August 6, 2019

The Senate on Friday approved regulations aimed at broadening the range of assets in which pension funds can be invested. 

The government says it is pushing for pension plan regulations to be in place early 2020. The regulations, which were approved by the Senate, were adopted by the House of Representatives in July.

Speaking on CVM LIVE’s Minister Monday, Deputy President of the Senate, Government Senator Aubyn Hill describes the government’s plans as ‘necessary.’

The move is expected to broaden the range of assets in which pension plans can be invested.

Speaking during the senate meeting, Minister without Portfolio in the Ministry of Economic Growth and Job Creation Pearnel Charles Jr. said the regulations will require each pension plan to develop an investment policy. 

It means investment managers will have to work with pension fund assets in a manner consistent with the individual plan s investment policy, the governing legislation and the regulations.

“Target dates have been set. I know Minister (of Finance and the Public Service, Dr. the Hon. Nigel) Clarke is pushing for them to be done by this year and I would say at latest the early quarter of 2020,” Senator Charles Jr. said.

Among other assets, pension plans will now be permitted to invest in bonds issued by companies that have an investment grade rating from a recognized rating agency; and bonds issued by companies listed on the Jamaica Stock Exchange (JSE).

Gabrielle Thompson