Bermuda Revises Pensions Scheme 

Changes to Bermuda’s National Pension Scheme include a requirement to enroll most expatriate employees in a pension plan registered in Bermuda, with an exemption for US citizens who participate in a 401(k) plan. The changes feature in the National Pension Scheme (Occupational Pensions) Amendment Act 2019 that passed parliament in November 2019.  

Highlights and effective dates:

• Expatriate employees working in Bermuda for periods exceeding 12 months must enroll in a Bermuda-registered pension plan. Under the old law, only Bermudians and their spouses were required to enroll. However, US citizens enrolled in a 401(k) plan are exempt. (2 Mar 2020)
• The vesting period has been reduced from two years to one year. (2 Mar 2020)
• Former members who have reached the normal retirement age and retired can cash out small pension benefits not exceeding BM$50,000. (2 Jan 2020)
• Members and former members who have reached the normal retirement age and retired can withdraw a lump sum up to 25% of the value of their pension account or commuted value of their benefits.
  (2 Mar 2020)
• Employers will be subject to new recordkeeping duties for payroll and pension information.
  (2 Mar 2020)
• Annual defined benefit statements issued to members must include a summary of fees and expenses. (30 Dec 2019)
• Audited pension plan financial statements must be prepared if their market value exceeds BM$3 million, up from BM$1 million. (30 Dec 2019)
• Employers and pension administrators face tougher sanctions for non-compliance. (2 Mar 2020) 

Related Resources

• National Pension Scheme (Occupational Pensions) Amendment Act 2019 (Parliament of Bermuda)
• Assent of The Governor (Government of Bermuda, 24 Dec 2019)
• Commencement Notice 2019 (The Official Gazette, 30 Dec 2019)