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
In this chapter we explain the legal requirements for pensions in the Cayman Islands: What the law requires and what you can expect to have deducted from your monthly paycheck. Cayman is different from other jurisdictions regarding pensions. The pension system is privately funded in Cayman, but government regulated. There is no government scheme. The Cayman Islands Pension Law provides that 10% of an employee’s monthly salary must go into a pension. The legislation requires employees to contribute 5% and employers contribute 5% up to a maximum of CI$60,000 of annual earnings. Most plans allow for additional (voluntary) contributions to be received. Pensions are transferable from one registered pension plan to another when changing jobs. There is usually no transfer charge. If you leave Cayman and the sum in your pension account is under CI$5,000 you can take the funds with you within 6 months of leaving the Island. If it is over 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 to another regulated pension fund. Private money managers manage most funds. Please note that under the Cayman Islands Pensions Law, if you are married your spouse is automatically your beneficiary unless otherwise denoted.

Tel: (345) 943 7770 Fax: (345) 943 7771