National Pension Scheme (Occupational Pensions) Temporary Amendment Act 2012
FA E R
N

AT F
TQUO U

BERMUDA

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
TEMPORARY AMENDMENT ACT 2012

2012 : 21

TABLE OF CONTENTS

Citation
Construction and application
Interpretation
Suspension of contributions: defined contribution benefits
Suspension of contributions: defined benefits
Notice to employer and administrator
No suspension if employer in arrears
Contributions during suspension period not voluntary contributions
Offence if employer deducts contributions where notice given
Commencement

WHEREAS it is expedient to make temporary modifications to the requirements of
the National Pension Scheme (Occupational Pensions) Act 1998 to allow for the suspension
of employee and employer contributions in respect of the suspension period;

Be it enacted by The Queen’s Most Excellent Majesty, by and with the advice and
consent of the Senate and the House of Assembly of Bermuda, and by the authority of the
same, as follows:

Citation
This Act may be cited as the National Pension Scheme (Occupational Pensions)

Temporary Amendment Act 2012.

1
2
3
4
5
6
7
8
9
10

1

1

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS) TEMPORARY
AMENDMENT ACT 2012

Construction and application
This Act shall be construed as one with the National Pension Scheme

(Occupational Pensions) Act 1998 (“the principal Act”).

This Act applies notwithstanding anything to the contrary in—

the principal Act or any other Act; or

the pension plan or contract of employment of a member.

Interpretation
In this Act—

“agreement” means agreement in writing;

“normal cost” has the meaning given in section 39 of the National Pension Scheme
(General) Regulations 1999;

“notice” means notice in writing;

“special payment” has the meaning given in section 39 of the National Pension
Scheme (General) Regulations 1999;

“suspension period” means the period of 12 months beginning with the
commencement date appointed under section 10.

References to the suspension of contributions in respect of the suspension
period means contributions which, but for this Act, would be required under the principal
Act to be paid in respect of the suspension period.

Suspension of contributions: defined contribution benefits
This section applies to a defined contribution pension plan.

A member may suspend his contributions in respect of the suspension period,
with the agreement of his employer.

An employer may suspend his contributions as they relate to a member in
respect of the suspension period, with the agreement of the member.

In a case where an employer pays all or part of a member’s contributions, the
employer may suspend those contributions in respect of the suspension period, with the
agreement of the member.

In a case where—

a member is represented by a collective bargaining agent; and

the collective bargaining agreement addresses the pension plan,

then there must in addition be an agreement between the employer and the collective
bargaining agent before any contributions relating to that member can be suspended under
subsections (2) to (4).

2 (1)

(2)

(a)

(b)

3 (1)

(2)

4 (1)

(2)

(3)

(4)

(5)

(a)

(b)

2

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS) TEMPORARY
AMENDMENT ACT 2012

A member’s membership in the plan shall continue for the purpose of
calculating the member’s pension benefit and for all other purposes, notwithstanding any
suspension of contributions in respect of the suspension period.

Suspension of contributions: defined benefits
This section applies to a defined benefit pension plan.

An employer may either—

suspend all employer normal cost and member contributions in respect of
the suspension period; or

continue to make all employer normal cost contributions and require
employees to continue to make member contributions in respect of the
suspension period.

An employer may not suspend special payments in respect of the suspension
period.

Subject to subsection (5), no agreement is needed between the employer and
member in relation to the suspension of contributions in respect of the suspension period.

In a case where—

a member is represented by a collective bargaining agent; and

the collective bargaining agreement addresses the pension plan,

then there must be an agreement between the employer and the collective bargaining agent
before the employer can suspend contributions under subsection (2)(a).

A member’s accrual of service and membership in the plan shall continue for
the purpose of calculating the member’s pension benefit and for all other purposes,
notwithstanding any suspension of contributions in respect of the suspension period.

Notice to employer and administrator
If a member decides to suspend his contributions under section 4(2), the

member must give notice to his employer, within the time period notified to him by his
employer.

An employer must give written notice to the administrator of a plan of any
proposed suspension of contributions under section 4 or 5.

Section 19(6) of the principal Act (administrator to give notice to employer and
Commission regarding unpaid contributions) does not apply when a notice has been given
under subsection (2).

No suspension if employer in arrears
An employer shall not suspend any employer contributions under section 4 or 5 if

he has any outstanding employer contributions due and in arrears, or member
contributions deducted but not paid into the fund, in respect of any period of service before
the suspension period, whether—

(6)

5 (1)

(2)

(a)

(b)

(3)

(4)

(5)

(a)

(b)

(6)

6 (1)

(2)

(3)

7

3

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS) TEMPORARY
AMENDMENT ACT 2012

employer contributions, or member contributions in cases in which the
employer pays all or part of the member’s contribution, in the case of a
defined contribution plan; or

normal cost or special payments, or member contributions in cases in
which the employer pays all or part of the member’s contribution, in the
case of a defined benefit plan.

Contributions during suspension period not voluntary contributions
For the avoidance of doubt, where a member continues to make contributions in

respect of the suspension period which would, but for this Act, be contributions which he
is required to make under the principal Act, these shall not be treated as voluntary
contributions.

Offence if employer deducts contributions where notice given
This section applies where a member gives notice to his employer, in

accordance with section 6(1), that he has decided to suspend his contributions during the
suspension period.

An employer who continues to deduct contributions from the member’s salary
or wages in respect of the suspension period commits an offence.

Section 67 of the principal Act (offences, penalties and orders for payment)
applies to an offence under this section.

Commencement
This Act shall come into operation on such date as the Minister of Finance may

appoint by notice in the Gazette.

[Assent Date: 15 June 2012]

[Operative Date: 01 August 2012]

(a)

(b)

8

9 (1)

(2)

(3)

10

4