The Senate on Wednesday passed changes to pension laws that will enable Government-run funds to invest in a broader range of securities.

And the Public Funds Amendment Act will also allow the Minister of Finance to increase the number of members of the Public Funds Investment Committee, which advises on more than $1.3 billion in pension funds, from five to seven.

Government Sen. Raymond Tannock told the Senate the changes would help Government to meet its goals of maximising returns while being prudent about investment risks.

Sen. Tannock said the additional securities would allow the committee to ?embrace more modern methods of portfolio management and pension fund investing?, and would see the funds able to invest in private placements and asset-backed and mortgage-backed securities.

He told the Senate that in 2005 the Contributory Pension Fund grew by almost $93 million and broke the $1 billion mark as it recorded investment gains of $83.1 million. Its annual rate of return is 8.85 percent.

The Superannuation Fund also saw an increase in 2005 of $24.8 million bringing the fund to $358.2 million. Its annual rate of return is 8.87 percent

Opposition Sen. E.T. (Bob) Richards and Independent Sen. Walwyn Hughes agreed the amendments were a positive step and said they reflected the current investment market on the Island.