TAX HURDLE OVERCOME. FINAL DISTRIBUTION TO DEFUNCT AIR JAMAICA PENSION FUND BENEFICIARIES WILL FOLLOW, TRUSTEES SAY.
The Trustees of the Defunct Air Jamaica Pension Fund were granted a waiver of Withholding Tax by government so that sums that were being accrued for this purpose will now become available for distribution to the beneficiaries.
Once the Trustees have been advised by their accountants, PricewaterhouseCoopers and by their actuaries, Watson Wyatt & Duggan of the net sum available, they will give instructions for the preparation of a final distribution to beneficiaries. “Thereafter, .the Trustees will commission and distribute final audited accounts to the beneficiaries and then apply to the Supreme Court of Jamaica for directions regarding the termination of their services as well as the custody of any unclaimed funds through the Accountant General’s Department or otherwise, as may be ordered by the Court,” advised Donovan Walker, representing DunnCox, the Trustees’ attorneys.
“We are delighted at this final outcome,” agreed Trustee Chairman Dr Ian Blair and Trustee Joy Charlton. “It has been fourteen years’ of perseverance, added Dr Blair. “We the Trustees have been in business much longer than we had had anticipated and we know that the beneficiaries will be relieved to learn of this favourable conclusion. ”
The Defunct Pension Fund was created following the privatization of Air Jamaica in 1994 by government, making approximately 2,600 former employees redundant. The pension fund was terminated and the government claimed the balance of the fund.
A legal battle ensued, finally reaching the Privy Council in 1998. The Privy Council’s decision in1999 ordered that the employees’ contribution to the fund be returned to them with interest. This was done by government over the period of about a year starting on May 15, 2001.
To date, about J$850.3 million has been distributed to 2.706 former employees.
The 2009 audited financial statements have been posted on the Fund’s Website. Beneficiaries are advised to consult the Website for details as well as for other current information at
www.airjpension.com
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MEDIA CONTACT:
Ms. Merisa Davidson
935-4741
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