Bermuda’s contributory pension scheme requires employers to make monthly contributions to the Contributory Pensions Fund for every employee above 17 years of age for each week in which the employee works more than four hours.
An employer must ensure that each qualifying employee registers with the department and obtains a social insurance number.
Civil and criminal penalties may apply to employers for failure to register or pay in for each qualifying employee. Employees contribute a matching sum via weekly payroll deduction, with several exceptions.
Full time students under age 26 who are employed during holidays, weekends and summer breaks, and their employers, are entirely exempt from social insurance contributions. Employees over the age of 65 are exempt from contributing their half, although the employer must still contribute its part.
The current total contribution per employee per week is BMD 71.84. The employer portion is BMD 35.92 and the employee portion is BMD 35.92. Expatriate and other employees who pay in to the system but fail to qualify for a pension due to insufficient contributions may apply at age 65 for a refund of the total value of the contributions made on their behalf, including both employer and employee contributions