VM-Jamaica Chamber agreement seeks to change pensions culture in Jamaica
Published:Friday | August 16, 2024 | 12:08 AMLuke Douglas - Senior Business Reporter
Senior An agreement signed between VM Pensions Management Limited and the Jamaica Chamber of Commerce, JCC, promises to bring thousands of workers under the pensions umbrella and improve long-term savings among the Jamaican workforce.
An estimated 80 per cent of Jamaica workers have no pension arrangement in place, a situation which the agreement seeks to change by offering a range of financial services to JCC member companies and their employees, and eventually thousands of workers all over the country.
Group President and CEO of VM Group Limited, Courtney Campbell, speaking at the signing at the JCC’s offices in Kingston on Tuesday, said the agreement seeks to “foster greater financial importance and well-being for thousands of Jamaicans, and create a powerful and potentially life-changing platform for employees of JCC member companies to make meaningful steps towards their financial goals”.
JCC President Phillip Ramson said that while pensions are a crucial component of financial security in Jamaica, currently 80 per cent of the workforce is not enrolled in any plan.
“This gap highlights the urgent need for innovative solutions, so that every Jamaican can enjoy a secure and comfortable retirement,” said Ramson. “This collaboration will not only help to bridge the pension coverage gap, but also stimulate the culture of long-term financial planning and security,” he said.
JCC CEO Larry Watson told the Financial Gleaner that while the Jamaica Chamber has about 250 members, there were 15 other chambers of commerce throughout Jamaica, which could eventually become part of the agreement.
He said many persons were unaware that individuals and workers on contract can join pension plans, and can transfer their pension contributions to a new plan when they change employment.
“(This agreement) won’t affect companies that already have pension plans in place; it will provide another option for companies and their employees,” Watson said.
Under the agreement, VM Pensions will partner with the JCC to provide a bundled suite of solutions from across VM Group Limited to JCC members, to include preferential rates and discounts on products from VM Pensions, VM Wealth, VM Property Services, VM Building Society and BCIC; as well as a financial education programme.
VM Pensions CEO Natalie Bennett, in underscoring the importance of pension planning, said “some persons continue to think, falsely, that their children and remittances will be their pension, but we do need to make provisions for our financial needs in the future”.