VM Pensions Management, a subsidiary of financial conglomerate VM Group, has tailored an approved retirement scheme (ARS) for CB Group — its latest initiative aimed at empowering employees in the agricultural sector. 

An ARS provides a tax-free way of saving for retirement, designed for self-employed individuals, professionals, and contract workers not covered by traditional pension plans. This company-administered personalised pension solution designed for CB Group’s fixed-term or fortnightly employees offers retirement plan with tax advantage.

By contributing to the retirement plan, CB employees make a significant advancement in accessible retirement planning within the national employment landscape. 

In Jamaica, fewer than 20 per cent of the approximate 1.3 million people employed have access to a pension plan. Therefore, over one million people face financial insecurity in retirement. The partnership between VM Pensions and CB Group marks an important step in addressing this pension crisis, giving access to over 1,300 CB Group employees. 

Bridging the pension crisis gap

Natalie Bennett, CEO of VM Pensions Management, highlighted the urgency needed to address the pension crisis.

“When compared to other jurisdictions, Jamaica’s coverage rate is low. What we find is that the less than 20 per cent is dismal and as we get older, there are not enough provisions in place to take care of us, so many persons face an uncertain future,” she said.

Traditional superannuation funds offered by companies cover only permanent employees.

To bridge this gap, the Pension Industry Association of Jamaica has endorsed an auto-enrolment plan in which employers are encouraged to put all team members on a pension arrangement, with the choice of opting out. Against this backdrop, VM Pensions has been actively promoting its Approved Retirement Scheme, extending retirement benefits to all workforce segments.

However, uptake of ARS remains anaemic across Jamaican businesses. 

By collaborating with VM Pensions, CB Group has taken a proactive step in securing the financial futures of its employees.

Commenting on the partnership, David Heath, group manager – People & Culture at CB Group, noted, “It has been a very rewarding experience and VM has been a true business partner on the ground with us at every single location. Together, we’ve been directly engaging and enrolling the hundreds of employees who now have access to retirement solution during those golden years.”

When questioned about the reception of the retirement scheme, Heath shared that employees have welcomed the ARS plan with much excitement and gratitude.

In fact, one employee, Malcolm Douglas, a processing worker with CB for over 17 years commented, “When I heard about the pension plan, it was like a dream come true for me and my family; I know that when I retire, I have something marvellous to look forward to.” 

Challenging the status quo in the agro-processing sector 

It is reported that only 12 per cent of private sector employers offer a pension plan and of that amount, an overwhelming 80 per cent do not make matching contributions. With the introduction of the ARS plan, CB Group has chosen to be part of the 20 per cent who contribute to their employees’ pension funds’, demonstrating their commitment to their staff and their financial well-being.

Sharon Malcom, another processing worker who has been with the Group for over 25 years, remarked, “Mi just excited ’bout it, mi just happy ’bout it… I’m so happy they gave even the extra to match!”

Bennett commended CB Group for leading the way.

“We are incredibly grateful to CB for setting this example. This partnership will help move the needle from that less than 12 per cent and get us to a more stable place where we’ll be better off as a country; they’re setting an example for other entities to follow.” 

After touring CB Group’s new Air Chill Poultry Processing Plant in Hill Run recently, Courtney Campbell, president & CEO of VM Group applauded CB Group’s commitment to sustainable growth and state-of-the-art practices in agro-processing. 

“I think this is a powerful example of what is possible in Jamaican agro-industry [and] Jamaican manufacturing, with many more companies in Jamaica to follow the example of the CB Group,” he commented.

Matthew Lyn, CEO of CB Group, expressed his enthusiasm about the initiative.

“CB Group is a family company at its very core, and we like to think of not only the people who work for us, but the families that they represent and so we are happy that we’ll be able to contribute to the development and empowerment of our staff today, but also their families and their futures,” he expressed.