Cayman Islands Pension Providers & Requirements

Pension contributions are compulsory in the Cayman Islands so in this chapter we explain the legal requirements for pensions: What the law requires, what you can expect to have deducted from your monthly paycheck and when you leave the Island, how you can take your pension with you.

PENSIONS

Cayman is different from most other countries regarding pensions. The pension system is privately funded in Cayman, but government-regulated. Both employers and employees must contribute to a pension scheme in respect of any individual who has been resident in the Islands for at least nine months. The government has set up its own arrangements to administer pension contributions paid by civil servants and it is separate to the scheme managed by private money managers who deal with all non civil service employees.

Up until 26 April 2010, the Cayman Islands Pension Law required employers and employees to contribute an amount equivalent to 10% of an employee’s monthly salary into an approved pension scheme. The legislation required employers to contribute at least 5% and employees up to 5% (a total of no less than 10%), with maximum annual pensionable earnings of CI$60,000. Until recently, neither employers nor employees have been able to contract out of this minimum requirement. However, from 26 April 2010, for a period of one year for Caymanians and two years for non-Caymanians, the pension law has been changed to allow a “pension holiday”. This means that by mutual agreement, individual employers and employees may choose to contract out of the requirement to contribute, thereby taking a contributions “holiday”. Should the employer and the employee both agree to the “holiday” they must do so in writing and apply to the administrator of the pension scheme for approval. If approved, neither the employer nor the employee need make any further contributions until the expiry of the “holiday” period. Some employers have agreed with employees to take the “holiday” whilst others have announced generally to staff that they believe that continued contributions are in the employee’s best interest in the long term and will not contract out.

Most plans allow for additional voluntary contributions. Pensions are transferable from one registered pension plan to another when changing jobs and there is usually no transfer charge. If you leave Cayman and the sum in your pension account is under CI$5,000, you can receive your funds within six months of leaving the Island. If your pension total is more than CI$5,000 and you leave the jurisdiction, there is a waiting period of two years, or subject to the approval of the Superintendent of Pensions, you can transfer your money to another regulated pension fund. To receive your funds, a refund application must be submitted to your pension provider and they will supply you with a list of things they need to prove that you are leaving the Island. The normal pension retirement age in Cayman is 60 years of age.

Under the Cayman Islands National Pensions Law, if you are married, your spouse is automatically your beneficiary unless otherwise specified. If you have any queries regarding your pension, contact your pension provider.

If you have a private (non-government) pension and have a query regarding the pension’s law or its requirements, call the National Pensions Office on (345) 945 8960 or visit their website (www.npo.gov.ky) which is very informative and easy to read. If you are a civil servant and have a Cayman Islands Government pension and have a query, call (345) 945 8175.

Registered Pension Providers
BAF Insurance Company (Cayman) Ltd.
2nd Floor, DotCom Centre, 32A Dorcy Drive
PO Box 10389, Grand Cayman KY1-1004
Tel: (345) 949 5811 Fax: (345) 949 7192

British Caymanian Pension Plan
(Administered by Colonial Private Trustees)
BritCay House, 239 Eastern Ave
PO Box 74, Grand Cayman KY1-1102
Tel: (345) 949 8699 Fax: (345) 949 0538

Cayman National Pension Fund
Suite 6201, 62 Forum Lane, Camana Bay
PO Box 30239, Grand Cayman KY1-1201
Tel: (345) 640 9268 Fax: (345) 640 9804
shara.myles@cnifs.com

Chamber of Commerce Pension Plan
2nd Floor Butterfield House, 68 Fort St.
PO Box 609, Grand Cayman KY1-1107
Tel: (345) 745 7630 Fax: (345) 745 7699
www.chamberpension.ky

The Fidelity Pension Plan
Cayman Financial Centre, Dr. Roy’s Drive, GT
& Fidelity Financial Centre, West Bay Road
PO Box 914, Grand Cayman KY1-1103
Tel: (345) 949 7822 Fax: (345) 949 6064
Email: pension@fidelitycayman.com

Silver Thatch Pension Plan
(Administered by Saxon Administrators)
DMS Centre, 14 Saturn Close, Eastern Avenue
PO Box 31694, Grand Cayman KY1-1207
Tel: (345) 943 7770 Fax: (345) 943 7771
Email: support@silverthatch.org.ky