BAICO faces further action over pensions

| 18/09/2009

(CNS): Troubles mounted yesterday, for the beleaguered insurance firm British American Insurance Company (BAICO) when the National Pensions Office filed an order in the Grand court for the firm to supply overdue pension information. Following the appointment of two KPMG accountants, as controllers, by the Cayman Islands Monetary Authority (CIMA), the acting superintendent of pensions has taken action under the law in a bid to protect pension assets administered by BAICO.

BAICO, which is understood to hold a considerable number of local employee pension policies, is required to provide important information, which is necessary for the office to properly regulate the registered multi-employer pension plan operated by BAICO in the Cayman Islands, within 30 days. The action takes the form on an Order, as provided by section 70 of the National Pensions Law (2000 Revision), and has become necessary as a result of the repeated failures of BAICO to provide this information when previously requested. 

The insurance firm must now hand over overdue audited financial statements, their annual information return and a detailed report of all contributions received by the pension plan from inception to the end of September 2009 to the pensions office.

The Superintendent’s Order, which was served on BAICO on the 15 September, has been filed in Grand Court which means that it carries the weight of an order of the Court and is enforceable as such. 

“The National Pensions Office is working closely with CIMA in an effort to best protect these pension assets and the Acting Superintendent of Pensions has already met with the BAICO Controller to emphasise the importance of the information requested,” the office said in a statement.  “The National Pensions Board has been briefed by the Acting Superintendent and together the Acting Superintendent and the National Pensions Board are closely monitoring the situation in order to assess whether additional action is necessary under the National Pensions Law (2000 Revision) to protect pension assets.

BAICO is not allowed to engage new business following the issuance of a cease and desist order by CIMA on 29 June but is permitted to continue to receive pension contributions from existing members of its registered pension plan. 

The pension’s office said however there are alternative pension options available. “There are five other multi-employer pension plans operating in the Cayman Islands, all of which are registered with the National Pensions Office,” the office stated.

 Information on registered multi-employer pension plans in the Cayman Islands may be obtained from the National Pensions Office’s web-site at www.npo.gov.ky, or by calling the Office on 945-8960.

 

Print Friendly, PDF & Email

Category: Business

Comments (2)

Trackback URL | Comments RSS Feed

  1. Anonymous says:

    It is up to you as an employee to transfer your money to another pension plan.  It is your money, not your employers or the governments.  Do it soon before there is no money left to transfer out.

  2. Anonymous says:

    The press release says that money can continue to be made to the British American Insurance Pension Plan, but is that just throwing good money after bad. 

    Government is basically saying that it is OK to continue sending the pension contributions to the British American Insurance Pension Plan.   How can I really find out what the true position is.  Remember how Government said that our money in First Cayman Bank was OK then the following day they shut them down and we all lost money. 

    Is government guaranteeing that we will get our money back, if not then shut them down now and transfer my money to another pension plan.