Ex-pats get window to access pension cash

| 02/12/2016 | 85 Comments

(CNS): The employment ministry has announced that the first of a long list of amendments made in May to the law dealing with the mandatory pension regime in the private sector will come into effect on New Year’s Eve. But it will take more than three years before the entire piece of legislation and regulations will be fully implemented, paving the way for expatriate workers planning to leave in the next year or so the chance to get a refund on their contributions. The change to the retirement age will happen immediately but other elements of the law will be implemented in February and March.

In a release from the employment ministry, officials said that parts of the law dealing with transfers and refunds will commence at the end of 2017, one year after the start date for implementation and over the following two years. On 31 December 2017 the criteria for transferring pensions overseas will be the termination of a member’s employment, the member no longer residing in the Cayman Islands or the end of pensions contributions for a period of 2 years or more.

Under the new law, refunds of contributions will no longer be allowed unless the member – who has attained the normal age of pension entitlement (65) – can provide evidence to the Director of Labour and Pensions that he/she cannot transfer the pension benefits to another pension plan, pension entitlement savings arrangement or life annuity. This amendment to the law will commence in three years, on 31 December 2019.

“This will allow members who are currently considering utilising the refund option the ability to do so, as well as give employers time to plan in the event that employees decide to leave the jurisdiction,” officials said about the elements of the law that have fueled some of the significant controversies still relating to the amended legislation. The decision to take three years to fully implement these changes will give workers the chance to leave Cayman and still get a direct refund.

Employment Minister Tara Rivers, who has responsibility for private sector pensions, described the changes as a milestone as the law had not been changed significantly for more than 18 years since the regime was first launched.

“We are happy to have taken this significant step forward which has resulted in the Office of the Complaints Commissioner (OCC) confirming that the Ministry and the Department of Labour and Pensions are substantially in compliance with the recommendation made in the OCC’s 2010 Own Motion Investigation Report entitled Penny Pinching Pensions,” Rivers said, adding that the refinement of the regime would be a “work in progress” and government would continue review the regime.

Setting out the timetable in a media release on Friday, officials said that as of 1 January, the “normal retirement age” will be replaced by the “normal age of pension entitlement” to remove enforced retirement and move back the date when people can draw on a pension from 60 to 65. However, people over the age of 48 in 2017 will still be eligible to opt for 60 as the normal age of pension entitlement but those aged 47 and younger in 2017 will fall within the provisions of the new law.

The other major amendment that will start on New Year’s Day is the maximum pensionable earnings, which will increase from CI$60,000 to CI$87,000, forcing employers to pay contributions on more of their better paid workers’ earnings. The maximum amount does not prevent bosses or workers paying in more if they choose to do so.

In February more changes will be implemented, including the increase in and introduction of new fines, such as administrative fines, which will be defined in regulations. Then in March changes relating to employee definitions will come into effect. Caymanians who are under 23 years of age and pursuing full time education and their employers will be excluded from the mandatory contribute regime.

A new definition for domestics will mean that their employers are exempted from having to pay pensions, not just for those “employed to do housework in private residences” (private maids), but all domestic workers, including maids, child care workers, care givers or even gardeners, even if they are working full-time, if they are an independent contractor or an employee of an independent contractor.

With a number of significant changes happening in the first three months of next year, Christen Suckoo, chief officer in the ministry, said people needed to get to know the changes and how they will be effected.

“These changes are significant for various segments of the population and we urge employees and employers to familiarise themselves with the new law,” Suckoo said. “The Ministry and Department of Labour and Pensions will continue to provide education and information regarding the changes made as a result of the National Pensions (Amendment) Law, 2016, and the Department of Labour and Pensions will continue to meet with the pension plan providers to go over the changes that are occurring in the law.”

For more information about the National Pensions (Amendment) Law, 2016, contact the Department of Labour and Pensions on 945-8960, email the Department at dlp@gov.ky or visit their website at www.dlp.gov.ky.

A copy of the National Pensions (Amendment) Law 2016 (Commencement) Order, 2016 and the Normal Age of Pension Entitlement Option Order, 2016 can be found on the CNS Library.

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Comments (85)

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  1. Anonymous says:

    You cant enact a law of this type and play with others money who have already been making future plans based upon the status quo. This law needs to be amended so it only applies to new expats.

  2. Anonymous says:

    Somebody needs to setup a website so that expats can get together to file a class action lawsuit or petition the government. And by government, I mean the real governement, the british government.

  3. Anonymous says:

    Why would employers need to plan anything in regards to a former employee? Maybe I am reading this incorrectly, but it doesn’t make any sense to me. If you are not in my employ why would I give two shillings with what you do with your retirement benefits?

  4. Veritas says:

    I can only assume the Chamber’s Pension Fund is run by a bunch of chambermaids.

  5. Anonymous says:

    If you want xpats to leave, make it easier for them to take their pension money, not harder.

  6. Anonymous says:

    Been on island for 10 years, paid $6k a year into the pension pot for each of them. Even though the markets have been doing well guess where my pension pot stands right now? $58k. Utter incompetence. Please, for the love of god, DO NOT RELY ON THESE ***** for your retirement.

  7. MM says:

    I would say this is a much more agreeable piece of legislation than what I would have had written up.

    I have seen much suggestion that our people should learn to save for their own retirement and apparent indication that many on-island feel that our local elders should suffer and starve if their families do not pick up the slack and that the reason we do not have the funds is because of no income taxes etc.

    Pensions for those on work permits should be terminated completely in its current form – the 5% contributed by the employee can go to a “retirement savings” and the 5% contributed by the employer should all go to a central “tax, duty, work permit holder fee” account (or whatever the government wants to call our version of taxation for this) and held for the expenses of running this country. Employers will pay this fee monthly in additional to the usual work permit fees.

    It would ensure that everyone does their part to make positive changes in this country instead of spurring mockery across these comment feeds about our young people, our children, our elderly, our schools and our people.

    We can fix our education system, our impoverished neighborhoods and fund programs to assist our youth – every other country does it but yet for some reason when we make these suggestions for the people of the Cayman Islands it is labelled as “hand-outs”.

    Hire the best teachers, best counselors, offer bonuses for teachers who have made the most impact on their students (and make the students vote for them!), get severe on all types of crime and adapt a no-tolerance approach to violence – the initial expenses may be high but if implemented correctly it will drastically reduce the expenses of this country overall.

    Better educated children will mean they do not have to rely on welfare, stricter punishments and deterrents for crime will save hundreds of thousands of legal aid and court expenses.

    So, 5% of all WP holders income to gov and we can start addressing some of the issues that our government claims to not have the funds to address and that has everyone gawking disgusted at our people, sounds like a win-win to me.

    This simple legislative change would provide an additional annual income to this country of over CI$20 million dollars if we had MLAs with the back-bone to do it.

    • reality check says:

      MM your heart appears to be in the right place, but your head is detached from your body and swimming far out in the ocean if you seriously believe that giving this (or any) cayman govt an extra $20m per annum on top of existing funds will somehow miraculously fix the issues you raise in your post.

      Here’s a reality check. It won’t. It will simply give them a further $20m to fritter away! A well run govt with competent MLA’s could achieve the results you want with their current budget. It is a convenient excuse to blame a lack of funds when the reality is, years of poor financial planning, non-performing MLA’s and misappropriation of the public purse has got Cayman to where it is today.

      Back in June, govt projected $1.2billion revenue for the following 18 months. That equates to $800m per annum. Still, with all that money, they can’t fix a dump, tackle crime, resurrect education, the list goes on. But if only there was an extra $20m…

      The answer is not more money. It is instead better governance of the pot they already have. Again, i appreciate your sentiment MM, but you need to pull yourself towards yourself and come up with better ideas because this one is, clearly, poorly thought out and lacking in substance.

      • MM says:

        When has it ever been a bad idea for a government to increase revenue?

        Or is it only when it threatens the income of 3/4s of the one-sided readers of these news feeds?

        America boasts of being the greatest nation, and yet has some of the highest income tax and yet you attempt to put your foot on me for suggesting we adopt a proven strategy of increasing country funds?

        Please spare me.

    • Anonymous says:

      So we should fund your inability to plan and think ahead? Head in sand blaming everyone but yourself for your own failings whilst punishing those who already give a lot. Welcome to Cayman!

    • Anonymous says:

      It hasn’t gotten through your thick skull yet, you cant simply steal people’s money, especially people who you invited and where rules already existed for expats to create strategies for thier familes for the future. If you want to change the game then apply it moving forward for new employees(of course no one will want to move here anymore). There will be a mass exodus, and mass lititation in which this new law will need to be amended. Mark my words, your politicians have gone too far this time and have over-reached out of panic of not being able to live outside thier means. Your leaders do not know the meaning of sacrifice, and they want to live with the wealth of the US, but they have not done anything to earn it.

  8. Anonymous says:

    It christmas time in da government.

  9. Anonymous says:

    The new law should only affect new expats who start working on the day of the enactment. Everybody else had signed their employment contracts based on the current law. It is illegal unilaterally change legal basis of the existing contracts. Provision for pension is a part of the each employment contract.

  10. Anonymous says:

    Outright stealing pensions is against the law in Britain, yes? Are we not under british control, because this is a perect example of why you can not put these indigenous scam artists in control.

  11. Anonymous says:

    How is it possible if you leave the island and not to get your cash payout. So I will be recieving a pension check from the Caymans if I decide to live somewhere else a few years before I retire, or do I lose all my contributions and interest. The lack of forethought boggles the mind.

  12. Anonymous says:

    Sane ex-pats should consider if this is a good time to quit since otherwise they should factor in losing most of their Cayman pension fund.

    • Anonymous says:

      And some caymanians can now finally get back to blowing all their cash on the weekend because a sucker expat has them covered for when then retire.

  13. Anonymous says:

    This island aint big enough for both of us

    • Anonymous says:

      Just rememeber to stop taking your trips to the big island to buy stuff and for medical help, because there is a new sheriff in town on the big island.

  14. Anonymous says:

    I am so glad I left and that I managed to get my pension cashed out. I can restart my life in a more stable country not so prone to changing the rules all the time.


  15. Anonymous says:

    Well, one good turn deserves another. I know that some of the backrooms of the immigration department of the US are considering a 25 year retrospective ban on anchor babies in addition to the immigration deportation orders coming up in the next months. Maybe the US can put a ban on Caymanians using their medical or educational services or investing in the US since most of that money will have been stolen through drug running, stealing pensions, or fake rate increases in the medical insurance.

    Glad I left 6 years ago with my pension in 2. The place mixes beautiful blue skies each day with an utter two faced ugly parasitic culture vs a plastic “kindness”. That can confuse you a bit, but get out now. The modern rich Caymanians are lazy and will change laws to steal your pot. They are not the Caymanians of the 60’s and 70’s with innovative ideas. Making you wait longer to collect your pension is the same rap you heard from Madoff or those involved in pyramid schemes.

  16. Anonymous says:

    Oh well, what do you expect from a people who celebrate thier ancestors who would lure ships to their ruin on their reefs and then offer their help while at the same time steel the cargo.

  17. Anonymous says:

    What legitimate interest does the Cayman Government have in restricting the use of Cayman pension pots of those that have left the nation?

    • a nony mouse says:

      Economy of scale – larger pension pots can demand lower fees from service providers.

      • Anonymous says:

        This makes me sick to my stomach why because that was not in the contract all long but yet it applying to expat who been there over 4 to 5 years that’s ugly…

    • Anonymous says:

      They hope they could keep it, should you kick the bucket or just forget about it, then they would enact a law that would allow them to expropriate it as a “dormant” account.

    • Anonymous says:

      The money will be used to overfund voters’ pensions in the short to medium term. Be afraid, be very afraid.

    • Anonymous says:

      None, which is why it wont hold up in a court of appeals all the way upto the crown. This is a disaster in the making, and the lawyers and politicians are the ones who will win out.

  18. Anonymous says:

    Pension Funds have been robbed, mismanaged and fraudulently invested.
    The whole scheme is about to collapse.
    If everybody requested their money now, it would be discovered that there is not enough cash to pay everyone back.
    The government cannot afford this information to leak out or it would cause an uproar.

    We are going to create a new Pension Scheme soon. One where the majority of the investments are in local, profitable enterprises such as utilities and necessities.
    There should also be some government bonds.

    When the expats leave, they should get their money same day! The only reason for these delays is to hide the truth.

    Unfortunately, the revealing of the status of Cayman’s Pension Funds is not far away. There will be a huge shock.

    • a nony mouse says:

      On the contrary Cayman’s private pensions are 100% funded and invested in liquid assets – you are confused between the private and public pensions systems which have completely different laws and regulations.

      • Veritas says:

        That’s more than you can say for the Civil Service. Government is continually raising it’s contribution (read the taxpayer) to fund shortfalls, currently 17% of salary whilst the civil servant contributes zero.

  19. Anonymous says:

    What’s the sense in putting money into a pension fund that only gives you $1000 a month when you retire…Alden and Marco, I want you to think about all the people of these islands who have not been as fortunate as you to have been paid high salaries and have extra to supplement them in retirement. What will happen to us? How can we survive on $1000. Can that pay mortgage/rent, CUC and water and still give us something to live on? Will we be subjected to going to the NAU for help..I am a proud Caymanian and doing my best to save but this is not what I want for my future..

    These politicians are keeping us poor to control us, not just now but even after we have retired..

    Why not just scrap this pension foolishness as it is not working as the only ones making money are the administrators? Why not trust us to invest our own money? I know just with the little savings I have, I am getting a better return on my money than my pension plan is. The good part about this when I retire I can use it as I please and not subjected to a mere government regulated measly $1000 a month.

    Shame on all of those in our Government who have allowed this sham and rip off scheme to go on for so long!!

    • a nony mouse says:

      This is not in fact the case.

      The reason why many people are currently only receiving 1k per month is that the system is still immature. People only began paying into private pension in late 90s and so have not had enough time to build up large retirement funds. Eg if you were earning 60k+ since 1999 the most you would have put into a pension fund is $102k spread across 17 years – with growth you might be talking about a fund of $180k. Mortality tables give average age of death for women at 81 so that $180k would need to last you for 20 years if you retire at 60. That works out to 9k per year whereas everyone is allowed to take minimum of 12k per year (it increases by 2%) each year until the fund is used up. In 15/20 years when the pension system is much more mature people will have much larger balances and will therefore receive larger pension payments.

      At the moment if you put away more than the minimum amount required those are considered “voluntary” and you can access those funds at will once over 60.

      Alternatively, at retirement age people can also use their fund to purchase an annuity which will provide them with an income but if you have a small pot of money to last you those 20 years then you will receive a lot less than 1k per month

  20. McCarron McLaughlin says:

    Dear CI Government,

    It’s only a matter of time before the big market crash happens and everyone will have to start from scratch again.

    Soon we will realize those paper financial products that our pension are invested in is not worth the paper they are printed on.

    Government is missing out on the larger problem with pensions.

    I’m asking the government to explore the possibility with the pension administrators of creating a local pension product that invest primarily in hard assets like gold, silver and real estate, pensioners should have the option of investing up to 50% of their pension in the product, the objective of the product should be to maximize the longterm capital preservation.

    We need some mechanism in place to protect pensioners against cyclical events or at a minimum minimize any potential loses, there has to be hedge against what is presently offered by the pension administrators, these folks get a free pass with our money.

    I’m 37 years old and I won’t have enough pension funding for retirement if I don’t guarantee at a minimum 3% annual return on what I have saved now.

    The taught is scary of one market event occurring and wiping out all of my gains and I’d have to start all over, it’s in government’s interest to address this threat now or in the future it will have to deal with it through our already overburdened social welfare system.

    Remember real wealth isn’t stored in financial paper products.

    • Jotnar says:

      In the current market guaranteeing 3% ( gross let alone net of fees) is fantasy land. Your need does not translate into what’s actually possible.

  21. Anonymous says:

    So really just another expat TAX. They need it to keep their own pension plan from collapsing. Just like the forced on island medical insurance that is worth a lot less then the money put in. A Tax by any other words is still a tax and no representation.

  22. anonymous says:

    Expats from the US, unless you declared an employer contributions each year as earned income on your tax return, which was a foreign earned income and excluded from taxation, be prepared to pay tax on it when you get lump sum. Good luck with figuring out the taxable portion of your lump sum distribution, as earned interest will also come into play. Keep your annual statements, you will need it to do the calculations.

  23. anonymous says:

    What is not taken into account that another marker crash is possible and may wipeout the funds which are in hands of marginally competent people.
    By keeping expats money they hope that some of it will not be withdrawn ever for whatever reasons and then they would expropriate it as they did few years ago with what they called “dormant “bank accounts. If you don’t remember, bank accounts that were not accessed for 7 years were called dormant.

  24. Anonymous says:


  25. lulu says:

    me and my wife will be leaving. we came on the island knowing some facts. they are changing that now. fairest approach possible would have been: you came to the island when the old law applied, you live and leave by the old law. good people are going to leave, wishing good look to the ones who decide to stay , but they will remain inside a system who will be under a lot of uncertainty where a lot of businesses will go bust.

    • Anonymous says:

      that is how it is done everywhere else, but Cayman. It is illegal in my opinion to change the rules once you have been hired under different rules.

  26. Anonymous says:

    bye bye Cayman !

  27. Anonymous says:

    Some fool from a pension company came to do a presentation at the restaurant I work in. He said you have to save because $1,000,000 will not be enough at 65. Most of us just want to pay our phone bill. I did some math and it will take almost all of my salary and most of my tips for the next 40 years to save that.

  28. Anonymous says:

    I’ve been contributing to a chambers pension fund for nearly a decade and it’s worth less than the total of the contributions!

    • a nony mouse says:

      Lol – that is total Bull! Chamber put their financial statement on their website and from a quick overview this can not be true. Unless you invested a large lump sum in their plan the day before the 2008 crash this is completely impossible. I am not saying that the returns have been amazing but to say that you lost is just a flat out lie. I would love it if someone from Chamber would respond to this with what their actual 10 year return has been.

      • Anonymous says:

        Hey Mouse, You seem to know a lot about these pensions..Are you a Progressive?

        I don’t know about Chamber but I do know that mine at British Caymanian is in the tank..I have no clue what they are investing my money in but I am growing tired of seeing fees and negative figures..

        There is nothing to hold these guys accountable. Are our funds even insured?

        I don’t know which plan you are with but it sound like you are with the Government Plan so you should be okay, PPM will take care of you but a lot of us on the outside are suffering greatly..

  29. Anonymous says:

    The pension fund managers need to be held accountable when they lose our hard earned cash on a regular basis. They should be paid depending on their performance. Is the CIG taking into account the thousands of dollars lost each year by the average joe?
    Can we get a refund !.

    • Anonymous says:

      There is no word in Caymanian for accountability.

    • Anonymous says:

      I see in the future where caymanians can be only managers, and we will need to make an FOI to see all the reported “losses” that will go into their Miami weekend spending sprees.

  30. Anonymous says:

    Mm. I feel a group legal challenge coming on to the Privy Counsel

  31. Anonymous says:

    why do caymanians not want it best and brightest to stay????

    • Anonymous says:

      It’s not the Caymanians my dear, it’s the sub-group of expats you think are on your side and they’re playing the race card to get rid of you unless you’re a black professional from their country of orgin

    • Anonymous says:

      Because they can not compete? Unless they go overseas for school.

  32. Anonymous says:

    expats are locked into a pension fund even if they leave…..and caymanians can withdraw from their pension to gamble on property investments…..?????

    just another day in wonderland……..

    • Anonymous says:

      that’s due to the expats being more likely to retire in Cayman than Caymanians, lol

  33. Anonymous says:

    The DLP website is a little lacking in information….

  34. Anonymous says:

    There is a lot of uncertainty with the savings plan. I am self employed and very close to stop paying myself a salary, and the accompanying contributions. Like some say, it is not 100% of my retirement plan. I would just as soon cash it in and buy a bigger boat at 65.

    So what does happen at 65? Can the money be removed lump sum? If not, is there really a limit of $1000 a month? I am 15 years from retirement age and already the account would take 25 years at $1000 a month to dry up. I don’t expect to see 90… Sorry, just a fact in my ancestry, will the balance become part of my estate? Will it be removed lump sum or transferred at the same rate of $1000 a month? Will their be a substantial account closing fee? A death tax?

    When contributions stop, will the same monthly fees apply for “managing” my money?

    If the only way to get a lump sum out at retirement age is to leave the country for two years. I can see plenty of Caymanian’s becoming “expats”.

    • anonymous says:

      Good questions. You still not going to get lump sum if you leave the island.

      • Anonymous says:

        If you leave the Island for two years, have the assets transferred to a recognized scheme, then draw a pension under that scheme’s/country’s requirements you will be fine. In the UK you can take 25% take free as a lump sum, even if you are resident for tax purposes, then move back and use an income draw-down scheme where you can withdraw part of the pension pot along with any investment returns. That’s my plan currently, subject to change!!

    • a nony mouse says:

      if you have 300k in your fund than a significant amount of that must be voluntary contributions i.e. you paid in about the cap required of 6k per year. in which case yes you can take that as a lump sum. By the time you retire in 15 years you will likely have a big enough fund to purchase a meaningful annuity.

  35. Anon says:

    Woohoo. This is great news. We left in august and myself and husband had a lot of savings in pensions in Cayman. This is the best news. Now we can invest in our futures and property somewhere that actually wants us!

    • Anonymous says:

      Generally speaking taking large amounts of cash out of your pension scheme isn’t a good idea, even if you are ‘investing’ it in property. You might also want to check on the tax situation in the country you are in, it will probably be viewed as income, and taxable. I wouldn’t be surprised if there was some tax sharing requirement from the disbursement of the funds that pension providers have to complete, Best get some advice before you get a tax bill, or worse!

      • Anon says:

        I have indeed sort advice. and the advice is this, get your money out as soon as you can. we plan to invest some in pension savings and house/ land- the instability of cayman means several things and all are worrying to have any money to be staying there. either way it has to leave the rock!

        the CI Gov do not currently have enough cash to pay all those Caymanian’s in civil service that will need to draw a pension in the coming 5 – 10 years. where do you think this money is going to come from? my belief ( and others i have discussed with) that they will play a slow game in changing the law to adjust the dormant account laws and making it mandatory that you must pay the pension into a local account.

        so, heres the scenario – CI gov changes the law that means you cannot transfer you pension out of cayman but it can be payable into a local account. however, you leave island but leave account open for these purposes when you retire. all good right, nope! you don’t use account for 9 years because you don’t need to right? not until you can access pension. However, the dormant account ( no activity) means the CI Gov can take the account or close it. ok, so they close it with no money in it, fine. now you come to retire and what happens – you cannot get your cash because you don’t have a local account. now, you ask to open an account for these purposes and you are told – you are no longer a resident so cannot have an account.

        this is advice I have had from multiple lawyers and sources and it takes only small changes in the law over time that means most people will not notice until BAM! sorry your pension has gone , and it was done legally and is now lining the Goc coffers !

        this is just one scenario – there are a great many more that would make it very very easy for expats that cannot stay to kiss goodbye to all their hard earned savings.

  36. Anonymous says:

    Scam City!

  37. Anonymous says:

    Is there or will there be a provision for individuals currently unemployed to withdraw funds from private funds in order to be able to support / maintain themselves without depending on the NAU? There are many individuals who have funds in their private pension and it would be a great help if some could be withdrawn, as the three months assistance, (though appreciated), from NAU doesn’t help in the long term.

    • a nony mouse says:

      yes this is included in the new law – if you have voluntary contributions in your pension (i.e. over and above the required 10% per annum) than you can withdraw those to use towards education, housing, temporary unemployement or healthcare. If you don’t have voluntary contributions than no you cant. As you will need these when you are retired and no longer able to work.

  38. Anonymous says:

    Any changes to the amount you are able to withdraw from your pension monthly once you reach retirement age? It is not possible to live on the current $1000 KYD per month!

  39. Anonymous says:

    Now wait for the rush to the door. No one in their right mind, with little sign of a PR decision on the horizon, will want to wait for two years before having access to their pension pot.
    CIG have just made a huge error of judgement as the trade off for a 9 year roll over was the prospect of a modest pot of cash to start all over again.

    I appreciate that Cayman was unique in this approach, but these are unique circumstances as most countries accept residency after 5 years without jumping through hoops.

    The bureaucracy of repatriating money to the third world will kill this idea if the govt are serious about transference to an overseas policy. Many countries are just not set up for this and honest people’s money will go missing, if it ever leaves Cayman in the first place, which I doubt!

    This is a PR and human disaster waiting to happen, and it may see a decline in the expat workforce, which maybe welcomed by some, until their standard of living is affected and businesses go bust.

    1 year, 1 month, and counting down.

    • Anon says:

      Yup, we have over 9 years worth of savings in pensions there. We left because of the anti expats vibe that has been growing and the crap shoot that is PR and the significant chance that any investment would literally be like throwing it away or even taken away in the future. I am sure many others will be thinking the same especially with the opportunity to get all their money back in one lump. Huge relief for us and just solidified our decision to leave.

    • Anonymous says:

      Just think of it as what it is. A TAX. One they have figured out a way to almost show you that you will get back maybe but not until they have used it long enough to insure that they can get their own pension out of it first. It is what it is. It is the Caymanian way to get what they need from that which is not theirs.

  40. Anonymous says:

    I guess I don’t fully understand the reasoning for restricting the withdrawal of funds by expats leaving, the withdrawal of cash from the fund, or transfer of assets, has the same effect, leaving the fund with less participants, and cash, to share the fund’s costs. Usually a Government would add restrictions on withdrawing pension funds because a) they would have an extra cost of funding retirees (won’t happen as they’ve left) b) there was some sort of tax advantage on the investments (not an issue here).

    The only outcome I can see is that pension funds will now have to keep records on some people until their retirement ages, then potentially arrange payment to wherever in the world they reside, with a guest worker potentially 30 or 40 years from retirement when they leave, that has to add a burden, and a cost to the fund?

    • Anonymous says:

      Like all good pyramid schemes it will last as long as people don’t take out their funds until its too late. Hence the LAW that only expats can not take out their funds until as long as possible. Without that it would last a year.

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