Pension suspension over for local workers

(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 position to 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.