PENSIONS

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 and employers to each contribute 5%, up to the annual maximum contribution of CI$3,000. Most plans allow for additional voluntary contributions. 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 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. 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 specified. If you have any queries regarding your pension, contact your pension provider first. If you have a private (non-government) pension and have a query regarding the pensions law or its requirements, call the National Pensions Board on (345) 945 8960 or email npo@gov.ky. If you have a Cayman Islands government pension and have a query, call (345) 945 8175.