Pensions due despite BAICO problems

| 10/07/2009

(CNS): Despite thefact that British American Insurance Company Limited (BAICO) is in financial trouble all employers are still being ordered to pay pension contributions for their employees. A release from the Ministry with responsibility for the National Pensions Office states that if employers are uncomfortable with that plan there are other options open to them. “Employees and employers are reminded that pension participation is a condition of employment in the Cayman Islands and neither the employer nor the employee has a choice on whether to participate in a pension plan or not,” the Ministry said.

In the wake of the Cayman Islands Monetary Authority’s cease and desist order to BAICO on 29 June, the Pensions Office, the Board and the Ministry said that BAICO operates a registered multi-employer Pension Plan in the Cayman Islands, and while the firm is experiencing financial problems, there are five other multi-employer pension plans operating in the Islands, all registered with the office and they are accessible through the office’s web-site.

The office and the board have commenced gathering data to secure the pension assets of Cayman Islands plan members and BAICO has been requested to submit further detailed information.  However the initial 3 July deadline has not been met and the Board said it is now pursuing other options to ensure compliance.

“Under the present circumstances, it is possible that employers and employees may not feel comfortable in contributing additional funds into the BAICO pension plan until more is known about their situation," the ministry said. “If this is the case, there are options open to them.”

The ministry advised employers to visit www.npo.gov.ky under the Employers/Pension Plans button on the right hand side and said other useful information is included on the web-site including information on changing plans and pension providers. It said that business owners and employees should inquire about their responsibilities with respect to pension benefits by contacting the office on 945 8960.

“Once again contributing to a pension plan, on a regular basis, by both the employee and the employer in the Cayman Islands, is not optional.  Employers are reminded, that although they get to select the “t’ype’ of pension plan to be provided (defined benefit or defined contribution) employees must be consulted on the actual plan to be used, decided by a majority vote,” the ministry stated.

The investigation into BAICO pension matters is ongoing and the Office will provide further updates as and when they become available.

The Minister for Employment Rolston Anglin also noted that recent indications by government that it is contemplating a suspension of pension payments does not mean employers can stop making contributions. He said that it is important that employers, employees and the general public are aware that there is no pension contribution holiday presently in effect in the Cayman Islands.

“The implementation of any pension contribution holiday would require enabling legislation,” Anglin stated. “The proposed pension contribution holiday is not a general suspension of pension contributions but is a specific, targeted suspension due to the current economic climate. There are many details yet to be ironed out, such as the conditions and length of time it should be in effect.”

The National Pensions Office said that the pension’s law is currently in full operation and employers and employees are still required to make contributions on earnings on a regular basis.

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  1. Anonymous says:

    This is so unfair. people i have my pension with british american and i have never seen a decrease in my funds, before you decide to trsf your hard earned money elsewhere, check around to see how much of the pension plans are losing. When I checked with british american to ask if my money was ok, i was told that the assests of the company had been transfer to a local trust company. 

    Remember the purpose of a statutory trust is to reserve funds for expected losses, do you beleive that every policyholder that the company has, will all die at the same time? or that all the pension policyholders will retire at the same time?

    The bigger picture with the financial problems is not at the local office, it is in Trinidad where the head-office is.  CIMA announced that despite the cease and desist order, the existing policyholders are safe.  The order was issued for them not to take on any new risks.

     Why don’t they talk about that and try to do something about that?  Also, the people benefiting from pension right now is the expats, cause the law is so stupid that it allows for payout to expats when they are leaving the island.  The Caymanians can’t get theirs until they retire, not for medical or any other emergency. When all the expats draw theirs, what is going to be left for caymanians. 

    As far as i am concerned that whole pensions law need to be thrown out and a new pension law written. Bermuda has an excellent one, why don’t they adapt theirs.

    SOOO sick of these people coming in not knowing the local culture, don’t care about the effects on people’s lives, as they are only here on contract and they can continue their life in their our country, and we allow it to happen. From government right down.

    Like i said before, do your homework on the other pension providers, before you loose every thing.

     

     

    • Anonymous says:

      Sir,

      I strongly recommend you withdraw your money from BritAm…They are not going to be able to pay back your pension….sorry I hate to tell you this but what makes you think that the people at BritAM are so smart that everyone is losing money but your pension is not going down..They invested all your money in Jamaica and lost it and some of your money in Miami in Real Estate..They are just showing you a piece of paper saying that you have a large pension amount but they don’t..go find out how much money they have in that trust account bet you your pension that it less then $3 million as required by the law…now go find out how much money they owe in Pension bet the level is much high like $60-$75 million..Basically, you are going to end up with no money.. I took out my pension months ago when they closed down CLICO…Sorry to tell you this but there is going to be alot of people without pensions soon e-mail me at jonathan.ebanks@yahoo.com for full story

  2. Anonymous says:

    "The National Pensions Office said that the pension’s law is currently in full operation and employers and employees are still required to make contributions on earnings on a regular basis"

    Nonsense unless there is a new definition of "Required."

    There are several hundred employers who even before the financial down-turn failed to do as "required". What is heppening to them? Nothing!