THE Jamaica Chamber of Commerce (JCC) and VM Pensions Management Limited (VMPM) have signed a memorandum of understanding (MOU) to offer JCC members access to pension funds and financial services at a discounted rate.

This strategic partnership aims to enhance the financial well-being of JCC members and their employees.

The initiative addresses a critical concern, highlighted by JCC President Phillip Ramson, that 80 per cent of Jamaica’s workforce lacks pension coverage. This alarming gap necessitates bold action, driving efforts to guarantee a secure and comfortable retirement for all Jamaicans.

““I thought that the chamber of commerce needed to engage with the VM Group to promote pension funds in general. When you look at the number of individuals in Jamaica who are on a pension fund, it’s less than 160,000 out of an employed workforce of over 800,000. So, a very small number of people are participating in a pension fund. And it is a concern: I want people to be able to survive comfortably when they reach retirement age. How will they manage in that stage of their lives?” Ramson asked rhetorically.

The Jamaica Chamber of Commerce (JCC) encompasses a broad spectrum of businesses, ranging from micro, small, and medium-sized enterprises (MSMEs) to large corporations and individual entrepreneurs. A significant finding by the JCC revealed that most of these businesses, excluding extra-large corporations, lacked pension fund participation. In response, VM Pension, a JCC member, collaborated with the chamber to explore solutions for increasing pension fund engagement among its members. This partnership, initiated last year, aims to debunk the myth that pension schemes are exclusive to large organisations. VM Pension was selected as the ideal partner due to its active involvement with the JCC and the natural connection established through Michael McMorris, the chamber’s immediate past president, who serves as chairman of the VM Group.

In a shift from traditional pension norms, the JCC is democratising access to retirement plans. Historically, companies would offer pensions as a benefit, but this new approach empowers members to take control. As a member of the Jamaica Chamber of Commerce (JCC), VM Pensions has joined forces with the chamber to deliver exclusive advantages to its members. This partnership enables the JCC to secure privileged pension rates, providing members with expert guidance and amplified negotiating power, ultimately simplifying pension planning and reducing costs.

“This plan is built on our approved retirement scheme, our prime approved retirement scheme. And so what it is, it will allow JCC members to make a contribution towards their futures. The employers, on the other hand, will have the choice to make a contribution as well. It is not mandatory,” explained Natalie Bennett, CEO of VM Pensions Management Limited.

Under the VM bundled benefits package, members will benefit from pre-approved credit cards, preferential foreign exchange trading rates, discounted property valuations, and competitive margin loans. Additionally, they will receive exclusive discounts on insurance premiums from British Caribbean Insurance Company (BCIC), a VM Group affiliate. This comprehensive package also features a tailored pension solution designed to cater to employees across all levels, from permanent to contractual staff.

“About 80 per cent of our portfolios have been exceeding their respective benchmarks. So, we would say that they are doing relatively well,” Bennett told the Jamaica Observer when questioned about the pension fund’s annual performance. “Once our members are able to get returns that are in excess of inflation and exceed the respective benchmarks, then that’s a good thing.”

Recognising the importance of financial literacy in achieving long-term financial success, VM Pensions has also committed to partnering with JCC to deliver a comprehensive financial education programme. The program aims to encourage saving and investing, highlight the benefits of proper financial planning, promote adequate preparation for retirement, and emphasise responsible borrowing. This will include both electronic and face-to-face sessions, as well as video and written communications. It’s a Prime-approved retirement scheme (Prime ARS) that serves entrepreneurs, contract workers, and employed individuals without existing pension plans, empowering them to prepare for the future and reduce dependence on social security. The JCC has already set the stage for the next phase, scheduling a presentation by VM Pension for its membership of just over 300, slated for October or November.

“I think that it’s important for us to educate and communicate to our members what’s available in the workforce and in the business community. Because a lot of people, you know, just go to work, they come home, and they’re thinking day to day, week to week. People are afraid to put something aside because they can’t afford it on a week-to-week basis, but I think what people don’t realise is that at some point, retirement is going to come. And if you don’t have something put aside, then you’re going to face a bigger problem at that time,” Ramson shared with the Business Observer.