Close to 10,000 Contributors to Tourism Workers Pension Scheme

The Ministry of Tourism is reporting that close to 10,000 hospitality workers are paying into the Tourism Workers Pension Scheme, with approximately $400 million in contributions to date.

Portfolio Minister, Hon. Edmund Bartlett, made the disclosure during the sitting of the Standing Finance Committee of the House of Representatives, on March 1.

“The Government, as you know, has put forward over $1 billion. The last tranche of $50 million will be done in the new fiscal [year] and then we would have put in $1 billion. So, the fund as it stands now, would have just a little shy of $1.4 billion in it,” Mr. Bartlett said.

He noted that there are plans to increase the number of contributors to the pension scheme.

“We could go to 350,000 contributors in the end, because of how broad and wide the tourism catchment is. We allow for workers in the cruise ship [sector] to also contribute to this pension plan, because they are Jamaicans and when they come back here, they can continue to work in any area in tourism and continue their savings,” Mr. Bartlett pointed out.

He noted that discussions are under way for a public education programme.

He said there is a team “that visit hotels and tries to recruit members as they go along. We want to increase the number of persons who are going across the island, because we are aware of… the social safety net value of the pension,” Mr. Bartlett said.

“The pension pool of funds represents, perhaps in the future, the largest pool of domestic savings that will be available for us for investment and that’s a catalyst for growth. So, beyond the fact that it offers social security [for] the worker, it also provides a pool of capital for development in infrastructure and housing and all sorts of other things in the country,” he added.

The pension scheme is designed to cover all workers, aged 18 to 59 years in the tourism sector, whether permanent, contract or self-employed.

This includes hotel workers as well as persons employed in related industries, such as craft vendors, tour operators, red cap porters, contract carriage operators and workers at attractions. Benefits will be payable at age 65 years or older.