Senate Backs Phased Lift in Private Equity Cap for Jamaican Pension Funds

The Senate on Friday, 10 July, gave its approval to the Pensions (Superannuation Funds and Retirement Schemes) (Registration, Licensing and Reporting) (Amendment) Regulations, 2026. The updated rules open the door to a gradual expansion of the share of pension fund assets that can be directed into equity in private companies.

In the opening phase, the cap on private asset holdings will climb from five per cent of total assets to 7.5 per cent during the current fiscal year. The change will remain under supervisory scrutiny, and provided no unforeseen adverse effects emerge, the Government intends to carry out a second phase that lifts the limit to ten per cent by April 2027.

Piloting the regulations, Senator Kavan Gayle said the staged timetable reflects a careful and responsible course. "Some say it's risky, but it's an important venture in terms of investment in private equity and I want to commend the Government for moving towards this modernized approach in terms of pension," he said.

Senator Gayle told the chamber that, as of September 2025, Jamaica's pension industry held around $847 billion in assets. "Increasing this allocation to 7.5 per cent could make more than $21 billion available to support Jamaica's businesses, infrastructure and innovation. It is making more investment in pension…Today, what we are doing is that we are increasing investment diversification, whilst maintaining prudent safeguards," he explained.

Opposition Senator Ramon Small-Ferguson also lent his support to the amendment. He said the higher ceiling would help spread the holdings in which pension contributors are invested. "There is the opportunity for stronger returns, better resilience, less concentration. If you look at how pension funds are invested in Jamaica, there are large concentrations. The largest asset class is actually Government of Jamaica debt. So, this move will allow for greater diversification overtime, and I think that matters directly for the workers and ultimately retirees who are saving these funds," he explained.

Senator Small-Ferguson argued that the adjustment could steer more pension capital into the real economy, including housing, infrastructure, energy, productive businesses and other long-term ventures. "Those benefits can extend beyond just financial returns, but ultimately potentially to jobs, right, to improve services, to stronger communities and more sustained economic growth," he said.