Mr Speaker, in this Government’s 2017 Election Platform, we pledged that we would increase pension benefits by the rate of inflation and earlier today, with the tabling of the Contributory Pensions (Amendment of Benefits) Order, I am pleased to announce that it is a promise that this Government is proud to keep, just as we have done since 2017!
Mr Speaker, this Progressive Labour Party Government reveres its seniors and understands the challenges that are faced by many. We also believe that it is essential that we keep our promises made to the electorate, as it is vital to maintain trust in politics. Therefore, the proposed pension increase aims to sustain the quality of life of our seniors and people with disabilities in the face of 40-year high inflation, ensuring that their pensions keep up with rising prices.
Mr Speaker, honourable members and members of the public should note that the overall CPI rate has increased by 4.1% since this Government increased pensions last year. Therefore, the proposed increase will be 4.1%, fully covering the overall inflation rate. This increase will raise the basic contributory pension from $1,107 to $1,152 per month and increase the maximum pension from $1,607 to $1,673 per month.
Mr Speaker, many are concerned with the state of the Contributory Pension Fund and its ability to continue paying benefits as our population ages. Mr Speaker, the work is well advanced on finalising the revisions to the public pension system, with final consultations commencing next week before the Cabinet takes under consideration the proposals to bring to this Honourable House in the next session.
In the interim, Mr Speaker, this Government will keep its election promise to the People of Bermuda and ensure the annual social insurance increase occurs in August of this year, with the increased payments going to our pensioners on September 15th.
Mr Speaker, I look forward to providing this Honourable House with more detailed information about the Contributory Pension Fund, the proposed 2023 increase, and the reforms under consideration when we debate this proposed order next week.
Mr Speaker, in closing, this Government is proud of its record of delivering for our seniors. We kept our promise to increase the prescription drug benefit under Future Care. We kept our promise to build more affordable housing for our seniors. We kept our promise to expand the home-care benefit under Future Care. We kept our promise to introduce a Charter of Rights and Responsibilities for seniors. And today, Mr Speaker, we are once again keeping our promise to increase Social Insurance by the rate of inflation to support the seniors of Bermuda.
Thank you, Mr Speaker.