The Cabinet welcomed the Directors and Chairman and Members of the Board of the Social Security Scheme, during which Prime Minister Browne provided an update and rationale on the government’s plan to consolidate bond obligations owed to Social Security, the strategy to leverage the Jolly Beach property as an investment vehicle for Social Security, and the broader vision to ensure long-term sustainability of the pension fund.

Prime Minister stated that the Jolly Beach Hotel has positioned itself as a Strategic Asset; outlining that

• Approximately USD $5 million has been spent on refurbishing the Resort.
• The asset is now producing consistent profits and generating substantial tax revenues (around $3.5–$4 million in ABST and head taxes), and that
• The resort has accommodated 35,000 guests recently, showcasing its revived appeal and potential.

Upon full renovation and expansion, the resort will be vested in the Social Security Board, turning a previously non-performing government obligation (bond debt) into a revenue-generating asset.

• This approach provides Social Security with:
• Long-term capital appreciation,
• Steady income streams from operations,
• The ability to resell rooms under the Citizenship by Investment Programme (CIP).

The Prime Minister estimates:

• USD $100 million in gross sales under CIP,
• Net proceeds of around USD $75 million, reflecting a 200% return on the initial investment,
• A potential 15–20% annual return on investment, far surpassing returns from traditional bonds or treasury instruments.

He argues this performance would dramatically improve Social Security’s annual portfolio yield, building reserves and sustainability for pensions.

The Prime Minister pointed out that the investment is structured to ensure Social Security holds title to the asset. If the resort underperforms, Social Security still retains real estate that can be sold to recover capital.

In addition, ownership of CIP-purchased rooms remains with the buyers, but the units stay in the rental pool—generating recurring revenue. He described the as low-risk, high-return, with minimal exposure compared to investing in traditional government debt.

The Cabinet, Directors and Board Members participated in robust discussions on the issue which concluded with all parties agreeing that they were on the same path of ensuring the sustainability of the scheme. The Directors and Board affirmed that they are not opposed to the measure that brings value to the Social Security Scheme.

The Prime Minister reaffirms the government’s commitment to:

• Sustain Social Security without increasing pension age or contribution rates,
• Maximize value from underutilized national assets,
• And engage respectfully with Social Security leadership to finalize the structure.

All parties will resume planning sessions when Cabinet resumes after the Summer break.