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)
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