Madam Speaker, I wish to draw the attention of Members of the House of Representatives to the White Paper on the Reform of the Pensions System in Jamaica, which was tabled this afternoon.

The objectives of the reforms outlined in this Paper are twofold:

1. First, to ensure that proper arrangements are made by and for Jamaicans during their working lives, so as to enable them to receive an adequate pension at retirement; and
2. Second, to create an effectively regulated pensions system in which the contractual savings arrangements are made more secure and profitable for participants.

The tabling of this document is yet another step forward in the reform process, which is expected to culminate in the enactment of comprehensive legislation governing the pensions system in Jamaica.

The reform of the pensions system is a crucial part of the Government’s efforts to strengthen the financial sector and to improve its institutional structures and regulatory framework. Such efforts are in response to the fall-out in the financial sector that seriously jeopardized the viability of numerous pension funds, which were imprudently invested and had to be assisted by FINSAC. The drive to strengthen the regulatory and supervisory framework is aimed at preventing a recurrence of such a fall-out.

 In the context of strengthening the supervision of non-deposit taking entities, a new supervisory authority, the Financial Services Commission (FSC) is due to begin operations shortly. This Commission will be responsible for the efficient regulation and supervision of entities dealing in securities, collective investment funds, investment advisors, the insurance industry and pension funds. To facilitate this new regulatory authority, new legislation was passed and existing Acts amended by the Houses of Parliament. The enactment of a new National Pensions Act is a crucial part of this process.

To this end, the White Paper on Pensions Reform outlines the provisions to be included in the proposed National Pensions Act. These provisions include:

1. Licensing and registration requirements for Pension/ Superannuation Funds, and Managers/Administrators of pension funds;
2. Full disclosure of information to the members of the Pension/Superannuation Fund and the Financial Services Commission;
3. Accountability of the Trustees and Managers/Administrators of such funds for their operation;
4. Investment Limits;
5. Enabling self-employed persons and persons in non-pensionable employment to provide for retirement income at levels commensurate with the provisions of Occupational Pension Schemes;
6. Funding for Parental Pensions by children;
7. The voluntary indexation of pensions; and
8. The mandatory Preservation and Portability of Pension Rights. continue

Back to Top  

Print this page / Email to a friend