Pension dodgers to be named
(CNS): Following allegations by the complaints commissioner that more than 1,100 employers were delinquent in their pension contributions, with tens of millions of dollars missing from funds, the director of labour and pensions has revealed that the amount missing is around $14 million and many of the delinquent payers are less than two months behind in their arrears. However, with work already underway to address many of the complaints surrounding pensions, Director Mario Ebanks told CNS that employers and companies facing prosecutions will be named and shamed, with the details of their alleged offences uploaded on to the NPO website. Government also has plans to bring the revised pensions bill to the LA before the end of this fiscal year.
Ebanks told CNS that he was not sure where Nicola Williams, the complaints commissioner, was accessing figures, which she described as “tens of millions of dollars” in her press statement last week, but he admitted that the department faced a considerable workload and numerous complaints.
Also, in a lengthy statement to the Legislative Assembly on Friday, Tara Rivers, the minster responsible, said that work was ongoing to address the problems identified by the Office of the Complaints Commissioner (OCC) but staffing and other resource shortages have hampered efforts. As a result of the work done so far, which involved writing to all delinquent employers, 562 companies had been removed from the delinquency reports by June this year and some CI$1.5 million paid into plans.
Ebanks explained that according to the latest set of complete quarterly delinquency statistics collated by the National Pensions Office (NPO) and given to the OCC, at 30 June some 1,154 companies were delinquent or in arrears for more than 45 days, representing a total of CI$14 million dollars.
“In addition, there are 167 companies on payment plans, for a grand total of CI$3.1 million dollars. It is worthy of note that the assets under management in Cayman’s pensions industry is approximately US$1 billion,” he added.
Ebanks said that the small team at the National Pensions Office, the volunteer board and the ministry responsible “have laboured diligently with a tremendous pensions backlog,” which he said was made worse by the continuing economic decline and a lack of enforcement.
Nevertheless, Ebanks said that the NPO database of complaints is being reconciled and research, inspections, meetings and communication have led to many backlog complaint files being addressed. Improved information sharing between government’s regulatory agencies, such as immigration, trade & business licensing, General Registry, and the Health Insurance Commission was also helping with enforcement and the prevention of new cases.
Despite the allegations made by the complaints commissioner in her original 2010 report and her recent statement that the employers are stealing from employees, in many cases the delinquency is short lived and negligent rather than deliberate, and the minister said in her statement that many employers “traditionally regularize themselves on a short-term cyclical basis” and don’t spiral into serious debt.
While the minister acknowledged that government has still not addressed eleven of Williams’ recommendations, Rivers said that when the revised new national pensions bill comes to the LA, it will address most of the issues the OCC raised. The minister said the original bill, which was presented by her predecessor, had been withdrawn because of a number of concerns raised by the wider public and, as a new government, the bill had to be changed in line with its policy objectives. However, she committed to having the new law in the Legislative Assembly before June 2014.
Category: Politics
Yes please name them and I for one will avoid these companies at all costs.
Great, can I start?
Amy Wolliston has known about violations filed in my complaint in July 2009 and has not enforced compliance. Mario Ebanks learned of the violations in October 2012 and has not enforced compliance.
The pension board has known since May 2011 and has not enforced compliance.
Mary Rodrigues has known since May 2012 and has not enforced compliance.
MLA's Rolston Anglin, Alden McAughlin, Ezzard Miller and Tara Rivers have knowledge of the violations and have not enforced compliance.
The DPP and ACC have knowledge and have not enforced compliance.
I am currently waiting on several FOI requests and the OCC is investigating.
There has been no prosecution and the Orders that had been issued were rescinded, and there is still no pension account with an approved plan administrator for a Caymanian!!
So, there are really 1,145 delinquent pensions…since my complaint is not included in the backlog of delinquent pensions.
This comment clearly shows the collusion among those in power to keep a lid on this.
Pointing the finger at unethical employers abusing the rights of their workers is not of interest to the Caymanian power brokers.
This is a national disgrace.
yes and what about employee paying for their own work permits and have no health insurance. as a business owner i think this is unfair to employers like mysef who is running a legit business and following all laws, i dont thinl this is fair for us. all these business need to be expose.
I dont have any employees i have partners and every week we issue dividends…. Full Stop!!! nopensions paid and not breaking the Law….!!!! I do have friends who haven't paid pension for their employees and it is not by chioce but their employees said that if they took 5% from their salaries and gave it to some shady investor who would loose 25% or more they felt like they were loosing their money hard earnt, therefore these people opened a bank account and dont deducted any funds from their staff but do put 10% of each employees salary into it. when the employee leaves they, right a cheque (with whatever little interest) to their employees to go home. No waiting 2yrs and lost money.. their employees are happy with this arangement. Back to my… im a firm beleiver in partners so which ever business i set up next, dividends weekly handed out…
Sounds like a cash business.., you pimpin'??
So when they are named as deliquent for not following the Pensions Law, this excuse will hold?
Naming and shaming means NOTHING to these people. If they had any honor, they would have paid it in the first place. Look at all the bad checks people write all over town, knowing they don't have the money, but they do it anyway. I know of several employers who treat their staff like slaves, they think their workers are possessions and treat them so badly, yet those same people are beating down the church door every Saturday and call themselves Christians. Hypocrites!
Seriously, I appreciate the numerous comments and support for my own comments in addition to the exposure of this issue by CNS…but it's not enough.
Something has to be done…immediately!! Members of government, elected and appointed, have knowledge of numerous problems, violations, etc., but yet we spin our wheels adding comments to the newest article.
Let's finally solve the issues, enforce the laws, exposé the violators, and focus on far more important issues like our values, our families, our children, and our future!
Please…let's stop the arguing, the fighting, the excuses, the justifications, the manipulations, the selfishness, the negative cycle! Let's be part of a positive cycle, responsible, accountable, honest, moral, and lead by example!!
What I don't understand is why these employers are not being charged with theft. If an employee "borrowed" cash from their employer even if the intention is to put it back at some point, they are charged with theft. Yet these employers deducted these funds from the employees paychecks for the purpose of paying the funds into a pension fund. The funds were not deposited so this is theft. Then to add insult to injury, the Office in charge is saying that basically some cases are so old they can't be prosecuted. Since no one is taking this seriously and there appear to be no real consequence then employers will continue to do this. Do you realize how disheartening it is for a person to work diligently for years only to retire and discover that their pension is not what it should be because their employer took the money or worse there is no pension at all. IT IS STEALING! ARREST THEM!
Arrest them is right! how can we let employers go free for stealing while we condem and charge the employees that steal? No wonder we have having so much muggings and home invasions. If the country wants to control the crime situation it must penalize all criminals, businesses and individuals, white and blue collar criminals. Cayman is allowing itself to become just another banana republic. Don't stop the carnival!
Ain't this the kettle calling the pot black? Isn't the Cayman Islands government the prolific abuser?
Name and shame but start at home.
You took the words out of my mouth! What exactly qualifies government to take the moral high road on this issue? While I make no excuse for the private sector employer guilty of depriving employees of pension benefits, government is hardly in a position to talk. Imagine if "government GAAP" (where hundreds of million in pension service liabilities are off-balance sheet) were applied to commercial entities? I could go on about what must be the state of mind that allows a retired civil servant to draw benefits from a DB plan (granted someone wised-up along the way and decided to change to DC) with a clear conscience knowing the tax burden this creates for generations to come but it's late and I'm rambling
Well somebody has to penalize the private sector when they do the wrong
The goverment pension scheme is underfunded by $400 million, it is defunct and is going to be a drag on this country for many years until it finally fails.
another bad idea poorly excecuted.
Government had a well run and funded pension fund long before the private sector was mandated by law to. Enough said because you know little about Cayman, but somehow JMB died and made every expat the voice of Caymanians.
I hope that topping the list will be "Cayman Islands Government"
And please name those who are not paying their P.R. fees. It need's to be collected or else, like the good old days. Bye Bye and don;t come back. Pictures are fine too.
Cayman's Pension Law is nothing but a failure….because the Law is broken by those that put the law into act..THE GOVERNMENT.
It is a little late in the game to be crying foul when for years now people that knows what is going on has been asking to have this properly examined and laws reviewed.
The previous Govt started looking at it and it seemed there was no urgency to fix it and now the PPM Govt is going to take a stab at it let us see what they will do.
Let's hope they will take the people advice on it and name some of these employers that are robbing their employees blind.
My advice to anyone holding a Pension is to at least make sure you get your statements as frequently as you possibly can and keep them in a safe place. By law your employer has to provide you with a statement when u request it.
Just make me sick to know that what you work and is saving for a raining day maybe not there when you need it.
"…name some of these employers…"
"Some" of the employers? Why not all?
How is the list compiled and how is inclusion/exclusion determined? Is exclusion determined by who you know or who you are related to? I wonder.
At least thats $14 million taht wont have been lost by the fund operators.
dont forget to name and shame the pensoion fund managers that have failed to make worthwhile returns ffor those who have been forced to contribute
I hope not MLA appears on the list. I hear there is one who pays no pension and makes his employees pay for their permits.
Which is exactly why not just the companies but their directors and shareholders must be named.
MLA against MLA for the same party? …. nah!
Don't worry no list with the real names will ever appear as those who would appear would never allow it. Politicians and families of MLAs know this will never happen.
Why don't wronged employees have a claim for breach of statutory duty against their employers in order to get their pensions topped up?
They do, but lawyers won't sue their clients.
The managers and directors would be liable in unlawful act conspiracy too, so they could not hide behind limited liability, so the staff could get at their personal assets.
Mario in the NAME and SHAME idea, could you put right beside the names of those companies, the names of the HR Managers and Owners as well. So people can see "WHO" and not just a companies name to hide behind.
OK … SO YOU DONT WANT TO CONTRIBUTE TO PENSION! No problem. Leave Cayman! And if you don't want to leave, then simply stop complaining about the government putting up the fees and duties, because it will be those fees and duties that will have to pay for the people you failed to help them retire and have something substantial to depend on! If you are against this law, you don't love the Cayman Islands and don't mean us well. You ought to be prosecuted every one of you! Or, better yet.. leave this island!
This where we lost our way, Cayman used to be the easiest and cheapest country to start and run a business, very light on the regulations. But now we have reached a Piont where an employer is now threatened with jail time if he does not organize and part pay for his employees health and pension, these are not his children they are his workers, these people should be left alone to do what they wish with their monies.
this is why we do not have a lot of Caymanians doing small business, better get a nice safe job in the goverment and live off the declining private sector.
this is not a healthy situation for the future of the island.
The health and pension laws should be repealed and it should be left up to employers if they offer a pension and health as an incentive to get good employees and it should be left up to individuals if they want it.
Something tells me you might be one of the offenders tobe named and shamed?
Me and my 1099 friends.
You know we should get together all 1100 of us and pour the wine and party at an undisclosed location. Besides already.. we are the champions 😉
08;46
i totally agree with you. we should all march to put this BS to rest. why are we forced to pay 5% of expats wages when they are not going to stay here to collect pension. This is so unjust to the businesses.
They all take their money when they leave.
Correcxt one that is stealing from his employees. They are thiefs and all you guys look at is hey I am giving them a job. You are getting rich on their hard work and then stealing from them.
08;49
Did you say the businesses are getting rich?? you must have your head in the sand!
i would ask all businesses that cant pay not to take it away from their employees in the first place.
I say give them 1 month to pay up or you shut down their business.
And please dont make them do like the Ritz deal where he go out of business then open something under a different name. Brand the individual.
Yeah close down all the small businesses and we can live of the revenues from the civil service.
My friend, just because you don't agree with something in the Law, doesn't mean you break it; especially, if breaking the law entails theft or neglect of social obligations. Think of it, some people are irresponsible and are not going to save for retirement like you. What do you do with them? Just allow them to live undisciplined lives and says that it will make Cayman into a greater place to live? No… look at the repercussions – when they become seniors there will be more cost on social services to take care of them, everytime an ambulence is discharged from teh hospital, who will pay for it? And crime, don't even mention business security from criminals, the cost you will have because you will have people without money. As a result, the private sector will have to pay for this social catastrophy more than the government. No matter how libertarian you are against a Pension Law, people are not going to save their money for their retirement and there needs to be laws to ensure the private sector is secured as well. By you not respecting the pension laws, you will be creating a situation that will bear huge cost on your business. Think about that. Government will have to make you pay more fees or higher ones in order to take care of those people without pension.
Most pensions are ponzi schemes that fail in the long run and we will still have to pick up the tab for old indigents.
So let us cut of this social services gravy train and let people fend for themselves and if they realy get old and cannot work, we help them out.
help them out? with whose money?
Seriously?
If we leave it up to the employer and employee to decide if they want to participate, who will bear the burden when those same employees are 65 years old, no pension accounts to draw from, and can't pay their CUC, water, and hospital bills? Social Services!
The serious issue at hand is the deduction of penion money from employees' wages with no corresponding deposit of the same money in their pension accounts. That's called theft!
So, with all due respect, if you have an issue running a business in the Cayman Islands, then pack-up shop and leave.
It's becoming clearer why small businesses like to hire Hondurans, Cubans, Jamaicans and Asians; because there is a greater chance that they won't whislteblow these bad practices for fear of work permit cancellation threats!
It is a shame that this sort of practice is happening in Cayman. I also wonder about the sexual harassment claims that are being made against low-wage expats, certain threats from employers that are not being reported on. If they can do what they are doing with people's pension, imagine what else they are doing in the dark! Can't wait to see those names!
We have 9000 getting money from social services already, cut them all off its a huge scam.
good business people will always make money, we will raise our prices and adjust our product mix it is the working middle class who is always going to get screwed,
You have no concept of how our economy works. When you create a situation where people have no pension and health insurance, Government has to cover it. When Government has to cover it, you have income tax and capital gains tax to generate the money.
I prefer the system we have. Play your part or close your doors.
We reached the point where there were threats of prison etc. 15 years ago when the law passed.
This socialist system of supporting every Caymanian from cradle to grave will bust this economy.
There is nothing socialist about it. Socialism is when Government pays – which is what you are espousing.
Anyway, it is the likes of you that insist you should be able to import labour, pay $3.00 and hour, and insist that they must be allowed to stay for 30 years even though that means they develop a human right to stay – leaving the rest of us (through Government) to support them.
It really dosnt matter your pension sceme is a failure that holiday that was given over the last few years destroyed any hope of retirement for people.
Your mentality of buy and sell at the top is a road to failure . you are supposed to invest even more when markets are going down that way when markets are up you are a bigger winner
you are supposed to cost average a pension anyone whom approved the pension holiday is a failure and needs to be removed from office. You have no idea how money works
Thus your Country becomes a failure
I would like to add a little more to my earlier post Even if back monies were paid it would have little effect on the value of ones pension being markets are at highs and will be going lower sooner than later that said if a person had invested some money 4 years ago it would have grown about 25% thus if the contributions were made then that would of been a good thing
if markets collasped this week one could say they did a person a favor by not putting money into a pension plan
At the end of the day though unless the pension money is put info a fantastic fund it will most likely loose money
Did that…….went to the RCIPS Financial Crimes Unit with pages of documention showing
multiple deductions on multiple paychecks over a 4 year period…..with NO DEPOSITS TO MY PENSION PLAN….documented by the statements from my pension plan.
The Financial Crimes Unit told me "there is nothing they can do as this is a case for The Department of Pensions and Labor." I was told I must keep calling them, emailing them, and stay on the Departments back……almost 1 year gone with no answers. This is a case of obvious,
blatent THEFT….The RCIPS FCU must be granted the authority to peruse these cases.
They have the authority. They are just refusing to exercise it. The Police is where the protests should be focussed !
Forget name ans shame, go directly to the financial crimes unit! If the employer is taking money from employees and not paying it to pension that is a crime! Charge every last one of them!
Name and shame AND go the the FCU. We need the name and shame so we know who we DON'T want to work for.
You mean send the list to the FCO – the Foreign and Commonwealth Office. Let them deal with it. They did a whopping to the businesses in TCI, they can do it here to the bad ones. We are still a UK colony. Let's see how much the FCO love Caymanians … fingers cross
This the same FCO that have a pension BLACK HOLE of 360 billion pounds????
You guys are so f@@@ing hateful you cant see the forest for the trees. No country can afford to pay pension in a bad econmic climate . The great USA has shut down their pension scheme in many states…try and face reality and stop tearing down what caymanians took years to build up.
I do not condone the companies that steal from their employees, and i dont blame the companies that are not partisipating in this forced savings…in these hard times. yes shut them down and let them join the SS lines 1,100 = and their employees another 3,300.
Damn bunch of fools on this site
Go start your own business and see how far you all will get!!!
But what if these companies challenge the government and win the cases? Then what?
11;05
And they will win! This forced savings of employees salary is a farce, Ponzi scheme hiding behind the name of pension.
There is a day coming when you wake up and the money grabbers will tell this country that there is no money in the ponzi scheme. And guess what? they wont be liable!
This forced savings law is a breach of natural justice to the businesses in the cayman Islands.
Where do you hear of out of 35,000 workers, 22,000 (on work permit) will eventually remove money that they have in their savings, long before their retirement age…this is absolutly madness!
Actually 9:32, it is an offense under the National Pensions Law not to deduct pension contributions from employees, it is a separate offense then to not contribute such funds. These are two different offences under the law.
and there is always theft and fraud at common law.
Unbelievable! Enforcement is the problem. What about the cases that are not being prosecuted? What about the cases that have been "time barred" due to the lack of enforcement and the delays by the NPO? What about the cases where the Superintendent enters into "confidential settlement agreements" to avoid compliance and avoid their responsibilities?
Please name and shame…but name all documented violators!! And enforce the laws! And why wait? Don't pick and choose to make the Ministry look like it's doing more than they are really doing. Stop with the excuses and justification.
As a complaintant who has been waiting over four outrageous, exhausting, frustrating and very expensive years for enforcement, providing substantial documentation of several violations…the Ministry has failed to enforce the laws and actually closedthe matter…and there is still no funded pension account established with an approved plan administrator for a Caymanian! This is because the Ministry entered into an agreement with the employer who has substantial ability to pay. Will these violators be named? According to this article, no since the NPO has failed to prosecute!
But since this case is being investigated by the OCC, it is clear how the figures from the OCC can differ from the NPO. So how do we band together and make sure the NPO is doing their job for the public?
But, instead of enforcing the "known" documented violations, the Ministry is going to "order a review" that will be complete in 2016!! It's ridiculous!!
I think naming these offenders is a great idea…enough is enough….people in Cayman get away with everything! name and shame seems to be the only thing that works these days! consequences people consequences …. I know that may be new to you but people need to face consequences!
It is a good idea to name them, I doubt if you will manage to shame them though, these employers have no conscience.
They are only able to name the ones who are before a court
TO NAME AND SHAME … something tells me this is getting nasty. I hope there are quick resolutions and people are compensated.
Well, not so bad then? and at least something is happening, and hooray for that. People trying to be sensational and create scandlas should really be careful what they say, it bounces back, always..
Why not revoke their trade and business license – or cancel their permits?
What's gonna happen with the name and shame theory.
I fully agree. Proof of a fully paid-up pension plan should be a requirement for annual renewal of Trade and Business License. Delinquent employers should not be given all this leeway to begin with! Pretty easy to resolve this issue forever.
The joke is no one inspects premises to see if they are even displaying a current trade and business license; no bank asks for it on an annual basis etc.
So it possible to operate without a trade and business license.
Any long-term non-compliant employers with no reasonable plan for becoming compliant should be penalized and have their licenses revoked and operations shut down. Jail terms should be considered for some (Caymanian or expatriate) employers.
Isn't Northward full? Do you want to pay more for them in jail? Isn't it better for them to pay up and the government receive the money and the employers monitored?
I agree if you can get them to pay up….if not they have broken the law and must be punished…otherwise nothing will change.
12;44
Pay up to who? Government? they dont get a red cent from this forced savings.it all goes to the pvivate fund managers.
That is why there are so much fuss about this savings.
I will only believe it when I see it, this culture of secrets especially among the powerful has yet to be broken.
Please name and shame overdue PR payments as well. I believe the amount due was to match the same paid for previous work permits so I do not buy the argument that people are unsure what to pay Immigration so they just didn't?
Pension payments are LAW.
Immigration is LAW.
It is time to stop trying to skirt these laws! Mario- go get the pension payments! Gary Wong please go and arrest anyone overdue on their PR- they have lost the right to remain here by ignoring the law.
i pay my taxes (overseas) and play by the rules. Others need to do the same or be prosecuted. The laws are rules are clear and not up for discussion or crony discretion.
Pay up!
While you are at it, please name and shame all those who have outstanding garbage fees, school book fees, etc, etc, etc.
Take that you hypocrites!!!
08;13
I do not have a problem paying tax on my income. but to add 5% to my expat employees salary, as a savings, so they can take it out the country, is sheer madness. If you condone this law, you and all the others on here crying to jail businesses, are a bunch of lunatics.
Why dont the government set up a proper social service tax where they collect the 20% tax and manage it themselves. I dont think the businesses will object to this….. at least the money will be here when we all get old.
Hey, have you found all those hundreds of workers with no address in Jamaica? You know, all those ones from several years ago who got sent home after they had finished all the post Ivan work. Your office told their employer to pay them, but when he explained he had no means of contacting them it seems you closed the file…
Not your fault, but you counting all that historic crap in the CI$14 million figure?
About time they name all of them because the chances of employers getting convicted in the courts is not high