Bartlett urges takeup of Tourism Workers Pension Scheme

TOURISM Minister Edmund Bartlett has urged all players in the hospitality sector to recognise the importance of the Tourism Workers Pension Scheme (TWPS). He noted that the scheme had the potential for nearly 500,000 contributors, allowing for trillions of dollars to be made available for investment in the economy.

Speaking at the first annual general meeting of the scheme, held in hybrid form at the Montego Bay Convention Centre recently, Bartlett pointed out that the TWPS, launched in January 2022, “up to July 21, 2023, had membership enrolment at 6,214 with contributions totalling approximately $876 million”.

“This public savings become a pool of capital that is available for on-lending for infrastructural development and investment in commercial activities, with high levels of appreciation, and the returns come back to build the fund and to strengthen the capacity of the country itself,” Bartlett pointed out.He encouraged employees to contribute a higher portion of their earnings, 10 per cent, ensuring a pension higher than the $200,000 per year minimum benchmark.

Bartlett also pleaded with delinquent employers in the tourism industry “to step up to the plate” and honour their commitment to workers to match the five per cent contribution” made by members of the scheme.

“This fund could also be accessed for investment in tourism as employers would in time be able to borrow for expansion and development. The good news is that the Government has provided an opportunity for tax relief from that contribution,” Bartlett explained.

IMMEDIATE BENEFITS

As at January 1, 2023, the contribution rate for members of the scheme was increased from three per cent to five per cent of their earnings, to be matched by a five per cent contribution from their employers.

The scheme is designed to cover all tourism workers, 18-59 years old, whether permanent, contract or self-employed. This includes hotel workers and people employed in related industries such as craft vendors, tour operators, red-cap porters, contract carriage operators and workers at attractions.

Benefits will be payable at age 65 or older.

The Government of Jamaica committed J$1 billion to seed the scheme in order for qualified pensioners to reap immediate benefits. Sagicor Life Jamaica manages the fund and Guardian Life Limited its administrator.

Meanwhile, Bartlett told The Gleaner plans are in place for a major public-education programme targeting tourism workers at all levels and senior students in high schools.

“The pension scheme is not just about providing a social safety net but also building the culture of saving to create domestic savings,” he explained. “The pension programme is one element of a broader strategy aimed at rolling out an architecture to create a labour-market arrangement for tourism overall that makes our industry more attractive and workers feel more secure and that their future is also assured.”

The tourism minister said the second element was training and certification of the sector’s workers whereas the third was ensuring that classification is brought fully in line with remuneration.

“What will eventually happen in the industry, Bartlett pointed out, “is a new system of meritocracy with equity in which you are trained, you qualify, you’re certified, you’re classified, hence you cannot be denied access.