After more than 50 years of Employer-sponsored Superannuation Funds being regulated under The Income Tax Act 1955, Jamaica’s Pensions legislation – The Pensions Act 2005 and the Regulations 2006, came into effect on September 29, 2006.  As a result no Employer can operate a Superannuation Fund that is not registered by the Financial Services Commission (FSC).  The following is an example of the Jamaican laws that comprise the Pensions legislation:

The Trustees Act, 1897: provides guidance on the standards of behaviour for Trustees
The Income Tax Act, 1955: provides information on the 3 types of Retirement Savings that qualify for Approval and the tax-deductible and tax-deferred benefits; the framework for establishing, operating and winding-up a Plan;
The Pensions (Superannuation Funds and Retirement Schemes) Act, 2005 and The (Governance) (Investment) (Registration, Licensing and Reporting) Regulations, 2006: Regulations by the FSC (www.fscjamaica.org) focused on monitoring Approved Superannuation Funds and Retirement Schemes, standards of duty and care for Employers, Trustees, Pension Advisors and Professionals (actuary, auditor, administrator, investment manager, etc);  The (Governance) Regulations provides information on the documents that must be given to Plan Members and their beneficiaries;  The Board of Trustees must include Member-appointed, Deferred Pensioner and Pensioner-appointed Trustees, where applicable.
You are encouraged to purchase your own copies of these documents for your home library. Why? The (Governance) Regulations 2006 Section 7 specifies that Trustees have the duty to preserve a terminated Member’s benefits for a period up to150 years. Section 7 (1) (o) (i) and (ii) states where the monies or benefits remain unclaimed after 5 years, the – (i) in respect of an ongoing fund or scheme, after advertising annually in accordance with paragraph (n) for a period of not less than five years, retain the monies or benefits shall not revert to such fund or scheme, except after a period of 150 years; (ii) in respect of a fund or scheme which is being or is to be wound up, after advertising annually in accordance with paragraph (n) for a period of not less than five years, shall pay the monies or benefits payable into the Supreme Court not later than six months thereafter.

When you are making your purchase of the laws, also include a hard cover binder, dividers and request that the documents be punched and bound into the binder. The documents can be purchased from the Jamaica Printing Services and it is located at 77½ Duke Street, Kingston or you may contact them via the telephone at 967-2250/3982 or 948-4951.

Effective September 29, 2006 the legislation required all Superannuation Funds to be compliant with The Pensions Act and Regulations.  Unless a Superannuation Fund’s Trust Deed and Rules were compliant in every way, the documents would be amended to comply with the legislation.  The Employer and the Trustees are aware that the required amendments should be completed with advice from an Attorney (Pensions) and Plan Administrator.  Additionally, there is a requirement for the Fund to be registered and the Trustees licensed. The registration requirements attract fees and this may affect the investment yield or credited interest to be applied to the Fund and each Member’s contributions.

The following are some key points that should help you to understand the benefits that are being accumulated in an Approved Superannuation Fund:

Know the type of Plan.  Is it a Defined Benefit or Defined Contribution?
Know the vesting type, period and conditions.
Keep your pay slips and Annual Member Statements until your retirement date.
Your contributions are tax-deductible benefits for a calendar year – January to December.  If there is an error in your contributions it must be corrected by December 31 of each year.
Know your pensionable salary.  This could be different from your gross salary.
Ensure that your beneficiary data is up-to-date.
Obtain a copy of the Fund’s constitutive documents (Trust Deed & Rules) and the Member Handbook.
The Income Tax Act, The Pensions Act and Regulations have many sections dedicated to the rights and benefits of Plan Members and their beneficiary(ies). Purchase a copy of these documents, read them and ask questions.  Your Employer-sponsored Approved Superannuation Fund provides benefits in the event of death, disability and retirement.  It’s your right to know what is provided under the laws of Jamaica.

Contributed by:   
Magdalena Cooper-de Neuze, LUTCF, CLU, CH. F. C.
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