Senate Approves Pension Regulations

The Senate, on Friday (July 10), approved the Pensions (Superannuation Funds and Retirement Schemes) (Registration, Licensing and Reporting) (Amendment) Regulations, 2026.

The amendment paves the way for a phased increase in the proportion of pension funds that may be invested in private company equity.

The pension fund private asset limit will move from five per cent of total assets to 7.5 per cent in the current fiscal year.

Subject to supervisory monitoring and in the absence of any unforeseen adverse consequences, the Government will complete the second phase of this increase to 10 per cent by April 2027.

Piloting the regulations, Senator Kavan Gayle, said this phased approach is both prudent and responsible.

“Some say it’s risky, but it’s an important venture in terms of investment in private equity and I want to commend the Government for moving towards this modernized approach in terms of pension,” he said.

As of September 2025, Senator Gayle said Jamaica’s pension industry managed approximately $847 billion in assets.

“Increasing this allocation to 7.5 per cent could make more than $21 billion available to support Jamaica’s businesses, infrastructure and innovation. It is making more investment in pension…Today, what we are doing is that we are increasing investment diversification, whilst maintaining prudent safeguards,” he explained.

The amendment was supported by Opposition Senator, Ramon Small-Ferguson, who said the increase will diversify the portfolios that pensioners are investing in.

“There is the opportunity for stronger returns, better resilience, less concentration. If you look at how pension funds are invested in Jamaica, there are large concentrations. The largest asset class is actually Government of Jamaica debt. So, this move will allow for greater diversification overtime, and I think that matters directly for the workers and ultimately retirees who are saving these funds,” he explained.

Senator Small-Ferguson reasoned that the increase could see greater investment of pension funds in the real economy such as housing, infrastructure, energy, productive businesses and other long-term projects.

“Those benefits can extend beyond just financial returns, but ultimately potentially to jobs, right, to improve services, to stronger communities and more sustained economic growth,” he said.