Pension payments paused until year-end
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(CNS): The current holiday from the mandatory pension contributions by employers and workers in the private sector will now continue until at least the end of the year. However, the window of opportunity for people to access the funds they have in their pensions will not be extended and there will be no second go at the pension pot, Premier Alden McLaughlin has confirmed.
The decision by government, in light of the impact of the COVID-19 pandemic, to suspended the legal requirement for all private sector employers and employees to split a contribution of at least 10% of every person’s salary into a pension fund has been broadly welcomed in the community. And with many businesses still not open at all or operating on the edge as a result of the economic downturn due to the health crisis, the government is extending the pause on the mandatory requirement.
However, McLaughlin said that there were no plans, despite multiple requests, for people to take more from the funds following the massive withdrawal of cash by tens of thousands of people over the last few months.
Since government amended the law in April, which allowed people to take a CI$10,000 lump sum plus a further 25% of their remaining pension fund balance in order to get through this unprecedented time, more than 35,000 withdrawals have been made. According to the Department of Labour and Pensions, those withdrawals totalled around $350 million.
The money is believed to be behind the relative, albeit temporary, buoyancy in the local economy in the wake of the pandemic.
Close this foolishness down bad idea in the first place! That money needs to be taxed ooooh yeah ! These economic pirates need to go home!
Why were W/permit holders allowed to withdraw their pansion funds if they weren’t leaving the island? Now all money gone to their home countries and they still here with their hands out.
The better question is why should work permit holders have to pay pension at all, especially those who don’t have a chance in Hell to get PR or Status.
Easy one, the point was to have a larger pool of assets therefore decreasing the administration costs for Caymanians.
What are the authorities doing to prosecute those who are not in the Cayman Islands or departed before 1st February, 2020 that had their applications signed off by Notaries here in Cayman stating that the pension members are here in the Cayman Islands when they are not here. The millions of dollars that have been sent overseas by pension providers should be checked with Immigration records to know whether they were in the Cayman Islands. This was the normal practice in the past.
Why you dont find something sensible to complain about instead of this nonsense. Thats their money. You should be more concerned about the ones not get their hard earned money. Kmt
Agreed
So I am not able to get my hard earned money because I want to be law abiding. Is that fair? There should be consequences if you choose to break the Law.
Sound hurt dont leave people alone
That’s wonderful, now let me take more of my pension money that I already earned and which won’t pay for anything in my retirement anyway. By the time you retire in Cayman you either have the money or you don’t, no plan is going to save you, no $12,000 a year is going to save you. Give us our money and we will spend it. I need it and I’ve been earning it for 9 years.
And what will you do when you retire and you have no income? Go to Government with your hand out?
No, I’ll have all the money I need saved by then because I got this pension money when I was 32 and cleared all my debts. And frankly, I’m expecting a large inheritance. The previous withdrawal went to furnishing my first property. I am doing what the government wants me to do with my money – spending it, in the local economy. I would like to continue doing that. I could not care less what anyone thinks about that.
Oh really? We’ll see about that.
lol most of the people who have entered the workforce in the last 10 years will never get to retire. The age of retirement will keep going up.
I have been unemployed since March. I am worried how I will pay my mortgage.
Will the government will help me to pay?
If I have enough money in my pension. Why I cannot use the money to paid utilities and Mortgage until I get a Job.
Who assures you that you are going to reach 60 years a old with all this stress.
This will get worse with all work permit holder can return to the islands.
Blessed
There are jobs available you just have to be willing to do them in order to cover your bills until the job you want comes along. You could be working in a restaurant, a supermarket or as a delivery driver right now as I’ve done all 3 since tourism shut down. I don’t want these jobs but I’m doing them to get by rather than sitting around complaining with my hand out.
Good decision, an employer and an employee can voluntarily decide if they wish to continue paying in; however, temporarily removing the legal requirement will help a few struggling small businesses.
No it won’t. It will help all the pension dodgers.
Why can’t alden allow the statutory body’s of government to take there pension if there contributing and not government.
Wow…their and they’re….you used the wrong one not once but twice for two different meanings. Impressive.