Pensions and Redundancy
8 January 2026 | By Magdalena Cooper-de Neuze
Personal tools
She is a happy retired person because of proper planning
Many will lose their jobs in 2009 due to redundancy exercises. If this happens to you, the very first thing you must do is remember not to take it personally. Job layoffs are usually about dollars and cents and not about personalities and job performance.
Many will lose their jobs in 2009 due to redundancy exercises. If this happens to you, the very first thing you must do is remember not to take it personally. Job layoffs are usually about dollars and cents and not about personalities and job performance. Times are tough and companies are therefore forced to restructure. Get counselling if necessary if you have difficulty with the situation and to help you to move on to the next big thing in your life. Just as important as understanding that the redundancy is not really about you and is not to be taken personally is to very quickly determine how best to preserve your retirement benefits.
Recall a pension plan is not there to provide you with a lump sum in a redundancy exercise, its aim is to give you a stream of income upon retirement. You should therefore not follow the herd and take a lump sum if you don't have to. You should instead take steps towards ensuring as best as possible that your retirement benefits are preserved and not foolishly spent upon redundancy.
If you are a Member of an Approved Superannuation Fund, under the Pensions Act Schedule 1 you are entitled to a Statement which meets the information requirement stated in the Act. You will need this to understand what your rights and benefits are. The TD&R is the document that contains the rules of the pension plan and it is a requirement under the law that all who request a copy or to view a copy be allowed to do so.
You may be entitled to take early retirement and start receiving a retirement income immediately. Your TD&R will tell you if this is possible.
You may be entitled to leave your funds in the pension plan. Each pension plan has its own rules but usually if an employee has been contributing to a plan for more than 10 years, they can leave both their contributions and the employer's contributions in the plan until they reach the age of retirement. The benefit of this is that the deferred member will benefit from the employer's portion which they will not get if they choose to take a lump sum.
You may wish to transfer your accumulated contributions to another plan. The current pensions legislations provides that you may transfer your accumulated contributions to another Approved Superannuation Fund or Approved Retirement Scheme. This only refers to your own contributions. You should submit a written request to the Trustees regarding a transfer of the employer's contributions if you are a vested Member at your redundancy or Termination Date.
If you decide or are forced to take a lump sum you should be aware that you will only be able to get your employee contributions. The law only allows for the employer's contributions to be paid out in the form of a pension. Remember however that although this may be the option that is initially presented to you, it is not your only option.
You may contact the FSC if 'you are of the opinion that your benefits are being jeopardized'. You can go online at www.fscjamaica.org or call them at (876) 926-3917, 754-9581 or visit their offices at 39 - 43 Barbados Avenue, Kingston 5. Before you visit them go to their website and get the information they require to pursue your complaint.
Decide what it is you want and then act accordingly. It may seem a little overwhelming considering the major change you are going through but remember that life is an ever changing dynamic and at times a little strength is required. You can do it.
For customised direction on how to preserve retirement benefits post redundancy, call or contact us at 755-2093 / milestoneslifestyle@gmail.com or info@milestoneslifestyle.com
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Pensions and Redundancy
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