Fidelity pays up on pension withdrawals
(CNS): A pension provider that faced significant criticism for its delays in responding to members who applied under the law to withdraw their money says it is now paying up and everyone should be paid by the middle of this month. Fidelity Pension Plan was the biggest vocal critic of the legislative change that allowed people to withdraw from their fund. Furthermore, the president admitted publicly that the fund was going to struggle to meet the deadline laid out in the law to pay members.
But last week Brett Hill, President and Country Head of the RF Group’s Cayman-based pension plan, confirmed that the money for all the participants who had successfully applied for withdrawals from the Fidelity Pension Plan since 1 May had been paid out, though he said there may be some delay for some members in actually receiving the cash.
Hill said that, depending on the specified means of payment, certain July applications, including those requiring international wires and credit unions, may still be in process. However, all applications received between 1 and 31 August were being processed and would be paid out by mid- September, he said.
“We thank our clients for their patience through what, at times, has been an overwhelming process,” Hill said. “We hope the funds are able to assist with the many difficulties clients have been, and are still, experiencing as a result of the COVID-19 crisis.”
Fidelity refused to reveal how much it had paid out since government amended the law to allow people access to their pension accounts to help them navigate the economic fallout and job losses as a result of the COVID-19 pandemic. Applicants were allowed to take a lump sum of CI$10,000 plus 25% of the remaining balance.
Fidelity, which is one of the smaller providers with just 11,000 members, faced withdrawal requests from 3,000 of them during the first month, and more have since been added to the list. But some companies, such as Silver Thatch and BritCay, have tens of thousands of members and managed to make the payments within the statutory deadlines.
All told, according to government figures, more than $350 million has now been paid out to members with more in the pipeline. Government had estimated that some $500 million would be released before the window of opportunity closes in November.
It is unclear is how much of this cash has remained in the local economy and how much has been re-invested overseas, remitted to family members of expatriate workers or spent in online shopping sprees, as Hill suggested would happen.
When he was questioned on the matter at a recent meeting Finance Committee, he said he did not think that most of this windfall would stay in Cayman. CNS has contacted various government agencies about this, but at this point there does not appear to be any plan to conduct an official analysis by the Ministry of Commerce to assess where the cash has gone.
Meanwhile, any suggestion that Fidelity was in trouble after it struggled to meet the demands of its members for their money was dismissed by Hill back in May, when he told CNS that the pension arm of Fidelity had been sold to RF holdings last year. CIMA had not confirmed the sale at the time but has since.
Last week the bank announced that the insurance company had also been sold by the Fidelity Group to regional insurance groups, Guardian International and RoyalStar Holdings.
“Fidelity Insurance’s new owners are two of the largest and most well respected insurance groups in the region, with both groups owning insurance companies that have operated in the Cayman Islands market for over 25 years,” officials said in a release.
However, Fidelity remains an independent broker under the new ownership structure and staff remains unchanged. While the Fidelity brand will be retained for an initial period, the new owners are expected rebrand in the future.
Anyone seeking information about their Fidelity pension should contact
carolee.crowley@royalfidelity.com.
Category: Business, Local News
I had no issues at all. They have managed my pension well for years, my payout happened smoothly and I am happy I still have a portion of my funds there. 100% satisfied.
I applied for my regular pension in February and still not paid!
You should contact DLP. I did and got paid recently.
The law and withdrawal for COVID-19 only became effective in May 2020, how could you have possibly applied in February when everyone else had to wait until the law passed? People will complain about everything, take no responsibility any part they play in any situation and provide incorrect details, February, Really, what a foolish comment!
And weren’t they talking about re-organizing the pension scheme? oh yeah now all the sudden no one gives a crap about that and they’re silent… but let’s keep trying to fight a lost cause of letting people have equal rights.
Alden should let us take another 10k for the upcoming recession.
Can they steal your pension when they rebrand? Is that a common trick in business?
They are not stealing it. CNB got taken over by a Trinidadian Bank but people here still have their accounts. The pension & insurance divisions of Fidelity sold off but your accounts remain. ALL regulated locally.
You are all going to be sorry when things get back to business.Vaccines already available in some countries, US will have its available in October. Did not take a penny out, instead balanced my books and looking forward to that money when I retire. No self-control is what I have observed on the island over the past few months.
Actually, it is you who will be sorry. ALL the pensions on island are poorly managed and the fees are well, well above industry standards. Also, the withdrawal scheme of the pension is basically drawn out over such a long period you won’t be getting much of your money, while the pension companies hammer you with fees.
The wise thing to do is withdrawal it and manage it yourself.
So this is what cayman has become? Where are all the proud Cayman I looked upto because they were fortuitous about their Island, about thier Economy?
Don’t worry, Seamen’s benefits will be a good chunk of change by the time I need it. I owned a 12′ aluminum boat once so I qualify. Have pictures to prove it.
you think the pension companies will have anything left, poor investments over years. Better to pull the cash and invest it yourself.
not going to be here when I retire, and I will then pay tax on the tiny amount that they will pay out a month. That’s if the government has not taken all the pensions to look after the locals, who have underpaid into their pensions. You think that the economic sector will still be here in 20-30 years?
Taken the max out, tax free, and will invest myself or in property, and make a far larger return for my nest egg.
Seriously, you are looking forward to receiving $1000 a month when you retire?
I took the full amount out of mine and the market has skyrocketed and I am earning much more now…as for the rest of my pension..same old same old..fees deducted each month and accumulating losses.
Get your money out while you still can!!!
I have requested every month by email that someone would let me know about my account …no email return…no call plus they don’t answer their phone…when someone answer and you ask questions the attitude just come out the phone..
Please someone help..
I wonder what the final tally of their fine will be, I recall that it is supposed to be a certain amount per day overdue and there are a lot of people who’s withdrawals have been overdue for weeks if not months.
and they should pay the fine to each and everyone who was affected. Not just a fine the government collects!
Really, alden has already written that off..no fines for them..
OMG that is fantastic..can’t wait to tell my grandmother we can go to fosters and buy groceries….oh no nevermind she starved to death…thanks Alden
the fact they can’t even give you a basic statement with your withdrawal should tell you everything you need to know. a complete shambles of a financial institution. always have been.
Why hasn’t there been any updated statements? The last statement provided was end of
March – prior to the withdrawals. No one at there answers the phone or responds to emails. They should be investigated. There are numerous complaints from people being ignored by this company.
What about why there not approveing people because of signature not matching which in fact if you use your drivers license it wont because its an electronic signature. Like really now