The passage of the Pensions (Superannuation Funds and Retirement Schemes) Act and attendant Regulations signalled the first step in the Government’s move to implement a regulatory framework for private pension plans in Jamaica.
For many years prior to the passage of the Pensions Act, the Tax Department, had the sole task of monitoring, regulating and approving pension plans under the Income Tax Act. The Income Tax Act, however, did not have the scope to handle and address important issues such as management of trustees, benefit payments, complaints, solvency and funding requirements or compliance.
PHASE 1 of the Reform of the Private Pension System was completed in September 2006, with the passage of the Pensions (Superannuation Funds and Retirement Schemes) Act, 2004 (the Pensions Act). The Pensions Act introduced sweeping changes in the pensions industry in Jamaica. Before the Pensions Act, the Industry (excluding a few pension plans established by Acts of Parliament) was governed by the tax authorities via a single section of the Income Tax Act (Section 44).
The Association (PIAJ) has made representations to the Financial Services Commission on the proposed amendments to the Pensions (Superannuation Funds and Retirement Schemes) Act, popularly referred to as Phase II amendments. Phase II has been a few years in the making and we have been actively involved, having had members sit on various sub-committees tasked with reviewing the proposed amendments. PIAJ, like the wider pensions industry, anxiously awaits the release of the draft bill. The FSC has assured the Association that the draft bill will be available for review soon and that further comments will be invited from pension stakeholders at that time.