The need for a comprehensive reform of the pensions system in Jamaica has emerged because of the deficiencies of the current arrangement. Presently, there are approximately 1,500 registered pension schemes, which are either self-administered or pooled with Pension Administrators. However, no legislation exists to effectively provide for their regulation. The minimal provisions in the Income Tax Act are primarily concerned with the tax implications of pension schemes, and impose few requirements on the operation of the schemes.

The Pensions system is to be reformed so as to address the following:

1. To ensure that proper arrangements are made by and for employees during their working lives, so as to enable them to receive an adequate pension at retirement. This is not currently properly provided for, as persons who on changing jobs frequently have received several contribution refunds during their working lifetime and therefore do not accumulate enough funds to receive an adequate pension at retirement.
2. To reduce the level of dependence of the aged and retirees for assistance from the state and families after completion of their working years. This is very important as the population of senior citizens (aged 60 and over) is increasing both in absolute number and as a percentage of the total population. It has also been recorded that the ratio of female old agers compared to males has increased. It is therefore critical to implement long-term measures that allow the increasing numbers of senior citizens to be more self-sufficient.
3. To heighten the level of social awareness of the need for preparing for retirement, and to put in place measures to encourage and facilitate self-employed persons and persons in non-pensionable employment in their effort to meet this need.
4. To widen the system to facilitate savings by adults towards pensions for their parents.
5. To provide for the effective governance and supervision of pension and superannuation schemes in Jamaica, so as to ensure accountability, solvency of funds, and the protection of the plan participants' interests.
6. To effectuate some level of standardization within the pensions industry, with respect to a minimum level of benefits to be offered, and contributions to be levied.
7. To ensure that the most cost-effective means of administering pension schemes is implemented and that the principle of transparency is applied.
8. To transform some existing pension arrangements for public sector workers from the partially and non-funded Pay-As-You-Go (PAYG) schemes to fully funded contributory schemes, thereby providing investment opportunities and anticipated improved benefits to retirees from the sector and their beneficiaries.

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