Pension Holiday in Part Over
Published 3rd May 2011, 4:10pm
The temporary one-year suspension of pension contributions for Caymanians comes to an end on Tuesday, 26 April. However, the 'pension holiday' period for non-Caymanians will continue for an additional year.
Amendments to the National Pensions Law, allowing Caymanians a temporary one-year suspension of pension contributions and a temporary two-year suspension period for non-nationals went into effect on Monday, 26 April 2010.
The amendment affected private sector employers, employees, and self-employed individuals, and required voluntary participation for the permitted timeframe. It was initially implemented to ease financial burdens fuelled by the worldwide economic recession and to stimulate the Caymanian economy.
"With the expiry of the suspension, participating Caymanian employees can expect to see their employer's resumption of salary pension deductions along with the payment of these contributions to their relevant pension plans," Superintendent of Pensions Amy Wolliston explained.
As a reminder to employers she also noted that Caymanians are pensionable immediately. They are required to participate in a pension plan and pay pension contributions, from their first day of employment.
Minister with responsibility for pensions, the Hon. Rolston Anglin, JP, added, "These contributions are extremely important to continue each employee's long-term savings for retirement. It's a critical part of their retirement planning."
For details on the suspension, refer to the National Pensions Law (2010 Revision). A copy is available on www.gov.ky under the features section. Individuals may also contact their pension plan or the National Pensions Office on 945-8960 with questions.(GIS)