The Covid-19 pandemic continued to have a negative impact on the Jamaican private pension industry during the September 2020 quarter, as the industry contracted by 0.08%, contrasting the 2.4% increase experienced during the June 2020 quarter. As at September 30, 2020, the total value of assets in the industry amounted to $639.29 billion. Notwithstanding a contraction, the five-year average quarterly growth of the industry was 3%. (See: Table 1 & Figure 1; details of the five-year (20 quarters) review of the average growth of the private pension sector). Evidently, asset values continue to fluctuate given the current uncertainties in the market.
The industry now consists of a total of 817 pension plans, having seen the introduction of six new pension plans. The private pension industry membership continues to depict steady growth quarter over quarter. However, there was a 12% decrease in the Jamaican employed labour force2 from January to July 2020. Consequently, private pension coverage increased by the end of the quarter. Figure 1.1 below details this coverage as follows:
12.16% interms of all plans
11.91% interms of active plans