Drafting Instructions Issued for Amendment to Pensions Act

Cabinet has issued drafting instructions to amend the Pensions Superannuation and Retirement Funds Act of 2004.
Addressing journalists at the (Nov 27), post-Cabinet press briefing at Jamaica House, Acting Permanent Secretary in the Ministry of Information, Culture, Youth and Sports, Faith Innerarity said the move to amend this Act is the second phase of the pensions reform project.
Mrs. Innerarity informed that drafting instructions concerning the mandatory vesting period in pension schemes; the portability of pension rights; the indexation of funds; and the distribution of surplus were issued.
The Acting Permanent Secretary noted that the issuing of drafting instructions for the portability of pension rights would allow an individual to transfer his accrued pension funds from one retirement plan to another.
“The amendment would allow all pension plans to provide for the transfer and acceptance of the accrued benefits of a member,” she explained.
“Currently this is not the case and many persons upon leaving one pension scheme would normally get back what they would put in and sometimes this is not saved for pension purposes, but would normally be used for consumption. This new amendment will allow persons to save more,” Mrs. Innerarity pointed out.