.”

Mr Adams agreed that financial literacy was key, and said there would be a “collective effort” to make sure every applicant understood the risks and how to mitigate them.

He said the option was “completely voluntary”, with people “more than welcome to keep their pensions as they are”.

He added that the proposal was an election platform promise that the Government was committed to fulfilling.

“Homeownership is important to my party, and homeownership is the desire of many Bermudians.”

Mr Adams said property was an investment many Bermudians feared they could never make, adding: “We were not elected to maintain the status quo and I will not apologise for coming to this House and providing an option that can improve the lives of families for generations to come.”