More than half of the 807 registered pension funds and retirement schemes in Jamaica are inactive with most of them in the process of being wound up.
This disclosure was made by executives of the Pensions Industry Association of Jamaica (PIAJ) during the Jamaica Observer Monday Exchange last week.
President of the association, Sanya Goffe pointed out that just under 400 registered pension funds and retirement schemes are active in Jamaica.
She explained that most of the registered pension funds and retirement schemes have become dormant and are in the process of being wound up.
Goffe, an attorney by profession, estimated that about 390 are in the process of being wound up. The winding up of a pension fund or retirement scheme is a process, which results in the distribution of the assets of that fund or scheme to beneficiaries.
Pursuant to the Pensions Act, a fund or scheme can be wound up either voluntarily by the trustees of the fund or scheme or by a court petition from either the trustees or the Financial Services Commission, which regulates the pension industry worth more than approximately $700 billion.
Goffe explained that while these inactive pension funds and retirement schemes are still on the books, their investment portfolio is still active and earning returns for beneficiaries.