Tourism workers' pension scheme to start January 1

Tourism Minister Edmund Bartlett says the delayed pension scheme for tourism workers will be introduced on January 1.

Legislation for the scheme was approved by the parliament two years ago, but the implementation was delayed with the onset of the COVID-19 pandemic. 

“We are back on track and have concluded arrangements with the fund manager, Sagicor and fund administrator, Guardian Life," said Bartlett.

Come January 1, some 350,000 tourism workers may begin registration for the scheme.

Bartlett was speaking at the official opening of the 444-suite Ocean Eden Bay Hotel, in Trelawny this week.

He said the introduction of the scheme coincides with the recovery of the tourism sector with workers again optimistic about the future.

“The thinking behind the pension scheme was to ensure that the workers of our industry can have an opportunity to look forward to a future that will secure them and their families,” said Bartlett.

The Tourism Workers Pension Scheme is a defined contributory plan supported and will require mandatory contributions by workers and employers.

Before the pandemic, several sensitisation sessions were held with tourism workers islandwide to get feedback and to explain how the scheme will work.

The pension scheme covers all workers ages 18 to 59 years in the tourism sector, whether permanent, contract or self-employed.

Benefits will be payable at age 65 years or older.

Initially, for 2022, the contribution will be three per cent of gross salary to be matched by the employer.

Afterwards it will be five per cent.

The Government will provide $1 billion to seed the fund.

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