New pensions solution launched for business community
Published:Thursday | September 8, 2022 | 12:07 AMAinsworth Morris/Staff Reporter
Industry stakeholders have welcomed the launch of a pensions scheme for the business community, the result of a partnership between the Victoria Mutual (VM) Pensions Management Limited and the Jamaica Manufacturers and Exporters Association (JMEA) to provide special pension solutions to JMEA member companies and their employees..
The Jamaica Manufacturers and Exporters Association Retirement Account (JMEARA) was launched on Tuesday at the offices of the Victoria Mutual (VM) Building Society in Half-Way Tree.
The pension offer includes an Approved Retirement Scheme portfolio and consists of a balanced allocation of equities and fixed income securities in both Jamaican dollars and United States dollars, as well as real estate.
The partnership also seeks to address critical needs of the member companies and their employees including capital, loans, investments, insurance and savings through a bundled offer from across VM Support Business Units.
John Mahfood, president, JMEA, in lauding the initiative, said the industry-wide pension scheme was prompted by the minister of tourism’s provision of a pension scheme for employees in the tourism sector.
“We as employees in the JMEA, we employ 70,000 to 80,000 people and generally speaking, the vast majority of these people are not sufficient to provide all their needs,” Mahfood said as he argued why the pension plan was necessary.
Senator Aubyn Hill endorsed the JMEARA and congratulated both institutions for their strategic alliance.
“This initiative should expand VM’s business and provide a welcome avenue for JMEA members to plan for their future,” Hill said.
He continued, “According to the World Health Organization, people are generally living longer and projections are that 2030, that’s in less than eight years, one in six people in the world will be age 60 and over. This means that more money will be needed for more people for life beyond retirement.”
A rationale for the creation of the JMEARA was data that only 12 per cent of employed Jamaicans now have a pension fund.
At the launch, the JMEA and VM signed a memorandum of understanding for a bundle offering with incentives for those who register for JMEARA.
Conroy Rose, chief executive officer, VM Pensions Management Limited, said interested persons may contribute as little as $1,000 and that the arrangement is flexible.
“As your situation improves, you can go higher because we want you to be contributing more to ensure you get a good benefit,” Rose said.
He warned against persons who having invested in their children regard them as their pension plans.
Rose said it is important for every entrepreneur to invest in a pension plan, as their individual successes also helps to determine Jamaica’s future.
“We’re talking about the engine of Jamaica, manufacturers and exporters … It is more than just a business imperative. It is about providing value to the people who can drive this country to the place that we really want to go,” Rose said.
He commended the president of the JMEA and his team for piloting this initiative and making it a reality and encouraged them to continue advocating for their members to register for JMEARA.