Senate Passes Pensions Regulations

The Senate, on Friday (Oct. 16), approved the Pensions (Superannuation Funds and Retirement Schemes) (Investment) (Amendment) Regulations, 2026, to allow pension schemes to invest a greater percentage in private assets.

The amendment provides for a phased increase in the applicable investment limit, moving first to 7.5 per cent until March 31, 2027 and thereafter to 10 per cent of the fair value of assets of the fund or scheme, effective April 1, 2027.

Piloting the regulations, Minister of Education, Skills, Youth and Information, Senator Dr. the Hon. Dana Morris Dixon, noted that while the change may appear to be a technical adjustment, it carries far-reaching implications that extend well beyond what may be immediately apparent.

“The questions we are asking are: How do we protect the retirement savings of Jamaican workers? What can we do to maximize pension earnings? How can we add legislative support so that our financial system can support the long-term development of Jamaica?” she said.

The Senator reasoned that every pension contribution represents work already done and income deliberately set aside for the later stages of life.

These savings, she said, carry an immense obligation of trust, noting that the first purpose of a pension is to provide dignity, security and independence in retirement.

“The policy objective in these regulations is to expand investment opportunities without compromising the standards of stewardship that pensioners rightly expect. Protecting those savings is not inconsistent with allowing them to earn competitive, prudent returns,” Senator Morris Dixon pointed out.

She noted further that because retirement obligations extend many years into the future, pension funds require carefully diversified investment opportunities.

The Senator said the amendments form part of a regulatory modernisation programme and are intended to improve the way regulated institutional capital may be deployed within the Jamaican economy.

She said that the changes will provide competent trustees and investment professionals greater room to identify strong investments that can reward savers while helping productive Jamaican enterprises grow.

“Financial Literacy 101 says that a properly diversified portfolio can reduce excessive dependence on any one asset class and may provide access to different sources of income and growth. Right now, as the industry will tell you, many pension funds are artificially concentrated,” Senator Morris Dixon pointed out.

She noted that carefully selected private company debt or equity may offer risk-adjusted opportunities that complement existing government securities, publicly traded assets and other permissible investments.

The amendment was supported by Opposition Senator, Ramon Small-Ferguson, who described it as “a move in the right direction”.

Among the potential benefits, he said, are the addition of flexibility and the opportunity for pension funds to diversify further into different emerging asset classes.

“The economic impact is potentially significant. It allows pension funds to divert investments into prudently structured housing projects, energy and the productive sector,” Senator Small-Ferguson said.

Government Senator Sherene Golding Campbell, and Opposition Senators, Lambert Brown and Floyd Morris, also gave support to the amendment.