Bermuda

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1967 (old-age and survivors).

Current laws: 1970 (old age and survivors); 1980 (disability); 1998 (occupational pensions), implemented in 2000; and 1999 (national pension scheme regulations).

Type of program: Social insurance, mandatory occupational pension, and social assistance system.

Coverage

Social insurance: Employed and self-employed persons older than age 18 working more than four hours a week, and temporary residents gainfully employed for more than 26 consecutive weeks.

Voluntary coverage for persons who were previously covered.

Exclusions: Full-time students aged 26 or younger who work weekends or during school vacations.

Mandatory occupational pension: Employed persons aged 23 or older who are citizens or the spouse of a citizen and who have worked 720 hours or more for their current employer in any calendar year; self-employed persons aged 23 or older who are citizens or the spouse of a citizen and have annual earnings above B$20,000.

Social assistance: Residents of Bermuda.

Source of Funds

Insured person

Social insurance: B$34.47 a week; none if older than age 65.

Mandatory occupational pension: 5% of covered earnings.

The maximum annual earnings used to calculate contributions are B$200,000.

Social assistance: None.

Self-employed person

Social insurance: B$68.94 a week; B$34.47 if older than age 65.

Mandatory occupational pension: 10% of covered declared earnings. Additional voluntary contributions are possible.

The maximum mandatory contribution on declared earnings is B$5,000 a year.

Social assistance: None.

Employer

Social insurance: B$34.47 a week.

Mandatory occupational pension: 5% of covered earnings.

The maximum annual earnings used to calculate contributions are B$200,000.

Social assistance: None.

Government

Social insurance: None; contributes as an employer.

Mandatory occupational pension: None.

Social assistance: The total cost.

Qualifying Conditions

Old-age pension (social insurance): Age 65 with at least 484 weeks of paid or credited contributions, including an average of at least 50 weeks of paid or credited contributions for each year of coverage.

Contributions may be credited under certain conditions for each complete contributory week an insured suffered from a work incapacity due to illness or injury. Contributions are also credited for each complete contributory week a widow younger than the normal retirement age received a social insurance survivor pension. The widow may also substitute up to a year of her deceased husband's contribution record for her own.

Retirement is not necessary.

Partial pension: Age 65 with at least 484 weeks of paid or credited contributions, including an average of 25 to 49 weeks of paid or credited contributions for each year of coverage.

The old-age pension is payable abroad.

Old-age settlement (social insurance): Age 65, with at least one week of contributions, but does not meet the contribution requirements for the social insurance old-age pension.

Old-age pension (mandatory occupational pension): Age 65.

Noncontributory old-age pension (social assistance, income tested): Age 65, does not qualify for contributory old-age benefits, and is a citizen with at least 10 years of continuous residence in Bermuda in the 20 years immediately before the claim is made.

Disability pension (social insurance): Must be assessed with a disability; have been employed immediately before the disability began; have a medically certified incapacity to work; and have at least 150 weeks of paid contributions, including an average of at least 50 weeks of paid or credited contributions for each year of coverage.

Contributions may be credited under certain conditions for each complete contributory week an insured suffered from a work incapacity due to illness or injury. Contributions are also credited for each complete contributory week a widow younger than the normal retirement age received a social insurance survivor pension. The widow may also substitute up to a year of her deceased husband's contribution record for her own.

Partial pension: Must be assessed with a disability, have been employed immediately before the disability began, have a medically certified incapacity to work, and have an average of 25 to 49 weeks of contributions for each year of coverage.

The disability pension is payable abroad.

Disability pension (mandatory occupational pension): Must be assessed with an incapacity for work due to a physical or mental condition.

Noncontributory disability pension (social assistance, income tested): Must be assessed with a permanent incapacity for work, not qualify for any contributory disability benefits, and have resided in Bermuda for at least 10 years immediately before the application.

Appointed medical doctors assess the degree of disability.

Survivor pension (social insurance): The deceased received or was entitled to receive a social insurance old-age or disability pension.

Partial pension: Paid if the deceased qualified for a partial old-age or partial disability pension.

Child's supplement: Paid for each dependent child younger than age 18 (age 26 if a full-time student).

Eligible survivors include a widow(er) married to the deceased.

The survivor pension ceases upon remarriage or cohabitation.

The survivor pension is payable abroad.

Survivor settlement (social insurance): The deceased had made contributions but did not meet the contribution requirements for a social insurance survivor pension.

Eligible survivors include a widow(er) married to the deceased at the time of death, or, in the absence of a widow(er), children younger than age 18 who are full-time students.

Survivor benefit (mandatory occupational pension): The deceased received or was entitled to receive an occupational old-age or disability pension at the time of death.

Eligible survivors include beneficiaries named by the deceased.

Old-Age Benefits

Old-age pension (social insurance): B$241.57 a week (B$1,049.68 a month) plus B$1.42 for each 26-week period of contributions exceeding 484 week of contributions is paid.

Partial pension: The minimum monthly partial pension is B$524.86 (one-half of the full pension) if the annual average number of weeks of contributions is 25 to 29; B$629.76 (three-fifths) for 30 to 34 weeks; B$734.78 (seven-tenths) for 35 to 39 weeks; B$839.76 (four-fifths) for 40 to 44 weeks; or B$944.70 (nine-tenths) for 45 to 49 weeks.

Old-age settlement (social insurance): A lump sum of the total employee and employer contributions is paid.

Old-age pension (mandatory occupational pension): The pension is based on the insured's average earnings or the amount of the insured's accumulated capital, depending on the rules for the specific occupational pension scheme.

Noncontributory old-age pension (social assistance, income tested): B$110.85 a week (B$481.67 a month) is paid with total annual income greater than B$4,000; B$114.08 a week (B$495.70 a month) with total annual income up to B$4,000.

Permanent Disability Benefits

Disability pension (social insurance): B$161.02 a week (B$699.67 a month) is paid.

Partial pension: A percentage of the full pension is paid according to the average number of weeks of contributions for each year of coverage.

Disability pension (mandatory occupational pension): The amount of the benefit depends on the rules for the specific occupational pension scheme.

Noncontributory disability pension (social assistance, income tested): B$110.85 a week (B$481.67 a month) is paid.

Survivor Benefits

Survivor pension (social insurance): B$241.57 a week (B$1,049.68 a month) is paid.

Partial pension: B$524.86 (one-half of the full pension) a month is paid if the deceased's annual average number of weeks of contributions was 25 to 29; B$629.76 (three-fifths) a month for 30 to 34 weeks; B$734.78 (seven-tenths) a month for 35 to 39 weeks; B$839.76 (four-fifths) a month for 40 to 44 weeks; or B$944.70 (nine-tenths) a month for 45 to 49 weeks.

Child's supplement: An additional allowance of B$24.10 a week (B$104.72 a month) is paid for each eligible child.

The survivor pension is paid for 26 weeks or until dependent children reach age 18 (age 26 if a full-time student); for life if the surviving spouse is older than age 50 or disabled.

Survivor settlement (social insurance): A lump sum of the deceased's total employee and employer contributions is paid.

Survivor benefit (mandatory occupational pension): The benefit is paid as a lump sum or according to the pension plan based on the value of the deceased's contributions, accumulated capital, or accrued benefits.

A lump-sum benefit is paid to the survivor if the deceased was a member of an occupational pension scheme for less than two years at the time of death.

Administrative Organization

Ministry of Finance (https://www.gov.bm/ministry/finance/) provides general supervision of the social insurance and social assistance programs.

Department of Social Insurance (https://www.gov.bm/department/social-insurance/) administers the social insurance and social assistance programs.

Pension Commission (http://www.pensioncommission.bm/) supervises and regulates the mandatory occupational pension program.

Sickness and Maternity

Regulatory Framework

First and current laws: 1970 (health insurance); 2000 (labor law); and 2004 (health council), implemented in 2006.

Type of program: Universal (medical benefits for youth and the elderly), mandatory employment-related insurance (medical benefits), employer-liability (cash benefits), and social assistance (medical benefits) system.

Coverage

Universal (medical benefits): Residents of Bermuda up to age 18 (age 21 if a full-time student) or aged 65 or older.

Mandatory employment-related insurance (medical benefits): Employed persons and their nonemployed spouses; and self-employed persons.

Voluntary coverage is available for nonemployed persons.

Special system for public-sector employees.

Note: Employers and self-employed persons may choose between a public or private carrier, or an approved employer-operated plan. Of the public plans, the Health Insurance Plan is open to all residents and Future Care is open to residents aged 65 or older.

Employer liability (cash benefits): Employed persons.

Exclusions: Self-employed persons.

Social assistance (medical benefits): Needy residents of Bermuda or persons of Bermudian status.

Source of Funds

Insured person

Universal (medical benefits): Cost-sharing for residents aged 65 or older.

Mandatory employment-related insurance (medical benefits): Employed persons and their nonemployed spouses pay 50% of a premium set based on medical underwriting (commercial insurance), B$214.62 a month (Health Insurance Plan), or B$250.07 a month (B$749.24 a month for persons who do not meet residency requirements; Future Care).

Voluntarily insured persons pay B$429.24 a month (Health Insurance Plan) or B$500.14 a month (B$1,498.48 a month for persons who do not meet residency requirements; Future Care).

B$190 a month (Health Insurance Plan) for supplementary benefits for voluntarily insured children up to age 18 (age 21 if a full-time student).

Employer liability (cash benefits): None.

Social assistance (medical benefits): None.

Self-employed person

Universal (medical benefits): Not applicable.

Mandatory employment-related insurance (medical benefits): Self-employed persons pay 100% of a premium set based on medical underwriting (commercial insurance), B$429.24 a month (Health Insurance Plan), or B$500.14 a month (B$1,498.48 a month for persons who do not meet residency requirements; Future Care). Children up to age 18 (age 21 if a full-time student) may be voluntarily insured for B$190 a month (Health Insurance Plan).

Employer liability (cash benefits): Not applicable.

Social assistance (medical benefits): None.

Employer

Universal (medical benefits): None.

Mandatory employment-related insurance (medical benefits): For employees and their nonemployed spouses, 50% of a premium set based on medical underwriting (commercial insurance), B$214.62 a month (Health Insurance Plan), or B$250.07 a month (B$749.24 a month for persons who do not meet residency requirements; Future Care).

Employer liability (cash benefits): The total cost.

Social assistance (medical benefits): None.

Government

Universal (medical benefits): The government covers 80% of the total cost of basic health care services for residents aged 65 to 74; 90% of the total cost of basic health care services for residents aged 75 or older; and 100% of the total cost of basic health care services for residents aged 18 or younger. Must have lived in Bermuda for 10 consecutive years during the past 20 years, with no more than 3 months of absence in any year.

Mandatory employment-related insurance (medical benefits): Subsidizes the cost of premiums for supplementary benefits for children up to age 18 (age 21 if a full-time student), and residents aged 65 or older, who have lived in Bermuda for 10 consecutive years during the past 20 years, with no more than 3 months of absence in any year.

Employer liability (cash benefits): None; contributes as an employer.

Social assistance (medical benefits): The total cost.

Qualifying Conditions

Cash sickness benefit (employer liability): Must have at least one year of continuous service.

Cash maternity benefit (employer liability): Must provide a medical certificate specifying the expected date of childbirth and submit an application to the employer at least four weeks before the expected date the leave will begin.

Medical benefits (universal): Residents of Bermuda up to age 18 (age 21 if a full-time student) or aged 65 or older. Those aged 65 or older must have lived in Bermuda for 10 consecutive years during the past 20 years, with no more than 3 months of absence in any year.

Medical benefits (mandatory employment-related insurance): There is no minimum qualifying period, except for a 10-month waiting period for maternity care.

Insurance with public plans is terminated after 60 days of non-payment of premiums.

Medical benefits (social assistance, income tested): Must be of Bermudian status or have resided in Bermuda for at least 10 years.

Sickness and Maternity Benefits

Sickness benefit (employer liability): 100% of the employee's daily wages is paid for up to eight days a year.

Maternity benefit (employer liability): 100% of the employee's wages is paid for eight weeks for at least one year of continuous service with the same employer, plus an additional four weeks of unpaid leave. Employees with less than a year may take eight weeks of unpaid leave.

Workers' Medical Benefits

Medical benefits (universal and social assistance): A basic basket of benefits is defined by a schedule in law, including inpatient and outpatient services; nursing; pharmaceuticals provided in the hospital; surgery; diagnostic, laboratory and therapeutic services; and orthopedic appliances.

Cost sharing: The government covers 80% of the total cost of basic health care services for residents aged 65 to 74; 90% of the total cost of basic health care services for residents aged 75 or older; and 100% of the total cost of basic health care services for needy residents and residents aged up to age 18 (age 21 if a full-time student).

Medical benefits (mandatory employment-related insurance)

Commercial medical benefits: Benefits include inpatient and outpatient services; nursing, preventive, diagnostic, laboratory, ambulance, air ambulance, air travel, room and board, specialist, and doctor services; surgery; appliances; prescription drugs; dental and vision care; and at-home nursing services.

Health Insurance Plan: Benefits include inpatient and outpatient services; nursing, diagnostic, laboratory, ambulance, specialist, and doctor services; surgery; appliances; medicine; basic dental care; and health and wellness visits.

Future Care: Benefits include inpatient and outpatient services; nursing, preventive, diagnostic, laboratory, ambulance, specialist, and doctor services; surgery; appliances; medicine; dental and vision care; and at-home nursing services.

Cost sharing: Copayments are required under all plans.

Dependents' Medical Benefits

Medical benefits (universal and social assistance): Medical benefits for dependents are the same as for the insured.

Medical benefits (mandatory employment-related insurance): Medical benefits for insured dependents are the same as for the insured.

Administrative Organization

Department of Workforce Development (http://www.dwd.bm/), under the Ministry of Home Affairs, administers cash benefits.

Ministry of Health (https://www.gov.bm/ministry/health/) provides general supervision of medical benefits.

Health Insurance Department (https://www.gov.bm/department/health-insurance/) administers the Health Insurance Plan and the Future Care medical benefits programs.

Private carriers administer the private insurance medical benefits program.

Work Injury

Regulatory Framework

First and current law: 1965 (workmen's compensation).

Type of program: Employer-liability system. (The government may require employers to carry insurance.)

Coverage

Employed persons and apprentices.

Exclusions: Self-employed persons, casual labor, part-time workers, temporary employees, students, and voluntary workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: The total cost (pays insurance premiums or provides benefits directly to employees).

Government: None.

Qualifying Conditions

Must be assessed with a work injury or occupational disease. The incapacity must last more than three days.

Temporary Disability Benefits

50% of the employee's lost earnings (up to B$170 a week) or a lump sum is paid. The total benefit must not exceed the permanent disability benefit the employee would be entitled to receive.

Permanent Disability Benefits

For a total disability, four years of the employee's earnings before the incapacity began, or four years of the average annual per capita income, whichever is less, is paid.

The average annual per capita income is B$91,479 (2014).

Constant-attendance supplement: 25% of the permanent disability benefit is paid if the employee requires the constant attendance of others to perform daily functions.

Partial disability: A percentage of the full disability benefit is paid according to the assessed loss of earning capacity.

Appointed medical doctors assess the degree of disability.

Workers' Medical Benefits

Benefits include the cost of necessary medical care, including hospitalization (up to a maximum based on the prevailing public ward charge for 56 days); emergency outpatient treatment; surgery, according to a fee schedule; medical expenses, including the cost of nursing, ambulances, and medicine, up to B$1,000; the cost of prostheses up to B$2,000; and the cost of transportation up to B$250.

Survivor Benefits

Survivor benefit: A lump sum of three years of the deceased's earnings, or three years of the average annual per capita income, whichever is less, minus the value of any permanent disability benefits paid to the deceased, is paid.

The average annual per capita income is B$91,479.

Eligible survivors include persons who were totally dependent on the deceased.

Partial survivor grant: A lump sum is paid to those who were partially dependent on the deceased.

Funeral grant and medical expenses: A lump sum of up to B$2,000 is paid if there are no dependents.

Administrative Organization

Department of Workforce Development (http://www.dwd.bm/), under the Ministry of Home Affairs, provides general supervision.

Supreme Court administers the lump-sum benefits.

Courts supervise the agreement between an employer and the insured on the amounts paid.

Unemployment

Regulatory Framework

Labor law (2000) requires employers to provide severance pay to employees with at least one year of continuous service. Severance is paid in cases of redundancy, insolvency, death of the employer, and death of the employee due to a work injury. The benefit is at least two weeks of the employee's wages for each year of service up to 10 years plus three weeks of wages for each year of service exceeding 10 years, up to 26 weeks of wages.

Family Allowances

Regulatory Framework

First and current laws: 2001 (Financial Assistance Act) and 2008 (Child Day Care Allowance Act).

Type of program: Social assistance system.

Coverage

Needy families of Bermudian status.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Child day care allowance (income tested): Paid to the primary caregiver of a child younger than age 4 who is not in an approved or registered child care provider. The child must not have begun pre-school education.

Financial assistance (means tested): Paid to individuals and families unable to meet the cost of food, accommodation, utilities, transportation, laundry, adult day care, home care, health insurance, medication, or medical equipment. Must have resided in Bermuda for at least one year.

Family Allowance Benefits

Child day care allowance (income tested): The cost of child care, up to B$800 a month for each child, is paid for three months. The benefit may be extended upon review.

Financial assistance (means tested): Assistance is paid for up to a total of five years, according to maximums defined in a schedule in law.

Administrative Organization

Department of Financial Assistance (https://www.gov.bm/department/financial-assistance/), under the Ministry of Social Development and Sports, administers the program.