Victoria Mutual is creating a private pension plan targeting the under-represented manufacturing market. The deal was made between VM pension and Jamaica Manufacturers and Exporters Association.
“The main target for this pension plan is the membership of the JMEA, affiliated companies, and by extension, their workers and families,” CEO of VM Pensions Management Limited Conroy Rose told the Financial Gleaner in an interview following the launch.
VM has been strategically targeting the pension market this year. Earlier in February, they launched a joint program with the transport association. According to Conroy Rose, it has been a success. This model that they are now implementing by doing joint partnerships seems to be paying off.
He also mentioned that the pension product that was developed for the manufacturing sector allows workers to access short-term loans against their pensions. The idea is not novel but can prove to be effective, especially since it reduces the barrier to entry for individuals who would’ve otherwise not opted for such an option.
As of March 31, 2022, the pensions regulatory body, the Financial Services Commission, FSC, has reported that the total value of assets in the Jamaican pensions industry amounted to $712.26 billion. Total membership stood at 142,778, representing an 11.36-per-cent coverage of the labour force, according to the FSC.
The FSC is reporting that the pensions industry experienced an average growth of 2.39 percent per quarter over the past five years. It has been said that the employed labour force increased by 1.81 percent during the quarter ending March 2022.
At the same time, the regulator said membership in private pension plans increased marginally by 0.71 percent, but there was a 0.88-per-cent decrease in private pension coverage for active plans to 11.19 percent as of March 31, 2022, while total private pension coverage decreased to 11.36 percent.
