Senator calls for targeted pension plan for farmers

Drawing on a 2024 Financial Services Commission (FSC) report, opposition senator Ramon Small-Ferguson has highlighted the low participation of Jamaican farmers in private pension schemes, with fewer than one in every 100 enrolled.

In his contribution to the debate on the Pensions (Superannuation Funds and Retirement Schemes) (Investment) (Amendment) Regulations, 2026, Ferguson said the Government and private sector should join forces to address the issue.

He noted that the report indicates that private pension participation is approximately 49.5 per cent in the commerce and finance industry, four per cent in manufacturing, 1.75 per cent in mining and construction, and a mere 0.58 per cent in agriculture.

With more than 240,000 registered farmers locally, Small-Ferguson stressed that fewer than one in every 100 agriculture worker has any form of serious participation in a pension scheme. This, he said, warrants a specific and targeted response.

The senator suggested a Government-led effort in collaboration with the private sector to facilitate a pilot involving the Rural Agricultural Development Authority (RADA). He said farmers could be facilitated in existing approved retirement schemes, noting that the Government would not have to put in place a new statutory commitment as was done for the tourism workers.

Small-Ferguson said RADA could be used as a facilitator to allow farmers to explore their options, to enrol, and to contribute through payment arrangements that reflect the nuances of the sector.

SET ASIDE PENSION

He added that farmers could be encouraged to set aside money for a pension at the end of their planting and harvesting cycles when income comes in.

“Somebody who has spent a lifetime feeding the country should have a fair opportunity to provide for the years when they can no longer work the land,” he insisted.

Government senator Dr Dana Morris Dixon, who piloted the motion to allow for the affirmation of the regulations, said the objective is to expand investment opportunities without compromising the standards of stewardship that pensioners expect.

Protecting those savings is not inconsistent with allowing them to earn competitive and prudent returns, she said.

According to Morris Dixon, the amendment provides for a phased increase in the applicable investment limit, moving it first to 7.5 per cent until March 31, 2027 and thereafter to 10 per cent of the fair value of the assets of the fund or scheme, effective April 1, 2027.

The existing limit was introduced in 2019 and currently restricts such investments to five per cent of the fair value of the assets of the fund or schemes.

“It is important to be precise about what we are doing. We are not requiring any pension fund to invest 7.5 per cent or 10 per cent in private companies,” she pointed out.

She said the Government is increasing the maximum allocation that may be considered where an investment is lawful, suitable, commercially sound, and consistent with the interest of pension members.

Morris Dixon said retirement obligations extend many years into the future and, as such, pension funds require carefully diversified investment opportunities.

edmond.campbell@gleanerjm.com