Prime Minister Announces Imminent Changes to Pension Fund

Prime Minister Andrew Holness says imminent policy changes will be made to existing pension schemes.

Speaking at the annual Sagicor Pension Investment Seminar today (February 21), the prime minister said the changes will ensure greater efficiency of pension funds.

“In the very near future there will be policy changes to ensure, facilitate, and promote better efficiency in terms of investments and in terms of how pension funds structure their assets to align more with the investment infrastructure thrust of the Jamaican Government,” said Prime Minister Holness.

The Prime Minister said the government must find a way to attach the right kinds of investment to existing pension funds.

Adding that most of our pension funds are tied to government bonds, Prime Minister Holness said that based on evidence this is not the best way to secure the funds.

“We are looking (as government) to figure out how we can coordinate the investments that must be made in terms of developing our infrastructure with the pool of pension funds that exist,” added Mr. Holness.

The Prime Minister suggested that the best way to secure the pension funds is to tie them to long term income generating projects such as infrastructure projects and real estate which will in another fifty (50) years continue to generate income.

“There is a symbiotic relationship there, that we would benefit now from the investment in the infrastructure, while securing a longer term income and a better quality of life for our retirees and pensioners”, Prime Minister Holness added.

The Prime Minister encouraged Jamaicans to take greater responsibility for their future quality of life by investing and saving in formal pension schemes.