Reform is needed in Trinidad and Tobago’s pension sector, as despite the solidness of the country’s pension industry, there are still risks.
Minister of Finance Winston Dookeran made the statement on Friday as he addressed a seminar themed ‘the future of the pension industry in the Caribbean’.
He said savings, investment and demographic challenges were present in the current industry.
Regarding investment he said the return on investment was lower and regarding demographics, in the United States alone the number of persons receiving pensions had grown from 15 percent to 25 percent.
The minister added that the Central Bank was involved in a new policy document which would enhance governance and enforcement of the local pension regulatory system.
Dookeran said two risks that faced the local industry were “the absence of a workable compact as it relates to labour unrest in the country and management of our future economic direction.”
He added that another risk was the investment gap emanating from the public and private sectors which includes the energy sector.
“The Ministry of Finance will aim to close this gap by executing the relevant policies,” the minister said.
Despite the challenges, Dookeran said the local pension industry was anchored for the financial sector and described it as solid.
As such, Dookeran said the Ministry of Finance would widen the pension net to include the self employed and daily paid workers. He said this would ultimately improve benefits to widows and orphans.
He said, “Strides are being made by the Ministry of Finance to widen the net of beneficiaries of the National Insurance Programme to include self-employed persons and to improve management of its funds.”
Dookeran added that improvements in the survivors’ benefits for widows and orphans are also in the pipeline as well as a pension programme for daily paid workers.
