Special considerations for 31B PRC holders

Following the tabling of the new PRC provisions in the House of Assembly, there are further special considerations for people who have already become a PRC holder via section 31B, or will eventually become a 31B PRC holder as a result of the new PRC pathways (typically, kids of other PRC holders). These considerations concern improving their position in respect of any children - present or future - that they might have.

The 31B PRC is the 'lesser' PRC. Unlike the other forms of PRC, a 31B PRC holder cannot 'pass on' PRC to a spouse or child. This starts to become a problem when those 31B PRC holders start to have families of their own.

The government recognised this problem last year, creating a limited window for adult children of 31B PRCs to apply for PRC, provided they do so before the 1st September 2022.

However, for the many who will not be able to benefit from that two year window, the new PRC proposals will open up some further options for their families.

The new 31ZA PRC will allow children of 31B PRC holders to apply for PRC, but requires them to have been resident for 20 years. For a child who has grown up in Bermuda, this means waiting two years past becoming an adult. For other children, whose families may have moved overseas for some of their childhood (as many Bermudian families do), the 20 year requirement may become unrealistic.

There is an alternative for 31B PRC holders.

There may be circumstances where 31B PRC holders could consider 'upgrading' to 31ZA when they qualify for it. This would be so that their own children can obtain 31B PRC in due course. The times when a 31B PRC holder might consider this may include:

• if the government in future were planning to put a lid on new 31ZA applications; or
• the 31B PRC holder is planning on leaving Bermuda for an extended period, such that they or their children might not eligible for 31ZA PRC in the future; or
• to enable their children to obtain PRC at age 18, rather than waiting until age 20.

It has been recognised that it is possible for somebody to have more than one type of PRC. Under the old PRC scheme, which ended in 2010, there were 31B families who followed similar procedures to upgrade, so that their children could get PRC.

It would be nice to think that these types of procedures will not be necessary in the years to come, and that pathways to status will come in for these third generation members of PRC families. However, experience suggests that change can be painfully slow, and so people should be aware of all possible options for their families.