KINGSTON, Jamaica – Tourism Minister Edmund Bartlett, says despite being delayed by the fallout from the COVID-19 pandemic, the pension scheme for tourism workers across the island will be introduced on January 1, 2022.
Tourism Minister Edmund BartlettBartlett, who was speaking at the official opening of the 444-suite Ocean Eden Bay Hotel, in Trelawny, on Thursday, said the introduction of the scheme is also coming at a time when the tourism sector is at a stage of rapid recovery and where workers can again look forward to a future that is filled with optimism.
He reminded that legislation giving effect to the scheme was approved by Parliament some two years ago, but that implementation was delayed with the onset of the COVID-19 pandemic.
“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,” the Minister explained.
“We are back on track and have concluded arrangements with the fund manager, Sagicor and fund administrator, Guardian Life. Come January 1, some 350,000 tourism workers can begin registration, for a sound and worry-free financial future,” he added.
The Tourism Workers Pension Scheme is a defined contributory plan supported by legislation and will require mandatory contributions by workers and employers.
Prior to the pandemic, several sensitization sessions were held with tourism workers island-wide 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,” the Minister added.
He further explained that initially, for 2022, the contribution will be three per cent of gross salary to be matched by the employer, and five percent thereafter, adding that the Government will provide J$1 billion to seed the fund.
“A key feature of this pension scheme is that it will allow workers to move around within the industry, taking their benefits, without being penalized or losing any of their contributions,” Mr. Bartlett said.
“People are the most important element of a destination’s supply side. Human capital capacity building empowers our tourism workers and elevates the quality of tourism-related services, resulting in enhanced benefits and profits for all tourism stakeholders,” he added.
Bartlett, while stressing the importance of tourism workers and their value to the sector, said that the prominent position that Jamaica holds in the international marketplace and the numerous international awards bestowed on the country “and our tourism partners” is due to the hard work and dedication of tourism workers.
“Therefore, they ought to be rewarded for their dedication and should feel as if they are truly benefiting from the sector. Equipping them to capitalize on the growing opportunities for high-skilled employment in the industry is one way in which we are doing this,” Bartlett noted.
