Pensions

aviation, commercial and private propertyrelated insurance and health insurance for international crew members.

Saxon Insurance Tel: (345) 947 2966 Email: insurance@saxon.ky www.saxonmg.ky Insurance services include: vehicle, property, contents, travel and commercial.

Vanguard Risk Solutions 36A Dr. Roy’s Drive, Cayman Financial Centre Tel: (345) 949 5836 Email: info@vrscayman.com www.vrscayman.com A leading insurance broker in the Cayman Islands for over 35 years providing independent and trusted advice from experienced and qualified professionals. Vanguard offers a comprehensive range of insurance solutions for both individuals and companies including for homes, commercial and condominium buildings, general and professional liability, motor, marine, health and group life insurance.

SEE AD PAGES 141 & 296

Life Insurance Michael Webster is an independent broker who specialises in life insurance. Other insurance providers listed in this chapter may also provide life insurance.

Michael Webster - Life Agent Tel: (345) 925 5433 Email: michael.webster@cic.com.ky www.lifeinsurance345.com Michael Webster offers protection for both your mortgage and family. He offers term life, mortgage protection term life and whole life policies. For peace of mind, call for a free, no obligation quote. SEE AD PAGE 166

Sagicor 198 North Church St, GT Tel: (345) 949 8211 Email: cy_infocayman@sagicor.com www.sagicorcayman.com Sagicor has operated in the Cayman Islands for over 30 years and is registered with the Cayman Islands Monetary Authority (CIMA) as a Class A Domestic Insurer. They are a member of the Sagicor Group of companies which operates in over 22 countries across the Caribbean and USA. Sagicor offers a diverse range of Life Insurance products to fit your

individual needs. SEE AD PAGES 127 & 148

PENSIONS Private (Non-Government) Pensions The Cayman Islands is different from other jurisdictions when it comes to pensions. There are two pension sectors in Cayman, privately funded pension plans and Government funded pension plans for civil servants (see page 149 for information on Government funded pension plans). The private sector pension plans are funded by employees and employers but Government-mandated. The National Pensions Act requires both employees and employers to contribute a total of 10% of the employee’s monthly earnings to an approved pension plan. The law states that employers must contribute

We’re like packing a box and everything fits perfectly.

In other words, you can get everything you need in one place. At CG Britcay, we can help you protect your personal belongings, motor, home, health and more, all in one convenient location. To learn more, visit cgcoralisle.com

British Caymanian Insurance Company Limited

BritCay House, 236 Eastern Avenue, P.O. Box 74, George Town, Grand Cayman KY1-1102, Cayman Islands tel: 345-949-8699

Good Like That.

SETTLING IN

MAKE IT A POLICY

Pro TO mises. ALWAYS KEEP YOUR

With our full range of Life Insurance products, we can help you ensure your loved ones are always protected.

OUR PRODUCTS INCLUDE: • LIFE INSURANCE • MORTGAGE PROTECTION • FAMILY PROTECTION • CRITICAL ILLNESS COVERAGE • ANNUITIES • INVESTMENTS

Call (345) 949 8211 to speak with an advisor

sagicorcayman.com

a minimum of 5% and employees must contribute a maximum of 5%. Those who are self-employed are required to contribute 10% of their earnings to a pension plan.

In May 2016, the National Pensions (amendment) Act 2016 was passed with over 50 provisions revised. A few of those changes to the Act include: > Adjusting the normal age of entitlement from the age of 60 to 65 for those who are 47 and younger as of 1st January 2017. Those who were 48 and older as of 1st January 2017, may still retire at 60 (early retirement at 50). > Raising the maximum annual pensionable earnings from CI$60,000 to CI$87,000. > Accessing voluntary contributions for housing, medical, educational, and unemployment purposes. > Non-compliance from employers can result in fines up to CI$10,000 and possible imprisonment.

In April 2020, an amendment to the National Pensions Act was passed that enabled workers to access their private pension funds up to a certain amount to assist those who had been financially impacted by the COVID-19 pandemic. The scheme was open to both Caymanians and non-Caymanians, as well as those who are self-employed.

Under the emergency-withdrawal scheme, private pension members could withdraw from their accounts 100% of their pension funds not exceeding CI$10,000, and 25% of funds in excess of CI$10,000. Those who left the Island after 1st February 2020 were also allowed to withdraw funds from their pensions. Public servants have not been granted access to their government pensions. This scheme drew to a close on 31st October 2020 by which time 43,000 applications had removed CI$489.3 million from thier pensions.

The Government also implemented a ‘pension holiday’ retroactively from 1st April 2020 that was extended until 31st December 2021 in June 2021. It allowed

both employees and employers to opt out of pension contributions for the duration.

While the pension withdrawal scheme has been incredibly helpful for those who had their livelihood impacted by COVID-19, some Government MLAs have voiced their concern that it will have a significant knock-on effect some years down the line.

If you have a query regarding the new Pension Act, call the Department of Labour and Pensions at (345) 945 8960 or visit www.dlp.gov.ky.

Registered Pension Providers

BAF Insurance Company (Cayman) Ltd. Dot Com Centre, Dorcy Drive, Industrial Park Tel: (345) 949 5089 Email: cayman@mybafsolutions.com

Cayman National Pension Fund Suite 6201, 62 Forum Lane, Camana Bay Tel: (345) 640 9263 www.caymannational.com

Chamber Pension Plan 2nd Fl, Strathvale House, George Town Tel: (345) 745 7630 www.chamberpension.ky

Coralisle Pension Services Ltd BritCay House, 236 Eastern Avenue, GT Tel: (345) 949 8699 Email: pensions_ky@cgcoralisle.com www.cgcoralisle.com Excellent investment returns; competitive administration/investment fees (no hidden fees); contributions allocated and invested every month; personalised and flexible investment strategies; comprehensive employee and employer statements; enhanced access that allows members to verify and make amendments to their account details and investment allocations online.

Island Heritage Retirement Pension Plan Island Heritage House, 128 Lawrence Blvd Tel: (345) 949 7280 www.islandheritageinsurance.com Island Heritage and the BF&M Group of companies offer long-term value through active capital management and careful analysis of risk/return. Pension members are provided with the solutions, resources, tools and guidance needed to develop and manage a

retirement strategy. SEE AD OPPOSITE PAGE AND

PAGES 167 & 269

Silver Thatch Pension Plan (Powered by Saxon Pensions) Saxon Centre, 14 Saturn Close, Eastern Avenue Tel: (345) 943 7770 Email: support@silverthatch.org.ky

Public Service Pensions Civil servants and other public servants are members of the Public Service Pensions Plan (PSPP), which is administered by the Public Service Pensions Board (PSPB). This means that 15 ministries and portfolios of the Cayman Islands Government, along with 13 Statutory Authorities and Government Owned Companies are actively participating in the PSPP. As the largest pension administrator in the Cayman Islands, the PSPB oversees pension accounts for over 10,000 individuals, with over 1,800 of these members being pensioners.

The PSPP has both Defined Benefit and Defined Contribution components. Any member who joined the PSPP prior to January 2000 is part of the Defined Benefit Plan portion. Individuals who join the PSPP after January 2000 are part of the Defined Contribution Plan. This means that if you are looking at starting employment with one of the PSPP’s participating employers, you will join the Defined Contribution Plan.

Contributions & Rate of Return: For plan members of the Defined Contributions Plan, contributions of 6% will be deducted from your salary or wages and will be credited to your Employee Contribution Account. A further 6% of your pensionable earnings will be credited to your Employer Contribution Account on your behalf by your employer. The balances in both these accounts will increase each year based on a credited rate of return, which is calculated from the average of the rates of return received on investments for the previous three years, net of expenses.

Retirement Options: Your age, years of service and Caymanian Status are all factors that will determine your retirement options, or options available to a plan member if they leave the PSPP before becoming eligible to retire. The normal retirement age is 65, but early retirement options are available for plan members with at least 10 years of qualifying service. Upon electing to retire, a plan member can collect a full monthly pension or they can elect to commute up to 25% of their benefit as a lump sum and receive a reduced monthly pension.

If a plan member is no longer employed with a participating PSPP employer and they are not eligible for retirement, they have options to leave their accrued benefit in the Plan until retirement, transfer it to another approved plan in the Cayman Islands or request a cashout of their accrued benefit. Of note, the cash-out option is subject to satisfying specific conditions relating to a nonCaymanian no longer working and residing in the Cayman Islands.

Public Service Pensions Board: If members want to find out information specific to their pension, they can meet one-on-one with a PSPB member services officer. Walk-in service is available Monday to Friday or by appointment at both of the PSPB offices. The PSPB Grand Cayman office is located at the Government Administration Building (133 Elgin Avenue) in George Town and the PSPB Cayman Brac office is located at 5 Dennis Foster Road in Cayman Brac. For more information, visit www.pspb.ky or contact the PSPB on (345) 945 8175. THE

Tell them you saw it in the