Provisions of the National Pension Scheme (Occupational Pensions) Amendment Act 2019 came into force on Monday 30 December 2019. Employers should now be familiar with some of the upcoming changes, the most significant being:
- Employers will be required to keep records in relation to payroll and employee-related pension information;
- Enrolment in registered pension plans is no longer limited to Bermudians and spouses of Bermudians;
- Vesting periods will be generally reduced to one year;
- New penalties will be imposed on employers and pension administrators for non-compliance;
- Retired persons will be able to withdraw a lump sum of up to 25% of their account balance or commuted value or his/her benefits; and
- A new carve out has been introduced for American citizens participating in 401k plans.