Rules change on pension refunds

| 12/12/2019 | 53 Comments
Cayman News Service

(CNS): From the end of this year onward workers in the private sector will only be able to access refunds from their pension when they leave Cayman if there is less than CI$5,000 in the account. The changes made to the National Pensions Law, which will come into effect on 30 December, largely impact expatriate workers and will prevent many from accessing their pension funds until retirement, even after they leave Cayman and stop paying into the schemes.

Members with accounts valued at greater than CI$5,000 wanting to access their pension for a refund before the deadline must satisfy a number of requirements, officials said in a release about the change.         

Firstly, the person’s employment must be terminated, with no pension contributions made for the last two years, In addition, the person must have stopped living in Cayman for more than six months.

Anyone who meets these requirements and submits an application form by the 30 December will qualify to take the money in their pension accounts.

Meanwhile, refunds of accounts valued less than CI$5,000 will continue to be governed by the pension plan’s rules and its administrator.

The National Pensions Law applies to private sector workers only. Pensions for members of the civil service are governed by the Public Service Pensions Law. All workers in Cayman are mandated to have a private pension plan via their employer and must pay in 10% of their earnings, which in most cases is split between employer and employee but in some cases the employers covers the full contribution.


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Category: Laws, Politics

Comments (53)

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  1. Anonymous says:

    I was robbed by them already $1500 in 2009
    There is no surprise, why the age of 65

  2. Anonymous says:

    When will the pensions board actually enforce companies that are not paying the pensions for their staff? Why do the staff have to complain? Why aren’t the pension providers automatically reporting to the pension board which then puts pressure on the owner of the business? To me it sounds like a lot of free lunches/dinners/drinks and side deals not to pay pensions for low income expat staff.

  3. Anonymous says:

    Chamber Pension Plan is apparently so crap its not even on the list of Recognised Overseas Pensions listed by the UK Revenue service

    • Anonymous says:

      I stand to be corrected, but one of the criteria for HMRC to recognise an overseas Pension, is that the country in which the pension is located must be taxable. As Cayman is tax neutral, it could not be a ROP even if it was the world’ top performing pension scheme – of course the Chamber Plan is hopeless anyway.

  4. Anonymous says:

    Are there any Registered Pension Plans that are performing anywhere near to the performance of run-of-the-mill index funds? The 20year performance of mine has barely exceeded fees. Now we are locked into the handful of deficient investment managers. At least someone’s making money…

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  5. Judy Scott says:

    Can someone tell me why it takes up to 6 months to get your pension payment when you reach age 65?

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    • Anonymous says:

      Perhaps the money is invested in funds or some other type of deposit and taking out funds before a particular date could negatively effect the payout to you as well as the other persons whose funds are comingled with yours.

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      • Anonymous says:

        That’s baloney. All funds are taking in contributions too, so there would be no cashflow constraints to deny a qualified person from withdrawing their funds. If funds are paid in monthly, then there should be no more than 2 months to get your money out – assuming you’ve provided the applications, the affidavits etc.

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  6. Anonymous says:

    time for a class action lawsuit to stop cig ripping off expats yet again.

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  7. Anonymous says:

    I wouldn’t mind so much if they just let me access what I had in my pension for a decade BEFORE they changed the law. Pulling the rug from under us like that was evil. I gave up everything I had to come here yet when I go home I no longer have a deposit for a home and will always have to rent.

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    • Anonymous says:

      Umm, if you have been here for more than a decade, Cayman is home. If you have no intention on staying might it be you told a little fib on one of your most recent immigration applications?

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      • Anonymous says:

        Really … when CSPRB takes forever with applications and then IAT another lifetime with an appeal … 10 years is barely a moment in Immigration matters

  8. Anonymous says:

    *Making it legal to steal from the expats.
    *Yes hold our money longer for their benefit.
    *Once again it’s time to screw the expats. Caymankind.
    *It’s one way of saying, “hey, expats, you want your money, then just work here in Cayman until your pension reaches 5k, or else we will get hold of your money until you die.” What a greedy people!!!

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    • Anonymous says:

      Get a grip! Caymanians have been living with that limitations for years! I am a caymanian and would love to withdraw my money, even to go somewhere else, and cannot do so.

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    • Anonymous says:

      If you’ve read the amendments you would know it allows you to transfer it to an eligible pension scheme in another country. No one is trying to keep your money.

  9. Reired, not tired says:

    A Ponzi scheme that only benefit the providers and their Auditors!

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  10. Anonymous says:

    So what? I know ex-pats who have been working here for years and say they’ve never had to pay a cent into the pension fund. It’s all about who you know and who you work for.

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    • Anonymous says:

      Some employers pay the full 10%
      Some employees don’t have pension payments (helpers/domestic)
      Done work part time for several different employers and don’t qualify for pension as insufficient hours from each employer
      They should ask for pension contributions to be made

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    • Anonymous says:

      Sounds like they work for Real Caymanians … rules doan apply to dem bobo

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  11. Aa says:

    Can you still transfer it out to to sit in a pension (not accessible as cash) in your home country? You still can’t access it until probably 55 but at least you can find a provider who will have lower fees.

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  12. Anonymous says:

    Nothing new. $5K was always refunded. Smart people took their pensions, spent a year working in Bermuda then came back.

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  13. Anonymous says:

    This is ridiculous I shouldn’t have to leave my pension here if I’m gone and not coming back. Also don’t you lot always tell us to go home??? well now we’re not going to because we have to stay here to get our pension.

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    • Anonymous says:

      You don’t have to leave it here, you can transfer it to a home country scheme, although there may be tax charges and the pension plan might have some rules on the type of plan you can transfer to. It would be advisable to do so as annual fees have long been known to be a big factor in how well your fund performs, which is why most countries cap the fees on a pension to very low rates. All funds have overheads that need to be covered, but with small funds the share of those costs is high to the individual, hence, move it! There was supposed to be a list of approved funds that you can transfer to, but I’ve not actually found one.

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    • WhaYaSay! says:

      @ 3:56 pm. Pension is for RETIREMENT and not a “savings” account. You get your money when you turn 65 (and by “get your money” I mean you begin to receive a pension cheque). Cayman must be one of the last places that allowed pension funds to be treated like a piggy bank.

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      • Anonymous says:

        Because in most countries pension contributions are tax free but income isn’t – so allowing people to take their pension as cash evades income tax. Here its about making sure expatriates help fund the local pension funds by subsidisng the administration fees on what is a very small employment pool. Of course, CIG could solve that problem by letting people pay into international pension funds , but the local pension funds wouldnt like that one little bit.

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      • Anonymous says:

        What you are saying is not accurate. Most countries allow you to cash out of non-government pension plans (such as 401Ks in the US or RRSPs in Canada). When you withdraw it, the withdrawal is taxable.

  14. Anon says:

    I don’t see any locals complaining about this, I wonder why?.

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    • Anonymous says:

      Well I am a local at retirement age with over 300k in the pension fund. When I applied to get it, all I can get is 12k a year. So yes, I am complaining too, I have bills to pay and have to keep working.

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    • WhaYaSay! says:

      @3:07 pm. That’s because “locals” have NEVER been able to take the cash like visiting workers.

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      • Anonymous says:

        That’s because visiting workers by definition leave – and won’t be a burden on the tax payer if they don’t provide for their retirement.

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  15. Anonymous says:

    Once again it’s time to screw the expats. Caymankind.

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  16. David Shibli says:

    Here we have an interesting scenario. This legislation is designed to stem the flow of money out of the fund while maintaining the steady flow in.
    This enables the administrators full access to a massive pot of cash that trickles away slowly while they pay themselves handsomely.
    In legal terms, this is known as a Ponzi scheme and is a criminal offence. Apparently the appropriate legal term is “fraud against the depositor”.
    The Pension Funds of the Cayman Islands should all be independently audited to verify that all obligations can be met. (I highly doubt it.)
    We cannot be intimidated. Money that you have contributed belongs to you.
    It is yours.
    No government on earth has the right to prevent you from accessing your hard-earned money.

    The people of Cayman are being destroyed by an unrighteous government who seem to be making it up as they go along and as it suits them.
    They seem to have no problem with the ongoing struggles of their indigenous people while apparently claiming their votes with lies.
    I take comfort in the fact that our charlatans who bear rule over us will have to stand on the day of judgement to give account of themselves.
    I would recommend that they change tack before that day.
    Serving a luciferian secret society by membership in a masonic lodge can not end well for anyone.
    Please reconsider your positions.

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    • Anonymous says:

      Are the proceeds of gambling pensionable? What’s 5% of 40k?

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      • David Shibli says:

        LOL How (self) righteous.
        I suggest you have a read of Matthew 6:2. (Please do)
        Perhaps giving has taken place that you know nothing of? Ask CNS.
        But I know you were joking, right? lol.

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        • Anonymous says:

          I prefer non-fiction to be honest and no, I wasn’t joking.

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          • Anonymous says:

            Well your non-fiction preference may come back to bite you in the nether regions. Don’t say I did not warn you.
            With all due respect.
            David

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    • Logical says:

      Bobo, I was with you up until you took a left turn into satanic conspiracies.

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      • David Shibli says:

        Well I guess you have not been keeping up with the news?
        Do you not know the affiliations of your leaders?
        They are all masons. Have you not read the works of P. Manley Hall? You obviously have not and that is why you have made such an uneducated statement.
        Anonymous friend, when statements are made in the public domain declaring that [some] are luciferian, you had better be sure that you are telling the truth. I am telling the truth.
        Not a single member of the government or judiciary can negate my statements, but apparently you can.
        Please educate yourself and repost.

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      • Anonymous says:

        @5:52pm yep! believe it or not bro, they’re real! Like, really real. Fa’Real real.

        You might find this to be an interesting read also: https://www.irishtimes.com/opinion/modern-day-demons-1.223763
        (i’m sure someone in this list will remind you of someone you know! This was written 20 years ago and still very true and even more true today)

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      • Anonymous says:

        Haha same

    • Anonymous says:

      Well said Sir. The government should not be able to hold on to anyones hard money ! Expatriate or not. There are Caymanians who are struggling to make ends meet and maybe if could to be able to access our pension to help get back on our feet it would surely help many.

      Having a pension fund with over $75000 and you are under age forty and struggling daily. The government need to ammend this law so persons can access their monies to help themselves out.

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      • Cheese Face says:

        I don’t think you fully understand what a pension is for.

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      • Anonymous says:

        Why would government allow you to take it out to live on. If you are allowed to take it out to live on then when you reach retirement age guess who will have to support you? The same government that you are bad mouthing. You are under forty – go get a job or two.

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    • Anonymous says:

      Pretty sure there aren’t indigenous people here … there were indigenous animals but yas killed them all.

  17. Anonymous says:

    so if you are in your 20’s, 30’s or even 40″s don’t expect the pension to still be there when you hit 65. With the underfunding of locals to pension schemes I 20-30 years there will be great pressure on government to take all the pensions and redistribute to locals who do not have enough to retire on.

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    • Anonymous says:

      Except the Funds are ‘defined contribution’, i.,e., underfunding in / underfunding out.
      (If you’re on an old plan where your employer guaranteed your payout then that’s managed separately, or should be, backed by your employer. Not a lot of those employers left. Even if the company still is most switched over to defined contribution years ago in order to manage the risk.)

  18. Anonymous says:

    Yes hold our money longer for thier benefit.

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  19. Anonymous says:

    Making it legal to steal from the expats. Should cut down on work permits, jobs, and traffic.

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