Pension suspension over for local workers

| 20/04/2011

(CNS):Government officials have now confirmed that the temporary one-year pension contributions holiday will come to an end on Tuesday, 26 April for Caymanian employees but will continue on for a further twelve months for work permit holders. The suspension, introduced by the minister for labour, was supposed to stimulate the economy but it was only taken up by a fraction of employees the pension industry revealed. Last April when Rolstin Anglin brought the amendment to the bill he said the goal was to reduce the burden on employers as a result of an increase in work permit fees and to give the numerous delinquent employers time to catch up on the significant outstanding payments.

“This measure is to try and put people in a positionto have more money in their pockets and should result in a general easing of pressure,” the minister stated at the time. “Given the economic hardship at the moment, people have been asking for some form of relief.”

However, with relatively few employees agreeing to take up the holiday the suspension had very little effect although there were accusations that some unscrupulous employers have forced employees to take-up the holiday.

With the end of the one year period Superintendent of Pensions Amy Wolliston said that employers now had to begin making contributions for all of their Caymanian employees.

“With the expiry of the suspension, participating Caymanian employees can expect to see their employer’s resumption of salary pension deductions along with the payment of these contributions to their relevant pension plans,” she added.

As a reminder to employers she also noted that Caymanians are pensionable immediately. They are required to participate in a pension plan and pay pension contributions, from their first day of employment.
Anglin said the contributions are extremely important to employee’s long-term savings for retirement. “It’s a critical part of their retirement planning,” he stated.

For details on the suspension, refer to the National Pensions Law (2010 Revision). A copy is available on the Cayman Islands Government web portal www.gov.ky , under the features section. Individuals may also contact their pension plan or the National Pensions Office on 945-8960 with questions.

 

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Comments (8)

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  1. This pension is supposed to be a secure income for people when they retire. I wonder why the pension companies are permitted to "invest" people’s money. My husband’s pension fund has already lost more than $13,000 which is a lot of money when someone retires. I am not against a pension plan but I am definitely against the companies playing with our money and seems to always be losing instead of profiting.

  2. PENSION GAMBLING! Why is my money for my future being gambled in the stck market? For a country that claims that gambling is “illegal”, why is Government then allowed under “the Law” to take my hard earned money and throw it away on the slots of the stock market? Our money should be invested here locally in fixed deposited or other funds that will allow us to have at least the money that was contributed received back when the pension is payable. At the rate we are going in the stock market, I will receive less than a 1/4 of my money invested. I believe we should have a pension fund that is secure. I do not believe that our Government should be allowed to force me to throw my money away. Why can’t I have my fund here invested in nice secure fund? (Just for clarification – I was one of the few that took the pension holiday and I would continue on the holiday if allowed)

    • Anonymous says:

      You are obviously invested in the wrong pension plan. Talk to all of them and see what the return has been,  You are generalizing based on your experience. Check with all the plans and then you can speak for all the others. Oh, by the way, more than likely you will not have any funds saved for retirement and beg the government for hep based on your comments above. The sad fact is more Caymanians are like you and not willing to get the financial education they need. Then they make gross generalizations without knowing all the facts.

  3. Anonymous says:

    With complete disregard to the topic at hand. Why dont employers offer in-house Locked-In Pension plans, whereas employees have different investment options, i.e. Mutual Funds, Stocks, etc. Instead of feeding these cash cows (Insurance Companies)? It will educate the individuals on Savings (something so many know little about), and at lease we will be able to learn about investments first hand. This could have a very positive long term effect that will promote financial stability. I think it is our money, we should have the choice to invest it as we would like. It should be just like walking into a bank and investing in a Mutual Fund or LRSP.

  4. Anonymous says:

    ‘pension suspension’…….. just another cayman oxymoron

  5. Anonymous says:

    the people proved themselves to have more intelligence than the muppets who brought in this flawed law